i will be getting 40k what to do with it

[xsnrg]

You're 25. You can afford some risk with time to make it up. Park the money somewhere it will make some return for you. In the meantime, if you dream of owning your own business, go work for a business just like the one you'd like to start...even if it is ass't manager at a Dairy Queen since you mention that. Get to know the insides and outsides of the business as an uninvested observer and be darn sure you know what you're getting into. Find yourself a trusted and proven mentor in the field you want to open a business in... there is a lot of wisdom out there available to be had for the asking and showing some respect and gratitude. When you know what you're doing, you'll have some startup capital and a trusted advisor to guide you in not losing it. Take a look around you at the next amateur MX track you're at. There are a ton of big expensive rigs there full of racebikes, spares, and practice bikes. Here's a hint... a good percentage of them own their own businesses. Even as an engineer, you won't be affording a rig and bikes and the time off to do those things...not that it is your goal necessarily. Many first time business do fail, but how do you ever become a 2nd time business owner if you don't even take that chance? Here's a tip... a lot of engineers fail also... it's a thing called continuous layoffs and outsourcing. My advice is figure out how to be your own employer and use the leg up of having capital to get it done, just don't hurry into it without a plan, lot's of preparation and studying, and someone that has already learned the mistakes the hard way and is getting out of the business. (or are enjoying a lot of success in a non-competing market). btw...no offense to engineers, I pick on that b/c that was my background and have done and observed the corporate engineering thing at a Fortune 5 company + observation of a lot of others in the field.

 

[Ol'89r]

ok guys so i will be inheriting 40k in like 6 months. I am not sure what to do with the money. if you were 25 again and in my shoes what would you do?
:cool:

Hubert.

Forty K sounds like a lot of money but if not properly invested it will disappear faster than you could imagine.

If I were in your shoes, I would invest it in gold, silver and oil stocks. Get rid of the dollars as fast as you can. Trade them for pre-1964 silver coins or numismatic gold coins. Invest in real coins not an ETF. (Electronic Trading Fund). You can buy a 715 ounce bag of quarters at todays price of approx $19.50 an ounce and just sit on it. While everyone around you is watching their dollars decrease in value, you will be watching your investment grow. Platinum is another good metal to invest in. Numismatic gold coins are good because they can't be confiscated by the government. If our economy goes to crap, you will at least have real coins to sell or trade. If you buy silver certificates or through an ETF, you will only have a worthless piece of paper that shows how much you lost.

The US government along with the federal reserve is in the process of raiding everyones retirement funds. By printing more and more money, it makes the dollars we have in our wallets worth less. Every time they come up with a new plan to help the economy by printing more money it hurts the rest of us. Helicopter Ben's plan to drop billions from the helicopter is only going to devalue our dollar even more. And, the helicopter is being loaded as we speak. :ohmy:

The lower the value of our dollar the faster gold and silver go up.

Talking to a funds manager is a good idea under normal circumstances, but things are not normal right now. Many people are losing thousands of dollars daily from their mutual funds. Stocks are going into the toilet and housing is a crap shoot right now. With housing timing is everything and now is not the time in most areas.

Do your own research. Be your own money manager. All of the information is on the internet and there are some very good books to read up on how our economy works. Or doesn't work.

Remember, stock brokers and funds managers first job is to make themselves money.

I will send you a couple of links to read up on.

 

[HubertGarfunkleIII]

Take the short term loss for the long term gain, Finish your education!

Ok so most guys say to invest it in mutual funds etc. I know nothing about them but that seems the way to go. But I have also been thinking about what was said above. I am going to school for radiology. its like a 2 year program. But I agree with you guys that im sure the money will go fast! As you guys said I could put it in and watch it increas quickly. and in a few years have 50k instead of 40k, but I could also be done with school and be making 50k a year in a few years. I think maybe what would be best for me would be to invest it like you guys said and than use the interest to supplement my income. some one said earlier that I could conservatively be getting an extra $400 a month in interest or something like that. And that would make all the difference for me, which would allow more time for school, I wouldnt be blowing my money away either. so it would stay at 40k and never increase because I would be taking the increas monthly correct? Also buying into oil or something like that, man there are so many options.

 

[thumbs]

Check out ING and ETRADE. Both have checking/saving account that earn around 4% with no risk and you money is not tied up.

Also the OL89er guy is on track with his thoughts.

 

[OldTimer]

I always tell my sons that "ya gotta eat your peas and carrots before you have your cake and pie". Meaning that if you put the windfall aside(invest it) and go ahead and tough it out through school on your own, not only will you be stronger as an individual, you will have the satisfaction of knowing that you made do with less. Once you're out of the woods and are in a position where you can afford to buy a home without using the funds that you've set aside, you may have enough to do something that will have a significant effect on your life. If you start chiseling away at it now, you'll be left with nothing by the time you're in a position to do yourself some good.

 

[Shaw520]

Everyone here have offered some very good suggestions, and most are solid, conventional investments idea's...... but allow me to be the devils :p advocate for a moment;
Funds placed in liquid accounts can be attached, for example, auto liabilty coverage 50,000- 250,000 can easily be chewed up in an accident,.. when thats depleted they will come after your 40k (real estate as well).... and thats just ONE example of how liquid funds/investment property can be risky.
An investment in a corporated LLC business will seperate your personal risks from your invested dollars.
Not to be negative,.. but with our ever growing 'sue happy' world,.... one must consider all possibilties.
(NY lawyers are the worst!!!)

