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what to do with 500k savings

post #1 of 14
Thread Starter 

the money is all in investment.. I'm 20 years old, dropped out of the university I was at and transferred to a specialty school for the fashion industry.. realized after I transferred that I hate the fashion industry and the kids at the school, and am kicking myself over leaving my old school as all of my friends are already in their third year and interning at investment banks.. I could transfer back but at the same time don't want to pay $25,000 a semester out of pocket and basically start all over (I only did one semester there). I suppose the investment would be worth it if I knew I was going to get stellar grades and go to a great grad school, but that's all uncertain.

 

If I stay in fashion school (which is part of the SUNY system) I get in-state tuition and the cost is basically insignificant ($2,700 a semester).. I live in NYC and love being here, and am definitely capitalizing on the great opportunity to network.. I'm paying rent by working at a restaurant, and am only withdrawing a marginal amount from my trust fund for food and tuition. The money that I have in investment may mature or diminish depending on the market, amongst other variables.. you guys know the deal.

 

I guess I have an important decision:

- stay in school for fashion and then try to start my own business (think something like Leffot or Epaulet) or try to get an internship from connections I've made and see where that takes me.. 

or

- transfer back to my original university and go for a more traditional route by studying law, business, or something along those lines.. I guess the pro would be that ideally it would pay off in the long run (I'd hope), but I'd seriously diminish the money that I do have and lose out on opportunity cost, as that money could be making more money in investment.

 

Do you guys have any advice?

post #2 of 14
Quote:
Originally Posted by newyorker2 View Post

the money is all in investment.. I'm 20 years old, dropped out of the university I was at and transferred to a specialty school for the fashion industry.. realized after I transferred that I hate the fashion industry and the kids at the school, and am kicking myself over leaving my old school as all of my friends are already in their third year and interning at investment banks.. I could transfer back but at the same time don't want to pay $25,000 a semester out of pocket and basically start all over (I only did one semester there). I suppose the investment would be worth it if I knew I was going to get stellar grades and go to a great grad school, but that's all uncertain.

If I stay in fashion school (which is part of the SUNY system) I get in-state tuition and the cost is basically insignificant ($2,700 a semester).. I live in NYC and love being here, and am definitely capitalizing on the great opportunity to network.. I'm paying rent by working at a restaurant, and am only withdrawing a marginal amount from my trust fund for food and tuition. The money that I have in investment may mature or diminish depending on the market, amongst other variables.. you guys know the deal.

I guess I have an important decision:
- stay in school for fashion and then try to start my own business (think something like Leffot or Epaulet) or try to get an internship from connections I've made and see where that takes me.. 
or
- transfer back to my original university and go for a more traditional route by studying law, business, or something along those lines.. I guess the pro would be that ideally it would pay off in the long run (I'd hope), but I'd seriously diminish the money that I do have and lose out on opportunity cost, as that money could be making more money in investment.

Do you guys have any advice?


Don't know what the answer is or what advice to give you but I would say that the fashion school/business does not sound like something you want to do.
post #3 of 14
why are you asking strangers what to do with $500,000????????????????
post #4 of 14
Thread Starter 
Quote:
Originally Posted by edmorel View Post


Don't know what the answer is or what advice to give you but I would say that the fashion school/business does not sound like something you want to do.

 

That is true, but I figured that having your own boutique would be more distant from the actual industry itself..  I mean, you could own a record store but would just be considered a small business owner rather than working in the music industry.. I guess. 

 

and maybe I jumped the gun—The kids at the school are fine, they just don't seem very business oriented. A lot of people are involved in the creative side of the industry and don't think/or even care about making money.. I would think about taking a risk and starting up a label with a few kids (think rag & bone), but I'm more interested in classic men's tailoring (brioni, kiton) and a lot of kids at the school like contemporary and very expressionistic designers like rick owens and givenchy.

 

Quote:
Originally Posted by hoozah View Post

why are you asking strangers what to do with $500,000????????????????

 

It seems that there are a lot of successful people on this site who have more life (school/business) experience than I do.. While I won't go and do what the first person tells me, it would certainly help to consider other opinions, rather than just solely following my own advice at such a young age. 


Edited by newyorker2 - 9/14/12 at 7:47pm
post #5 of 14
Invest in pharma-grade coke , step on it 8 times , repeat until Crystal and bitches don't do it for you anymore. Retire.
post #6 of 14
Sounds like the question is what to do with your life, not what to do with your money...
post #7 of 14

Go back to school and study law if that's what you want to do. By the time you are through you will basically have no money left in your fund—but don't let that discourage you—at least you won't have years of paying back student loans to look forward to.... You will make 50k your first couple of years and hopefully by the time you are 45 will have saved up all 500k of your money back, and be making 250k/year on top of that.... or you can keep working at restaurants, living off the minimum, not withdrawing from your trust at all, using balls to the walls investment tactics and have millions by the time you are 45..... assuming you don't lose all of your money in the process...

post #8 of 14
Quote:
Originally Posted by newyorker2 View Post

the money is all in investment.. I'm 20 years old, dropped out of the university I was at and transferred to a specialty school for the fashion industry.. realized after I transferred that I hate the fashion industry and the kids at the school, and am kicking myself over leaving my old school as all of my friends are already in their third year and interning at investment banks.. I could transfer back but at the same time don't want to pay $25,000 a semester out of pocket and basically start all over (I only did one semester there). I suppose the investment would be worth it if I knew I was going to get stellar grades and go to a great grad school, but that's all uncertain.

 

If I stay in fashion school (which is part of the SUNY system) I get in-state tuition and the cost is basically insignificant ($2,700 a semester).. I live in NYC and love being here, and am definitely capitalizing on the great opportunity to network.. I'm paying rent by working at a restaurant, and am only withdrawing a marginal amount from my trust fund for food and tuition. The money that I have in investment may mature or diminish depending on the market, amongst other variables.. you guys know the deal.

 

I guess I have an important decision:

- stay in school for fashion and then try to start my own business (think something like Leffot or Epaulet) or try to get an internship from connections I've made and see where that takes me.. 

or

- transfer back to my original university and go for a more traditional route by studying law, business, or something along those lines.. I guess the pro would be that ideally it would pay off in the long run (I'd hope), but I'd seriously diminish the money that I do have and lose out on opportunity cost, as that money could be making more money in investment.

 

Do you guys have any advice?


How do you have 500k in savings at 20?

post #9 of 14
Quote:
Originally Posted by CushyCouture View Post


How do you have 500k in savings at 20?

He said it's a trust fund.
post #10 of 14
Why not just transfer to a cheaper school?
post #11 of 14
Just leave the management to your trustee? That (and keeping you off crack cocaine) is what she's paid for.

A few more thoughts:
a) If you go to a school that gives need-based aid, blind trusts usually aren't counted in their calculations. So depending on your specific circumstances (mostly parental income), transferring to a school that provides need-based aid may be cheaper than you think.
b) Unless you become a genius entrepreneur, going to a good college acts as an important status good. It conveys important social benefits on top of monetary benefits (also hopefully intellectual benefits, but no promises).
post #12 of 14
post #13 of 14
Quote:
Originally Posted by mcbrown View Post

Sounds like the question is what to do with your life, not what to do with your money...

+1

Some times, freedom is a difficult thing to manage.
post #14 of 14
Quote:
Originally Posted by suited View Post

LOL - "Is this the 5pm crack giveaway?!"  I love Chapelle's show.

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