Ways to Get $50K to Invest
If you want to reap the rewards of being a capital investor, you’re going to have to put the time and effort into earning and saving for your initial investment. A minimum investment of $50,000 will go far. To many people, this number sounds large – but it’s possible to achieve! With dedication and a little bit of know-how, you can have 50 grand to invest in just one year. Here’s how.
1. Roll Over an Old Retirement Account to a Solo 401k
If you have an old 401k or 403b with a former employer and you are now self-employed, this may be the perfect time to roll over the funds to a solo 401k. This type of account is probably your best option for saving for retirement. One of their biggest advantages is they usually allow you to contribute more each year than other types of retirement accounts. Because you’re self-employed, you can contribute to the account as both an employer and an employee. It’s the best way to maximize your retirement savings!
The best way to go about a solo 401k rollover is to complete a direct rollover. This means that you allow your former employer’s administrator to write a check to your new account custodian for benefit of your name. As long as you go about the rollover properly, you won’t have to worry about tax liabilities. We like Checkbook IRA and use them for one of our solo 401k’s.
After you’ve successfully completed your rollover and opened your solo 401k, you can use the funds in the account as capital for an investment. You have flexible options, but investing through EPIC Impact Investors in non-owner occupied renovation projects is one of the most reliable investments you can make.
Becoming a real estate investor with a solo 401k is especially beneficial because the profits are tax-deferred until the time of distribution. For example, if you purchase real estate for $150,000 and are able to sell it for $225,000, that $75,000 profit is tax-free! Any repairs, improvements, expenses, or even taxes related to the property you’ve invested in can even be covered by the retirement funds.
2. Get an Investment Partner
Doing just about anything is always easier when you’re doing it with someone else. The same is true when it comes to building a chunk of change. Find someone you know you can trust and ask them to be your investment partner. You can be equal investors, each investing $25,000. This lowers the barrier of entry for investments, making it perfect if you can’t quite scrape together 50k but you can manage 25k.
You’ll reach 50k in no time as you and your partner work toward building a joint investment. You can keep each other accountable with your spending and saving habits over the course of a year. Once you both have the initial 50k, consider becoming a capital investor with EPIC Impact Investors and watch that 50k turn into 50k each!
3. Find a Part-Time Job
Although you can always find a part-time job to supplement your income, right now may be the best time to do it. If COVID has turned your full-time job into a work-from-home position, you may have greater flexibility in your schedule for an additional revenue stream. Find a part-time job or a side-hustle where you can bring in about $1000 a week. Your main source of income will still go toward paying your bills, but your second stream of income will automatically go toward building that 50k investment.
If you have a skill like writing, editing, or graphic design, this might also be the perfect time for you to build your own side hustle! People are willing to pay good money for these services. The expenses for these types of freelancing business is also minimal. As long as you have a laptop and an internet connection, you really have all you need to start freelancing.
It’s easier than ever to become a successful freelancer because you aren’t limited to finding customers via word of mouth. Social media expands your potential for customers, and you can also get a boost from sites like Upwork or Fiverr. Because you’ll be your own boss, you get to build your schedule, which makes having a second job less stressful.
4. Shift Your Mindset
When you think about $50,000, it’s obviously a large chunk of money. But if you break it down into smaller segments, it can feel less daunting. For example, if you want to save 50k in one year, you will need to make and save $961 each week. This can feel a little more manageable because you know exactly how much money you should make every week to build your capital investment.
Maybe $961 a week isn’t a practical number for you to earn extra each week. If so, that’s okay! Figure out a number that is practical for you and see how long it will take for you to get that money. It might be possible in a year, or it might take 18 months or even two years. The timeline doesn’t necessarily matter. What does matter is that you have a clear goal in mind and a plan for how to get there.
Discipline and consistency are the true hallmarks of great real estate investors! As long as you have these two characteristics, you are well on your way to becoming successful.
Make Your Investment with EPIC Impact Investors
Choose one or even a couple of these items and watch your money grow! Once you have at least $50,000 for your capital investment, you can watch your money grow even more in the long-run.
EPIC Impact Investors can help you become a capital investor! We have the unique purpose of empowering under-served communities of color with our investments. Not only will you see a return on your money but you will get the added bonus of knowing your money is doing great things for people who need it. For more information, get in touch today!