Join our investing community

10k to 60k

Discussion in 'Investing Strategies' started by honestjon, 27th Jan, 2011.

  1. honestjon

    honestjon New Member

    Joined:
    27th Jan, 2011
    Posts:
    2
    Location:
    sydney, nsw
    Hi Guys,

    I've never invested before.

    How do I turn my 10k into 60k..

    What timeframes? I'm open to being fairly risky.

    And yes I've read rich dad poor dad.. investing books etc.. also dabbled in FX but
    thats speculation not investment as such..
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi honestjon

    It will take 19 years to make $61,159 if your annual return is 10%. Remember, inflation will have a large effect over this time period.

    Another thought, is to get a franchise with your $10,000. My friend got into Jim's Cleaning and made it work.



    Johny. :)
     
  3. honestjon

    honestjon New Member

    Joined:
    27th Jan, 2011
    Posts:
    2
    Location:
    sydney, nsw
    The returns on small franchises like jims seem negligible, might as well just start up a micro business. If I had more startup funds then a franchise might make more sense.

    19 years is not really an acceptable timescale for me. 5 years maybe. I know risk will have to increase proportionate to return. Maybe just put it all on black? :D
     
  4. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Mate! You need a guaranteed 43.1% return for 5 years. Tell me where I can get that and I'll put my money down. :D:D



    Johny.
     
  5. Waimate01

    Waimate01 Well-Known Member

    Joined:
    26th May, 2008
    Posts:
    157
    Location:
    Sydney
    Yep, put it all on black :)

    Of course, that'll only turn your 10k into 20k, so you'll need to get your colour choice absolutely correct two and a half times in a row in order to get to 60k. You stand about a 1-in-8 chance.

    But really, it is worth thinking about risk and your appetite for it. How would you feel if you lost your 10k. If the answer is 'philosophical', then go for it with some high risk/return investments. But if the answer is 'remorseful', then maybe ameliorate the risk a tad.

    I used to have a far higher appetite for risk until a couple of things went the wrong way, then 'risk' changed from a somewhat abstract concept into something more visceral.