I've never had much money laying around but a month ago, I inhertited $200,000 from an aunt that has passed away. I'm not sure what to do with it...perhaps I'm looking for a push or something. Will I buy gold or silver or put it into something else like the stock market? I'm at my wits end worrying about the future. If anyone can shed some light on what I should do I would be much appreciative. Is there a way to make my money work for me? As in invest in something where I'll see a return?
Thanks in advance.
My advice is going to be rather droll, but I'd recommend consulting someone in the financial industry, especially considering how large your bequeathment is.
Buy a house.
(english is not my native language, sorry for grammar.)
what Rcder said. There is a lot of high risk bets out there that you shouldnt get mixed up in unless you know what you are doing. With that being said have you thought about derivative swaps? they are all the rage! JK.
Also it would depend on how old you are and expectations on what you want this money to do for you. Do you want to try and turn it into millions? if so you will have to take high risks. Or do you want to help support your income a little every year with like 10,000$ and never touching the principal amount until you retire. Or are you worried strictly for retirement with options to withdraw your money in emergencies?
Im assuming since you are asking how to invest money you are pretty young.
Do you know what you know what you want to do for a career yet?
Have you been to college?
thats what i would do if i inherited that money. Invest it in getting an education, or invest it in starting a business.
facebook is also 20$ a share right now....buy buy buy. Sony is near its 52 week low and they just revamped their company. PS4 coming out, a new tablet, finally in the smartphone market, readjusting their market more heavily in medical equipment, the new batman was sony, new CEO, ect. I just bought some facebook stock this week and today, and im looking into sony. Thats just what im doing with my spare change.
i dont think there is much harm in taking $10k and playing the stock market. Scottrade/etrade something like that. I would be a good learning experience. Before you do anything id ask a professional though. See if there are any guaranteed 5-10% returns on investments out there. It would be alright to sit on the money on a very low return while you are figuring out what to do with it.
allocate your $200,000 budget across your basket of commodities until each marginal utility per dollar is equalized.
microeconomics is so helpful. :)
Ambition is a dream with a V8 engine - Elvis Presley
I'm going to disagree with Malachi here.
a) You were doing fine before you had the money, nothing should change overnight now that you have it. Maybe you sleep a little sounder but that's it.
b) Pay any debts off, day one
c) Don't buy a house, not in the US at least
d) Don't invest in anything that you don't actually understand, i.e. know how you're going to make a profit before you invest.
e) Remember that the dollar is, unfortunately, an investment, not a vehicle for savings. Ask yourself: Do you understand how the dollar works? Do you know why you're going to come out ahead in the long run by holding dollars? Anyone who can't answer those questions shouldn't be holding a lot of dollars.
f) Gold is the only rational vehicle for long-term savings. But $200K is a lot of gold. You can't store that on your own. You shouldn't store it in any US bank. I would take at least 90% of the cash and put it in allocated gold accounts overseas. You should put half in one jurisdiction (say, Zurich) and half in another (say London or better Leichtenstein, etc.) This will help you protect yourself against the vagaries of capital controls and seizures being enacted by governments around the world, most notably USG.
g) If you're young and unattached, I would recommend that you read everything by Doug Casey you can get your hands on and start thinking "internationally". Learn Spanish, get your passport, learn how to immigrate to Argentina or Singapore and, when you're ready, move. Get the hell out of here while you can. I don't have that option (children, family, other obligations, etc.) but my advice to anyone who does: get out now!
Clayton -
Buy books, invest in alcohol. This is me sort of speaking retrospectively, for if I bought a book instead of each six pack or bottle of whiskey I've bought, well, I'd have a damn library.
if I bought a book instead of each six pack or bottle of whiskey I've bought, well, I'd have a damn library.
Interesting observation.
Also, I totally thought this was a scam.
Just to counterbalance what some of the others have been saying: whatever you do don't invest on your own! The fact you inherited 200,000 means you can be a capitalist. It doesn't mean you have any qualifications whatsover to be a speculator. If maybe you'd like to be a speculator learn it by managing other's peoples money, or by paper trading (making ficticious investments). But don't gamble your inheritance to do it! Simply be a capitalist. Find a pro investor/speculator that you like and invest with them. You're rich now (for your age) — act like it. Buy a tophat and a cigar, sit down on a sofa and have other people work for you — have a pro specialist with a proven track record manage your investments for you. Research good fund managers, I guess I would start with Schiff and Rogers (and with whoever manages Ron Paul's money) and invest with them. I'd also buy whatever amount of physical gold I would be comfortable holding, burried under my home or something.
Buy gold bars and hide in extra secret super safe safe underground.
Clayton- why would you get away from here and learn spanish?
Get a self sustaining food garden.
Buy lots of weapons
Buy lots of water
Buy solar panels.
Live off the grid.
Build a bomb shelter.
Get an anti tank gun (or rpg)
“Since people are concerned that ‘X’ will not be provided, ‘X’ will naturally be provided by those who are concerned by its absence.""The sweetest of minds can harbor the harshest of men.”
http://voluntaryistreader.wordpress.org
No. Bear in mind that - while $200K is a windfall from $0 - it's not that much money in the grand scheme of things. It's a lot of money but it will be easy to blow it.
Ask Doug Casey, Jim Rogers, Marc Faber, etc. etc. The US has been on a long, very clear trajectory of self-destruction. On our current course, there are only two options... either one or both will happen: economic collapse and/or war. There are no other possible outcomes of the current trajectory of USG policy.
... perhaps, but don't waste money on a garden unless you're serious about gardening.
One is enough. You should have a handgun for home defense. Get something practical and price/value sensible (IOW, no cadillac Sig-Sauer stuff unless you like to do competitions).
... a rack of water bottles is enough. Enough to be able to get out of town in the event of a major catastrophe. From there, you can figure out what to do next.
No.
Absolutely not!
Hopefully you saw the partial sarcasm. I see your point, the US is turning into a massive police state/economic shithole/war mongering, but at a very slow pace.
I guess i could move to switzerland, or buy your own ship and live on the sea..
The self sustaining food garden isnt a bad idea though.
well if you would of listened to me you would of made $11080 with your money today by investing in facebook... just an FYI.
though im breaking even, bought it at 22 and today at 20.
f) Gold is the only rational vehicle for long-term savings. But $200K is a lot of gold. You can't store that on your own.