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I figured to post here because statistically those who drive these kinds of cars are normally well-educated and understand how the world around them works.

There is a quick summary at the bottom for those of you who are in a rush and don’t want to read my life story all at once. I know that this post might be a tad all over the place but I just wanted to write this from the heart and get it off my chest as soon as possible. A huge thank you to everyone ahead of time by the way!

My name is “M” and I wanted to make a post here and ask for some advice. I’m not asking for handouts or begging for someone to hold my hand. I’m a huge car enthusiast and definitely would love to make a long childhood dream come true, but at the same time, I also understand the importance of financial security for the future.

Ever since I was a kid I’ve always loved cars. I don’t really know how to work on them very well (would have to watch a step-by-step video even for a basic oil change or brake job) but fun sports cars have always stirred my soul ever since I was young. Nobody in my family really cares much for cars. We’ve always had simple economy vehicles, mainly Toyota’s and such. We never bought “new” cars since it was always the most “cost effective” path to buy second or third hand high mileage Japanese vehicles.

I’m in my early/mid 20’s and still living at home with my parents. I’m mature and frugal with my money and make sure to never waste it. Ironically I do understand that money sitting in my bank is essentially being eaten away by inflation. I have a (key-word) very modest income as a substitute and tutor at some local schools.

My goal to post here is to learn and seek advice and gather information about a way to secure my future and also stabilize myself financially. I want to someday be able to afford maybe a second hand or third hand used supercar, just to see what it’s like. I’ve never been inside anything that’s even remotely considered “exotic” or “rare” but it’s just something that I have always had a passion for. Heck, maybe in a year or two I can rent a fast toy for an afternoon or a racetrack just to hear that engine and feel that acceleration.

I understand that investing money is a great way to accumulate wealth. I’ve read “Rich Dad / Poor Dad” and “The Richest Man in Babylon” and have learned a lot. I currently have a small ROTH IRA that I began contributing to a few years ago and a modest 401k from my current day-job employer. I understand this a very small first step in an extremely long journey to financial success and independence. The question really becomes though, how else to build wealth and project myself forward while also remaining realistic? I make a decent amount of money to afford my current lifestyle while living at home, but what about someday owning my own property or being able to provide for a family? I know my parents are financially stable, but I want to be able to someday move out and actually be a “man” and not a “boy” in the financial world.

Question & Summary:

What is a safe and secure way to begin investing into the stock market for long-term gains? Let’s say ten years out at the least. I’ve been reading that the “S&P500” is a great way to start investing long-term and have researched information through Vanguard on it. But are there ways to invest that are even more secure or just as secure but with higher gains?

If you had $50k in cash how would you invest it today so that within four years you could have passive income of around $40k+ a year, respectfully (going into account inflation and cost of living and such)? Rental properties? Crash courses to learn a valuable trade or skill?

Any advice on not following the “path” that everyone takes (college, day job, nine to five, etc) but going astray? Full disclosure: I have a 4-year degree but it’s in liberal arts. I fell for the scam. Thankfully I have paid off my student loans recently. I feel that I don’t have many “skills” outside of knowing math well enough for teaching/tutoring and very small experience running a small business and interacting with people face to face or over the phone (similar to pitching a basic sale or telemarketing).

Please let me know what you think, and again, thank you so much everyone!

(also yes, I am posting this on multiple supercar forums for brands that I have a passion for)
 

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Many of us got here in different ways.

1. Further your education and get a better paying job. Not many short cuts now.

2. Start a business that becomes successful. You got to take a chance sometime or you go back to #1

3. Today’s economy is worse than a crap shoot. With trade wars and Political instability. For 50k. Id just put it somewhere safe.

4. High risk and easy to say with someone else’s money. Gamble it in the stock market or Vegas. But my opinion see #3

5. Take care of a place to live FIRST as you never know how long the income will last. Debatable depending on which city you live home price vs renting.

Ignore social media as it makes life look too easy LOL
 

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I figured to post here because statistically those who drive these kinds of cars are normally well-educated and understand how the world around them works.
I’m a huge car enthusiast and definitely would love to make a long childhood dream come true, but at the same time, I also understand the importance of financial security for the future.
I'm a Software Engineer in Silicon Valley, having moved to the US from the UK at the end of 2007. I have degrees in Engineering and Computing Science from the University of Oxford. Whilst I could spend more on cars, I hate debt and seek good value, so didn't buy my first 200mph car until I was 50 (bought a 928GTS before that though). I also got very lucky in my timing of buying a house here. My share investments have been more mixed ..

