20K bankroll for poker and investing
 

Hello, I am currently 17 years old and have built up 20K from playing live poker and online poker in the past 7 months, I only plan on playing 20, 30 and 50 dollar SNGS Online while playing steady 4/8 limit and 2/5 no limit in the indian casinos. I was wondering, how i should allocate my 20,000 to maximize return. Should I save up more and open a restaurant? Should I invest into an index fun I.E Vanguard, Should i invest into the stock market...if so how much should I invest, how much should i keep for poker. Also, Should I just save up alot of money and take on Day Trading. Any comments iwll be appreciated

Re: 20K bankroll for poker and investing
 

What indian casinos let you play when you're 17?

Re: 20K bankroll for poker and investing
 

I highly recommend either opening a restaurant or day trading. If you don't do that for whatever reason, either invest into an index fund or invest into the stock market, but not both.

Re: 20K bankroll for poker and investing
 

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If you don't do that for whatever reason, either invest into an index fund or invest into the stock market, but not both.

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Index funds are part of the stock market.

Re: 20K bankroll for poker and investing
 

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I highly recommend either opening a OVEN and BURNING ALL YOUR CASH AT ONCE

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FYP.

95% of daytraders go broke within a year. The record of restaurant ownership is only slightly better.

Re: 20K bankroll for poker and investing
 

On average, it takes five years to see a profit on a restaurant.

Forget day trading, way to volatile.

Peel some off and do some index funds, perhaps loan shark for a while (lol)

Re: 20K bankroll for poker and investing
 

I really wish I could learn how to make money playing poker. I have tried, but with no success. Maybe I am not trying hard enough.

Anyway, the only ways i have found to make money are working, investing in real estate, and investing in stocks.

Some day, when I have time, I will go back to studying and playing poker. It would be great fun to earn a supplemental income with a fun hobby.

Re: 20K bankroll for poker and investing
 

They say that long term a successful index fund can return on the order of 10% a year. And the returns won't be taxed until you sell.

Real estate apprecation depends on the location and the amount of leverage you pay, how much you put down etc. But real estate returns can be tremendous and are tax free or tax deferred, largely, until you sell.

Poker earnings, assuming the govt ever finds out about them are taxable, in theory.

I guess you need to compare returns. But also diversify. If you can make a lot higher return playing poker, then play poker until your bankroll is so large that the extra money is really not needed for playing poker.

Then when you invest the EXCESS MONEY, the money will be working for you and making money while you sleep and eat and play poker.

The neatest thing about investing is that it's like owning a slave. A $50,000 downpayment on a home or a $50,000 investment in a good index fund or good stock, can be like a servant who works for you 24 hours a day, but doesn'tcomplaint, doesn't get sick, doesn't get tired, and keeps bringing money to you everything he earns.

Let's say you can make 10% a year on the stock market.
And let's say you invest 100K in stocks. Every year, without you lifting a finger, the money brings in 10K.
Then the 10K brings in 1K, then the 1K brings in etc. etc. Compounded interest. Reinvested dividends and interest. Wowie.

Yowie.

Re: 20K bankroll for poker and investing
 

[ QUOTE ]
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If you don't do that for whatever reason, either invest into an index fund or invest into the stock market, but not both.

[/ QUOTE ]

Index funds are part of the stock market.

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Good God, how thick do I have to lay it on for you people?

And if I remember correctly what my friend from the CIA told me, over 90% of restaurants fail within two years. So I guess you should do that instead of day trading.

Re: 20K bankroll for poker and investing
 

First of all, I would forget restaurants or daytrading. Your "bankroll" even at 20k is not enough. For daytrading in particular, you won't even be able to beat the rake (commission). Without any solid experience/plan in the matter, you'll lose all of it anyway, so no bankroll will be big enough and the point is moot.

Second of all, you need to establish how much of that money will be needed for your poker bankroll, and that depends on a few things: are you going to "withdraw" from your bankroll for anything, what expenses do you have, what is your expected return, what is your risk tolerance...etc. Judging by the limit you play, you'll probably want your bankroll between 5-10k.

Now what to do with the rest depends on your goals. How long do you want that money to be invested? Are you going to need it in the near future? Do you need it to be fairly liquid? How much time are you willing to spend researching your investments?