 

[_JOE_]

If it were my 40k and I was in your situation, I would go to my bank and put it in a cd and forget it even existed. Watch the news and pay attention, the stock market is falling, real estate is falling. People are losing lots of money right now. Be careful.

 

[mtk]

I'd put it towards a house downpayment. The money will help you afford a place, plus save you on mortgage insurance if it lets you put 20% down. Then instead of paying rent, you build equity.

 

[gracey]

I'm with Joe.
I don't think you have the knowledge or expertise to deal with rental property, plus, even in a good market it is easy to make a bad investment. The bottom isn't out, and the likelihood of you being able to get loans terms with the jobs you currently possess would have you maxed out. Kiss school goodbye and hello foreclosure with a bit of bad luck. I worked in real estate for a long time, and think others have pointed out the pitfalls you would be confronting, even if you DID know what you are doing. Which you don't.

I also don't think you yet have the expertise to deal with metals and the many other good investments recommended. $40000 can disappear quick on a spending jag or a bad investment. If you must, set aside money for your tuition, and take $1000 to put in some sort of high yield investment to help you learn. (Or there are web sites that you can take pretend money and learn how to invest.)

That would still leave (presuming you don't have taxes on this windfall??) a large sum of money to stick in a cd while you learn about investments and finish your education. You have so much growing up to do. It's okay to be a late bloomer, but, you do need to learn a whole lot before you can feel good about the decisions you are making. Even then, you may still have a knot in your stomach. 5 years from now you will be a lot smarter, and the economy much stabler. That is a good time to revisit how to spend this money. You will have finished your education, have some experience.

I'd also strongly recommend that you not follow Ivan's advice, or your own inclinations to build a foam pit in your backyard. You'll be working those two low paying jobs forever, with that sort of piss your money away attitude. Then you can forget the houses and other stuff.

Good luck to you. I think you are showing great wisdom in asking for people's advice. It is good that so many knowledgeable and experienced people stepped forward here. Now, it is up to you to be smart enough to follow the advice you've been given.

 

[truespode]

I'm still advocating the CR500AF's.

:)

Ivan

 

[IndyMX]

I'm advocating sending it to me, I'll see to it that it's invested well.

 

[HubertGarfunkleIII]

I'm still advocating the CR500AF's.

:)

Ivan

make it a mcgrath replica and you got yourself a deal ;)

 

[ebony dream]

haha everyone wants it...but really the ebst thing u can do with money..and im not saying all of it is invest invest invest...buy shares...things like that..and put the rest away into a savings keep working...dont quit ur job cuz money runs out real quick trust me lol

 

[YamaB]

Roommates suck
Most first time business's fail
40K will disappear in hurry and it will be hard to replace at minimum wage
The housing market is failing across the country, the bottom isn't here yet

Take the money to a professional and get into mutual funds, they're diversified. They're not as risky as stock, you can let it ride or use the earnings to supplement your income. Your principle will still be available when you finish school. By then you'll have a better idea what to do. There are several funds that are still preforming well in the current market. You can conservatively make $400 per month in interest with the right funds.

Just my .02 worth...

I agree with this. Although using the money to finish school would also make for a wise investment into your future...

 

[HubertGarfunkleIII]

thanks for all the input guys, since its not enough money to really get a house or open up a small business, and since i know nothing about investing I have decided to use it for school. Also I really need to use that money to get by, I couldnt put it into a cd and sit back and continue living like this. Using it for school will give me a better quality of life for about a year or so and it will also help me finish school. so thats what I have decided to do. Thanks for all the help! :cool:

 

[mox69]

thanks for all the input guys, since its not enough money to really get a house or open up a small business, and since i know nothing about investing I have decided to use it for school. Also I really need to use that money to get by, I couldnt put it into a cd and sit back and continue living like this. Using it for school will give me a better quality of life for about a year or so and it will also help me finish school. so thats what I have decided to do. Thanks for all the help! :cool:

If you are going back to school , fill out a FAFSA!!! http://www.fafsa.ed.gov So many kids forget to fill these out and the government gives out a lot of free cash, take advantage of it.

I would recommend you spend a lot of time researching mutual funds, investments, student loans, grants, etc. before you do anything.

Also, $40k should easily get you through two full years (4 semesters) of school fairly comfortably. I have lived very nicely the past 2 years as a full time student on about 35k a year (loans + grants + job). About 8-10k of that going to tuition. Freshman and sophmore year I did it for 25k probably.

Please don't be like the moron in my high school who got a settlement check on his 18th birthday and buy a new truck + spend 5k on rims and tires!

 

[Shaw520]

Using it for school will give me a better quality of life for about a year or so

So,.... you've decided to blow it! :nod:

 

[HubertGarfunkleIII]

If you are going back to school , fill out a FAFSA!!! http://www.fafsa.ed.gov So many kids forget to fill these out and the government gives out a lot of free cash, take advantage of it.

I would recommend you spend a lot of time researching mutual funds, investments, student loans, grants, etc. before you do anything.

Also, $40k should easily get you through two full years (4 semesters) of school fairly comfortably. I have lived very nicely the past 2 years as a full time student on about 35k a year (loans + grants + job). About 8-10k of that going to tuition. Freshman and sophmore year I did it for 25k probably.

Please don't be like the moron in my high school who got a settlement check on his 18th birthday and buy a new truck + spend 5k on rims and tires!

but they're SPINNINN!!!!!! they're SPINNINN!!!!!! :rotfl: