What would you do with $1M for your biz?
jasonleow • 4 May 2024 •
You’ve got $1,000,000 to spend on your business. How do you spend it?
The best answer for those just starting out:
Don’t spend a dime on your business.
Invest it all in ETFs/S&P500. Use investment gains as cash runway to support your indie hacking journey.
Because assuming an average return of 10%, you’ll get around $100k per year ROI. If you’re solo, live in a low cost location, and young, no family, that’s more than enough for you to survive on indefinitely, while you build and ship new products till one of it replaces the investment gains.
Then spend the $1M on the business.
What do you think of this approach? Smart, or dumb?
Comments
Buy $1M worth of lottery tickets 🤣 Actually, investing in the stock market has allowed me to grow a nice sum, albeit in retirement accounts where most of the money is locked away until I become “of age.”
@haideralmosawi Yeah rich dad mindset haha
@therealbrandonwilson Nice. What’s your portfolio split like in terms of safe vs risky investments?
@jasonleow I rely on my fiduciary to handle all that. Considering my age, I know we discussed that my portfolio has a bit higher risk tolerance.
My father-in-law asked us this question in our family gathering. Everyone got caught up on how much money they’d give to family members and what they’d do with the rest of the money. I had the most boring answer of investing most of the money (some in high-risk ventures and others low-risk) to ensure ongoing income from that initial capital.
So I definitely agree with your line of thinking.