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Best way to invest $25K?


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#1 MDC

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Posted 29 August 2009 - 03:31 PM

So I'm getting a small windfall of $50 grand by the end of the year. About half is going to pay off some debt and go into upgrading the house - we want to move within the next couple of years. That leaves $25K and I'd like to invest it in something low risk that will at least appreciate faster than the rate of inflation. We really don't need the money right now so I can live w/out touching it for a few years.

Any ideas on the best way to invest that money in this economy?
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#2 kilroy69

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Posted 29 August 2009 - 03:47 PM

hookers and coke?
Its still not a hummingbird.

#3 MDC

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Posted 29 August 2009 - 03:52 PM

hookers and coke?


I'll check with my wife.
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#4 heavy-set

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Posted 29 August 2009 - 04:01 PM

1.make yourself revolving debt free
2.start a 6 month of expenses emergency fund
3.figure out what percent of your income you need to save for retirement, and get there.

if you still have leftovers, id launder it this way. put more into your retirement, lowering your net pay but fill in the gaps with the additional monies.

:overhead:

#5 GettnHuge

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Posted 29 August 2009 - 04:13 PM

get them gold spinner rims you've been eyeing
MedStudent: Sorry to disapoint you but i don't have a pair.

nikki2200: But STAY ON TOPIC. This thread is about shooting water out of your ass

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#6 Me_2006

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Posted 29 August 2009 - 04:22 PM

25k worth of powerball tickets.

#7 listen2me 23

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Posted 29 August 2009 - 04:22 PM

Fish Tank

#8 kilroy69

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Posted 29 August 2009 - 04:25 PM

Fish Tank

With sharks that have friggin laser beams attached to their heads.
Its still not a hummingbird.

#9 NorthernVike

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Posted 29 August 2009 - 05:10 PM

Who'd you steal 50k from?

Being an ass hole is all part of my manly essence

 

 



You guys have no focking clue what happened so you really should just shut it..

 


#10 Giants Fan

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Posted 29 August 2009 - 05:26 PM

With sharks that have friggin laser beams attached to their heads.



You'd be surprised. You could EASILY spend 25 grand on a 100 gallon plus reef tank.
http://www.RotoTeams.com

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#11 peenie

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Posted 29 August 2009 - 06:15 PM

just wanted to say congratulations on becoming debt free! yay! i hope to see that day.
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#12 MDC

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Posted 29 August 2009 - 06:36 PM

just wanted to say congratulations on becoming debt free! yay! i hope to see that day.


Thanks, I appreciate that. Just eliminating all debt is going to save us hundreds per month. And this money is going to help us fix the house and make a decent profit. I feel pretty lucky.
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#13 Mile High Drunk

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Posted 29 August 2009 - 06:37 PM

Lots of good advice in this thread.
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#14 CurleyQ

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Posted 30 August 2009 - 06:29 AM

MDC,

Unfortunately there is not much out there. CD's are yielding 1.5%-2.5% for a 6 mo to 1 yr term. If you can find one between 2%-2.5%, at least that solves your risk issue. You can get a longer term with a little better rate. What I might do is "ladder" your CD's. What I mean is maybe invest $10,000 in a 1 year CD, and $10,000 in a 2 year CD and maybe $5,000 in a 3 year CD. That way, you have money coming due each year for either emergencies or better yielding investments. As far as keeping up with inflation, it is not great. Sometimes some smaller local regional banks have a better deal. Nothing wrong with an internet bank as long as they have FDIC insurance. The problem is it is a little uncomfortable for some people to deal with these banks over the phone or through emails for an investment I know people that do it and it seems fine. I did it once 3 years ago with Countrywide at a local office they had by my house. Technically it was an "Internet Bank". I was contacted near the end of the term, told them I did not want to roll over the investments, and the money was returned and I invested at the next best rate I could find. Everything was fine, even with Countrywide's issues.

Do you guys have IRAs (Roth or regular)? If not starting one is not a bad idea even if you have 401K's or work pensions. The problem is that these are not temporary investments. If you want the money down the road for a new house or something then do not do this.

If this $25,000 is discretionary savings I would tell you to put 1/2 in a CD and take 1/2 and start dollar cost averaging (over the next 12 months) in a couple mutual funds at Vanguard (low expenses). Again, if you know this is money to be spent in the near term for something than the stock market is out of the question.

#15 frank

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Posted 30 August 2009 - 07:46 AM

Get a sociology degree.