The basic ways to afford something more is to earn more, prioritise it (i.e. be frugal in other areas), and to buy something that needs work (and have the skills / contacts to do cheaply). Given the cost of McLaren parts, and your declared mechanics knowledge, I'd go for the first two.

In the current market, mileage really kills prices. A 12C can be had at ¬$70k with "high" (40k+) mileage. Obviously, you need to make sure that it's been well maintained, and budget for the odd expensive repair (or an extended service contract).

Ever since I was a kid I’ve always loved cars. I don’t really know how to work on them very well (would have to watch a step-by-step video even for a basic oil change or brake job) but fun sports cars have always stirred my soul ever since I was young.
Understanding how cars work has been an important safety, and money saving, measure for me, when I couldn't afford reliable cars.

I have a (key-word) very modest income as a substitute and tutor at some local schools.
If you're not already, private tutoring could help boost your income. You may be able to develop that into a company with multiple tutors, so you make some money from each one.

I currently have a small ROTH IRA that I began contributing to a few years ago and a modest 401k from my current day-job employer.
Long-term investment is important, and something that I would make sure is well taken care of before spending on toys.

What is a safe and secure way to begin investing into the stock market for long-term gains?
Investing for the long term, spreading risk, cost averaging, and not having to get money out at a specific time.

If you had $50k in cash how would you invest it today so that within four years you could have passive income of around $40k+ a year
That's not realistic. It's simply not possible to guarantee that sort of return - you would have to take a lot of risk.

Good luck - I hope that you can realise your dream one day. Cars are getting faster - some very average new cars can embarrass super cars from 20-30 years ago. Are you after styling, performance, or both?
 

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If you are not an investing pro, buy the lowest cost index fund and dont look at it.


This is a good one with basically no cost. Most other funds just rob you for BS reasons.

If you're young, sound like you are, maximize a Roth 401k. If you have an employer that matches your 401k ALWAYS MAX it out. Otherwise, just buy that fund in your 401k or IRA. Generally the 401k is little better than IRA because there are less penalties if you do not want to early withdraw, less forced distributions.

Any money you put in your retirement accounts you should consider thrown away. Non existant. The penalties for removing it are such that the money you put there is NOT for a rainy day but for when you get to retirement age. Also, for the market to pan out for you, you need long term horizins. Money you put in the stock market, lets say outside of a retirement account (which you should do too) you should consider it money you know you will not need to touch for at least 5 years. Over the course of 5 years in general, your money will even out. It almost certainly will in 10 years. And that's on the low side, on the high side, you will do much better than having it in a CD making 2% by quite a lot.

This is not financial advice. You should do your own research. But the above is basic level stuff. I think Buffet did a bet on many hedge funds, and over time, just buying the index (particularly with no fees) beats out most of the hedge funds.


As for ecucation, what where you thinking of doing? If you are a techy, a lot of companies will hire you without formal education if you can code.

I think an education can be gotten for a bargain if you know what you are doing and are not subject to peer idiot pressure. Go to a CHEAP AS HECK community college. A lot of smart people I know do this. First 2 years they take all the hardest classes and then transfer into a great school. Particularly for medicine this has the benefit of wiping out your GPA when you apply elsewhere as your 4 year college GPA will be based only on the last 2 years of school, which are usually easier. Secondly, for many careers undergrad is useless. Unless you get into harvard/yale, it just doesnt matter. So even when you transfer, you can pick the cheapest, give me the certificate, school possible, and maximize your odds for graduate school. There are a lot of cheap as heck 4 year community colleges. It's only the last degree you get counts the most, masters/PhD.

If you do the above, maximizing your GPA all along the way, you'd be shocked at how cheap school can be in the US.

But again, depends on what your thoughts are. The degree is a great backup plan and nothing stops you from starting different little businesses along the way.

Lastly, spending money on cars early in your life, beyond transportation, is nuts. Any exotics you buy should be done with FU money. Anything less is fiscally nuts because the vast vast majority of them drop in value. What does that mean? From a lot of discussions of folks here, it should be 1% or less of your net worth on the conservative side. If it's around 10% of your net worth, youre being on the "stretching it" side, and anything above that is likely fiscally irresponsible.
 
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