Hookers.
Hookers.
Flagpole,
Stop posting these made-up questions from made-up people in made-up situations.
We all know you think you are some type of financial guru and we don't need you to keep trying to demonstrate this to us.
Flag Pole wrote:
You seem knowledgeable about what you want.
If you are interested in Commodities and Foreign Indexes, try the Commodity and Foreign Fund ETF's. There are many that are specific to a certain regions and countries, a commodity or basket of commodities. You can be broad or you can be specific. Its up to you.
The market place is cheap, and has been for this year and its a good time to get in if you are looking long term. If you are thinking only a couple of years you probably should put a good percentage in Money Market Funds with a variable interest rate as inflation picks up. You can put the rest into a mutual fund or open fund, whatever your investment objective is. These funds tend to be broad and will give you a modest return as the market comes around, now is a great time to get in long term.
In this market, I suggest that you do not speculate with your capital, but if you choose to do so, there are plenty of undervalued stocks to pick. Only put a small portion of your portfolio into any individual stock. If you are thinking of buying Goldman Sachs for instance, pretty much the only survivor in this economy so far, go ahead, you'll have great company with many members of government and Warren Buffet. If you want stock in any Health Care provider go for it as well. Look for dividend return and growth. Remember its speculative, but these are large institutions and you will have good company regardless.
You also may want to look at long term and short term bonds, interest rates will have to come up sooner or later once the recovery begins. Again if you want to take this route do your own research and consult a financial professional.
Lots of bad advice so far as usual. To the guy above ... "marketplace" is one word, and Warren Buffett is the Oracle of Omaha ... not "Buffet". You say over and over, "if you want this", "if you are interested in this", "if you want stock in health care", he doesn't want any of that, nobody does, they want to make money.
You suggest that he not speculate? How is any equity investment NOT speculating? Do you have a list of stocks that are SURE to grow that you aren't sharing with us?
To J.R.: why would you not invest this money? HE says six figures, so it could be $500,000 or more. By not investing it he is giving up $15,000 a year guaranteed. How cold you really believe this?
To JR Ewing: Seriously? $500,000 in a safe? How is losing out on the guaranteed $15,000 in interest and the safety of having it in a bank (FDIC insured) going to be better than risking having it stolen? This was easily the worst advice on here, just ahead of J.R.'s advice above to "not invest it".
I would buy rental property and rent it out.
That's my birthday so I hope it doesn't end then.
Fly on the wall in Portland wrote:
Flagpole,
Stop posting these made-up questions from made-up people in made-up situations.
We all know you think you are some type of financial guru and we don't need you to keep trying to demonstrate this to us.
Wasn't me brother. WEJO, DO AND IP CHECK, AND IF I LIE, BAN ME FOR LIFE!!!!!!!!!!!!!!!!
need Expert advice wrote:
I need some advice, I received a significant amount of money from a legal settlement for land my family owned and is now deeded to me. This is a lot of money after taxes and court fees. Where should I put this money in the interim of having to use it? I don't think I will need it for a couple of years and I want it to grow modestly.
I know the economy is getting killed, in fact this settlement in a way saved me. Is now a good time to invest this money? I am thinking highly undervalued stocks, such as the financial sector, and a number of diverse options such as Large cap and Small cap stocks, health care, commodities, Foreign ADR's, and a number of other real estate investments as that sector has been hit pretty hard too. I think the Economy is going to turn around, and I can already see Obama has started making some good changes.
Is now the proper time? What should I buy, I know some of you work in this field and would like to know your thoughts. Thanks in advance for your help.
There are so many ways you could go, and many of them depend on your age and stage in your life.
At 42, if it were me, I would pay the balance off on my house and just be done with that, but that's because I already have lots invested for retirement.
If you are younger or don't want to own a home, then I would do the following:
1) Set up an emergency fund of 6 months of expenses. This can be a low interest savings account or Money Market Fund...just something that is liquid and that you keep at this level. The purpose is NOT to make money on this money, but it is ok if you do a little bit. The purpose is to keep you from going into debt when emergencies arise.
2) Pay off debts. If you want to ride out a 0% car loan or a 2% student loan or some other very low interest loan, then that's ok (though very freeing not to have payments of any kind).