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#16 MDC

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Posted 30 August 2009 - 08:22 AM

CurleyQ - THANKS. That is exactly the type of advice I was looking for.
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#17 sudswilson

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Posted 30 August 2009 - 10:22 AM

hirez a markatingg aggent to pimp that sweet azz literary careers of yourz
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#18 Recliner Pilot

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Posted 30 August 2009 - 10:33 AM

Upgrade the coffee pot at the office. It will lower the stress level at the job.

Obama really inherited a mess for his second term. 


#19 phillybear

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Posted 30 August 2009 - 10:37 AM

First of all, I sincerely hope that the reason you are getting the money is due to inheritance from somebody that was close to you and that you cared for greatly died in a horrifically painful, lingering way you focking jackass.

Might I suggest investing in tents for your backyard, so that if you manage to kidnapp a real, living broad, she will have a place to stay. Oh, silly me. I plum near forgot that the rundown Section 8 slums of South Philadelphia do not have backyards. Well, I guess it's back to caressing 'ole Inflatable Ina.

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#20 Birdseed

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Posted 30 August 2009 - 10:56 AM

:doh:

What Philly said.

#21 MDC

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Posted 30 August 2009 - 11:28 AM

First of all, I sincerely hope that the reason you are getting the money is due to inheritance from somebody that was close to you and that you cared for greatly died in a horrifically painful, lingering way you focking jackass.

Might I suggest investing in tents for your backyard, so that if you manage to kidnapp a real, living broad, she will have a place to stay. Oh, silly me. I plum near forgot that the rundown Section 8 slums of South Philadelphia do not have backyards. Well, I guess it's back to caressing 'ole Inflatable Ina.


It is an inheritance, but the relative is still alive and well - he's "gifting" his estate to relatives to avoid paying higher taxes on it. :thumbsup:
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#22 redtodd

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Posted 30 August 2009 - 11:32 AM

Aren't you a bleeding heart liberal who feels that we all need to take care of the less fortunate?

Why don't you put your money where your mouth is and donate a large chunk of that to a charity?
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#23 MDC

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Posted 30 August 2009 - 11:34 AM

[quote name='redtodd' date='Aug 30 2009, 12:32 PM' post='4035848']
Aren't you a bleeding heart liberal who feels that we all need to take care of the less fortunate? [quote]

No.
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#24 Recliner Pilot

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Posted 30 August 2009 - 12:03 PM

Aren't you a bleeding heart liberal who feels that we all need to take care of the less fortunate?

Why don't you put your money where your mouth is and donate a large chunk of that to a charity?


Libs are only generous with other people's money, not thier own.

HTH

Obama really inherited a mess for his second term. 


#25 heavy-set

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Posted 30 August 2009 - 03:06 PM

Get a sociology degree.

i just peed myself

#26 Ray Lewis's Limo Driver

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Posted 30 August 2009 - 08:53 PM

1) Ask strike
2) do the opposite...

:pointstosky:

The economy is running about as good as FFToday.com on a Sunday just before 1pm during football season.

 


#27 Drizzay

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Posted 30 August 2009 - 09:32 PM

Wu-Tang Financial
Tell your story walkin'!

Rev 5:5

#28 Geo-Jay

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Posted 31 August 2009 - 09:10 AM

MDC,

Unfortunately there is not much out there. CD's are yielding 1.5%-2.5% for a 6 mo to 1 yr term. If you can find one between 2%-2.5%, at least that solves your risk issue. You can get a longer term with a little better rate. What I might do is "ladder" your CD's. What I mean is maybe invest $10,000 in a 1 year CD, and $10,000 in a 2 year CD and maybe $5,000 in a 3 year CD. That way, you have money coming due each year for either emergencies or better yielding investments. As far as keeping up with inflation, it is not great. Sometimes some smaller local regional banks have a better deal. Nothing wrong with an internet bank as long as they have FDIC insurance. The problem is it is a little uncomfortable for some people to deal with these banks over the phone or through emails for an investment I know people that do it and it seems fine. I did it once 3 years ago with Countrywide at a local office they had by my house. Technically it was an "Internet Bank". I was contacted near the end of the term, told them I did not want to roll over the investments, and the money was returned and I invested at the next best rate I could find. Everything was fine, even with Countrywide's issues.

Do you guys have IRAs (Roth or regular)? If not starting one is not a bad idea even if you have 401K's or work pensions. The problem is that these are not temporary investments. If you want the money down the road for a new house or something then do not do this.

If this $25,000 is discretionary savings I would tell you to put 1/2 in a CD and take 1/2 and start dollar cost averaging (over the next 12 months) in a couple mutual funds at Vanguard (low expenses). Again, if you know this is money to be spent in the near term for something than the stock market is out of the question.



