I have $1,000,000. I want to have a stable income each month. Where should I invest this money? Should I buy a business or invest it in some start-up?

As a way to have new content and drive traffic to this site I have taken to the site Quora to answer questions. I will repost some of my answers here so you all can learn from their experiences.

Ask yourself where are you on this scale:

active investor<---angle investor ----------------------index funds---> passive investor

What are your goals?

If you want to sit by the beach, fish, go camping, spend time with the family then you are leaning more towards the index side of things, If you don't mind working then running a real estate company isn't a bad way to go.

If I where in your situation, I'd invest 800,000 here  Vanguard Total Stock Market Index Fund Admiral Shares

I would take the other 200,000 and create a hard money lending firm for real estate investors looking to invest in single family homes.

using the 4% rule your investment of 800,000 should give you about 32,000 a year for spending money. While the hard money lender business would give you a solid return ( slower) which could fund vacations, college tuition's or the like.

Where are you on the active scale vs the passive scale?

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