Exciting Opportunity & Massive Risks - Opinions please

Sweetrevenge

GazNicki wrote: »

I would seriously consider what it is you want to do in terms of 'gifting' to the kids.

It is difficult to advise as nobody knows how old the kids are. If they are 4 then that it drastically different to them being 24.

You need to think about what can you do that will benefit you in the long run. It seems like the only gamble you have right now is the new business. That's a risk you are going to take one way or the other. You have several options when it comes to business that can help to protect you - such as a Limited Company that would limit the disadvantages to you should the business fail.

That said, if you are looking at spending all the money one way or the other into a business, then you are risking the lot.

Buying a house is a good investment for the future. Yes, there are pitfalls like the house market could collapse and you are left in negative equity, or the equity of the house needs to go into paying medical bills, etc. But there are benefits too. If none of these things happen, the house will be worth more when you do pass and the kids will be much better off for it.

Likewise, the business is a 50/50 gamble. If it fails, you lose all your money. If you buy a house outright and then take the equity back out to invest in the business, you risk losing the house provided you can't pay the mortgage.

There are so many factors that would affect this, that I doubt you can truly get solid advice from here without divulging a lot of information. Really, you may just get opinions which are for the most part not worth very much,

Thanks for this very thoughtful and considered reply. I'm glad I posted because listening to the opinions of those who've replied has helped me to reach decisions.

The kids by the way are young adults and - with some guidance as to how to protect and grow their money - are capable of making sensible decisions about what to use it for.

It was also interesting to see if I had considered all the options and knew enough about them, so thanks again for your reply.

Sweet

Sweetrevenge

Arleen wrote: »

I will say one thing. If this is your first business, and you don't have another 150k to sink into the business you want to start, don't drop the 150k in the first place. Also, the idea that it will profit 50k in the first year on 150k investment is insane. It's not 50/50 gamble, its 90%+ chance that you will never see your money back, with extra kicker of going deep into debts to then try to keep it afloat.

If you want to run your own business, run it on a minimal budget first, see if it works. Almost every business can be run on a minimal budget, so think carefully and figure out how to do it. If you can't, then put the money into a mutual fund and let professionals handle it.

Thanks Arleen, agree completely.