3) Start to invest. If it were me, I would FULLY fund a Roth IRA for 2009 ($5,000) at this step. Within the Roth IRA, buy good growth stock mutual funds (either index funds or split up evenly the following way...growth, aggressive growth, growth and income, and international).
4) Continue investing. If there's enough money left after paying off debt and setting up an emergency fund and fully funding the Roth IRA, I would put the max now into your 401k ($16,500 for 2009). Invest in a similar way in this 401k as you did in the Roth. Choose different funds though for more diversity.
5) Any money left over at this point should be put into a non-retirement mutual fund. You can use this money down the road to buy a house, fund college, retire early (that's my option with my non-retirement account money).
If you are ready to buy a home, you could just plop it all down and perhaps even buy a home outright (you said 6 figures but didn't say where in 6 figures it was). If you do decide to buy a house with this money, then you should take what would have been your housing cost each month and put it into Roth IRA and 401k accounts (401k first up to the company match, then Roth and then back to 401k).
No matter what you do with this money, the result of it MUST be that you are now investing a lot more than you would have (either investing right away with a lot, OR getting rid of expenses like a mortgage so that you can invest a lot going forward).
Good luck brother.
www.vanguard.comwww.fidelity.comhoes
Hi there sweetie I have been looking for a new man, you big hunk. You just let me take care of all your problems my sexy baby. You know how much I love that big 'ol thing you got and mamma wants it all the time.
Go hunting for strippers and cocaine in Vegas...
Give it to me. I'll take good care of it.
Flagpole wrote:
3) Start to invest. If it were me, I would FULLY fund a Roth IRA for 2009 ($5,000) at this step. Within the Roth IRA, buy good growth stock mutual funds (either index funds or split up evenly the following way...growth, aggressive growth, growth and income, and international).
If he's pulling in a six-figure settlement this year why the hell would he use a Roth IRA instead of a traditional IRA?
The settlement counts as income dumbass.
Futhermore his AGI will most likely be too high to invest in a Roth IRA this year. His deductibility of his contribution to a traditional IRA will be completely phased out because his AGI is too high. This just goes to show you that Flagpoles one plan for all is not foolproof. Please all remember there are tax implications to every situation.
Read David Swensen's book on investing.
Flagpole and his investment advice just got served along with TK1451's!!! Take that know it alls.
I would trust the opinion of random strangers who frequent running websites. Whatever you do - do not seek professional financial advice
buy Gold. buy freeze dried food. buy a gun. buy Farm land.
Turn that money into things fast. Buy everything you will need for the next 2-3 years at least.
SPEND ALL THAT MONEY ON LOTTERY TICKETS
Hide it from that socialist bastard Obama.
TK1451 wrote:
Flagpole wrote:3) Start to invest. If it were me, I would FULLY fund a Roth IRA for 2009 ($5,000) at this step. Within the Roth IRA, buy good growth stock mutual funds (either index funds or split up evenly the following way...growth, aggressive growth, growth and income, and international).
If he's pulling in a six-figure settlement this year why the hell would he use a Roth IRA instead of a traditional IRA?
The settlement counts as income dumbass.
Assuming his AGI is $200k or more, he is not allowed to contribute to a ROTH IRA, and he could contribute to a traditional IRA but he would not be allowed any tax deduction. (as "fagel" has said below your post). So he would not need to decide between the two types of IRA's.
Flagpole's advice is solid, except for just forgetting that when your household income rises above about $150,000 you don't have all the choices that lower income people do.
There are other rules too. If you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:
- More than $85,000 but less than $105,000 for a married couple filing a joint return or a qualifying widow(er).
- More than $53,000 but less than $63,000 for a single individual or head of household, or
- Less than $10,000 for a married individual filing a separate return.
But the OP didn't spell out any of this and Flagpole's advice is all sound and considered "Personal Finance 101" to all savers.
Obviously, if the OP got a $500,000 windfall, then if he were to take any of this advice, he would be prevented from investing in any of the IRA's with income limits and there would be no crisis, because he wouldn't owe any unexpected tax due to this advice.