#29 Geo-Jay

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Posted 31 August 2009 - 09:21 AM

Contact a Financial Advisor. Tell him/her your goals and objectives for the money and have them put a plan of action in place. With cd rates being where thay are a money market account will be your best option until your plan has been implemented.

Lastly, Vanguard is a low cost mutual fund family, but low cost doesn't always mean more money in your pocket. I would have to say; you came to an internet chat board looking for advise so you aren't qualified to invest your own money with a no load/no advise mutual fun family. Again, contact a professional you know or your friends know and follow their plan.


Lastly again, ROTH IRA's are your friend (income guidelines apply). Think about creating a pocket of money that once you begin withdrawing it is Federal tax-free. Social security, pensions and 401k's are all taxable so a tax-free wod of loot is a good arrow in your quiver in retirement.

I will answer other questions....Just ask. :dunno:

#30 Me_2006

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Posted 31 August 2009 - 11:25 AM

Wu-Tang Financial

Diversify ya bonds!

#31 Me_2006

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Posted 31 August 2009 - 11:27 AM

You can buy a lot of dofus with 50k.

#32 Greedo

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Posted 31 August 2009 - 02:21 PM

Q is right on w/his advice. I'm not a big fan of anything that costs fees - funds don't give 2 craps about you, and too many brokers worry about fee income, not what the best investment for YOUR goal is. You'd really have to comfortable with the individual to let them give you investment advice.

Libs are only generous with other people's money, not thier own.

HTH


Link to charts showing percentage of net income donated to charity crossed with political affiliation?

#33 itsbigmoni

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Posted 31 August 2009 - 05:17 PM

Lastly again, ROTH IRA's are your friend (income guidelines apply). Think about creating a pocket of money that once you begin withdrawing it is Federal tax-free. Social security, pensions and 401k's are all taxable so a tax-free wod of loot is a good arrow in your quiver in retirement.

I will answer other questions....Just ask. :D


Its great pulling your money out tax free, but even after taxes, you make more money with 401k's. The amount you save by having it tax deductible, therefore being able to invest more per month/paycheck, more than makes up for what you pay in taxes when you retire. 401k>>Roth IRA. Not saying IRA's don't have their place, but touting a tax free withdrawal is not the advantage IRA's have.


Q is right on w/his advice. I'm not a big fan of anything that costs fees - funds don't give 2 craps about you, and too many brokers worry about fee income, not what the best investment for YOUR goal is. You'd really have to comfortable with the individual to let them give you investment advice.
Link to charts showing percentage of net income donated to charity crossed with political affiliation?


I don't have a link, but i'm pretty sure conservatives donate more than liberals.

#34 Recliner Pilot

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Posted 31 August 2009 - 05:37 PM

Invest in real creamer for the coffee. Secretary of the Week is in the bag. :music_guitarred:

Obama really inherited a mess for his second term. 


#35 itsbigmoni

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Posted 31 August 2009 - 05:39 PM

Religous conservatives donate more than secular liberals

This guy is a little misleading because he compares secular liberals vs religious conservatives. Secular conservatives give less than secular liberals and religious liberals give about as much as religious conservatives.

#36 MDC

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Posted 31 August 2009 - 05:39 PM

Thanks very much for the good advice. :music_guitarred:
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#37 Geo-Jay

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Posted 01 September 2009 - 06:48 AM

Its great pulling your money out tax free, but even after taxes, you make more money with 401k's. The amount you save by having it tax deductible, therefore being able to invest more per month/paycheck, more than makes up for what you pay in taxes when you retire. 401k>>Roth IRA. Not saying IRA's don't have their place, but touting a tax free withdrawal is not the advantage IRA's have.
I don't have a link, but i'm pretty sure conservatives donate more than liberals.






Itsbigmoni, Here is a hint. Keep your day job!

#38 hellothere

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Posted 01 September 2009 - 09:30 AM

get that hysterectomy you've always wanted
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#39 redtodd

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Posted 01 September 2009 - 11:46 AM

I am in agreement that Roth IRA's are better than 401k's, assuming the loads are in check. I would rather have my 401k (where the loads are waived) versus an equal Roth IRA fund with a 5% load. But as it has been said, you can get low/no load funds that should be sufficient.

The only thing that makes me nervous about Roth's (or any retirement plan for that matter) is what will the government's attitude be towards them 30 years from now. Seeing as we are becoming more and more of a nation of people wanting to share the wealth and reward people for not making sound financial decisions, I fear that 30 years from now someone will say, "Hey, look at all these people with tons of money sitting in retirement plans. They don't need that much money, they should share some of that!"
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#40 Birdseed

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Posted 01 September 2009 - 01:47 PM

Itisatipthat Roth 401k