I will be getting a lump settlement of $250,000 at the end of January and have no clue what to invest it in... a friend suggested investing in a new company ...and be a silent partner..... Any ideas as what you would do....

I alrady own my own home and do not want to move..... and I am partial owner in a sucessful computer company..... and both my children already have enough put away for College....and my cars are paid off.... so other then "normal" bills I have nothing outstanding to pay off....

What about your future - do you have enough saved to live on comfortably as you grow older?

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Bevogal

your bank may have a financial advisor who will invest the money for you you can set it up where you dont lose your initial investment and if anything happens to you it goes to your spouse or children how ever you set it up. you can then live off the interest after you hit a certain age or i guess anytime. you can decide how to invest it low or high risk with that money its work seeing a financial invester a lot of insurance companies also have them for you

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I just read somewhere the other day that right now real estate was the wisest investment at this time.

Stellati has a good suggestion also.

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Barb


My GOD Bless our Country and our Troops, and rid the World of terroists.

If it was me, I'd buy land... as much land as you can in an area that can be subdivided into lots or acreage in the future and that has an established water source, power, accessible by paved road, and is not in a flood plain...

I would buy a $125,000 certificate of deposit at 2 different banks.
Our banks are offering over 5% now.

Conservative ,but safe investments.

I agree, especially if you are not sure. ING has savings accounts with almost 5% yield and they have a 12 month CD with 5.10%.

Real estate WILL be a good when the foreclosures start hitting the market like they did in the 80's and early 90's, but not yet. People are just starting to feel the crunch of those adjustables they got to afford that huge house and now that rates are going up, so are their payments. SOme aren't going to be able to afford it and will try to sell and bale out, or just sink. The forclosure list gets bigger every week around here, very sad.

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"A true friend is someone who thinks that you are a good egg even though he knows that you are slightly cracked." ~ Bernard Meltzer

I am with the others I would invest in cds & at a couple different banks I think cds right now are close to 6percent

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mom of 3 greats girls

Personally, I'd stick it in a money market account and let the interest roll baby.

I would contact a Certified Finiacial Planner. She/he can evaluate your current financial situation as well as what your future financial needs will be including for retirement, etc. You can also go to a broker and see what your options are for investments. They will evaluate how much risk you are willing to take and then you decide what your investment will be.

Since I have 2 teenagers I would invest in their future---college. I believe that real estate is still the best investment. Seems to me that you have everything else pretty much covered. Even if real estate is not as strong as it has been, it is said this is only temporary and here in Calif. real estate is back on the rise already. But, I say a financial planner is really what you need. Congratulations to you on your whole financial package...looks like you are doing well for yourself I am sure you will handle this just as judiciously@

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"Your candle does not lose it's light by lighting another candle" Generosity

Have the courage to be yourself.

I am in a similar situation. I lost my mom two summers ago and the estate is finally being settled. Everything has to be liquidated and distributed by May. The first thing I would do is talk to several investors. A poster had a good comment about thinking about the future. You may be a lot younger than me, so you might not have thought about that. I am 49 (TODAY), and I am presently single. I have 12 more years before I can retire with 25 years from the school system. I don't imagine my retirement will be more than somewhere in the low $20,000. AND...when I retire, I will still owe 15 more years on my house--note is $940 a month. SO...I am considering paying off the house as I get closer to retirement. Those are just thoughts. My BEST advise came from my future brother-in-law who handles finances for a large company. Put $100,000 each in three different banks...and put those in CDs that mature at different intervals...split up each $100,000 into CDs that mature in six months, nine months, and twelve months. THEN...don't make any big decision as to what you will do with the money for at least a year! THINK about what your plans are...and THINK about the future. Be smart with the money. Good luck to you in your decisions and plans. BTW...this may sound selfish, but remember...you are responsible for YOU (and of course, your children)...take care of you, not everyone else. I have to remind myself of this because I could blow it all doing for others! :-)

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If you're not living on the edge, you're wasting space.

If I were in your situation, this is what I would do too.

That being said, if I was to get $250,000 tomorrow, the house would be paid off, the cars would be paid off, the debt would be gone, DH's truck would be traded in for a newer model 4x4, we would sell our current and buy a newer house, and we would pad our savings account and our son's savings account. And then we would take a family vacation to Disneyland!!

You seem to be in a financially comfortable situation already. What I would do, if I were to come into that kind of money, would be to purchase a vacation home that I would use and love and enrich my life. One that would provide a bit of rental income to make it self-sustaining. Sort of a real estate investment that you will use and enjoy and enhance your quality of life with. ( Mine would be on Cape Cod)

The investment advisers at our banks do not charge any fees!!

I may be coming into this a little late, but thought I would share my thoughts. It sounds like you are in a pretty good place financially speaking. I would consider a financial advisor....but I would weigh what they say against the advice offered at financialpeace.com. Dave Ramsey has some of the best advice I have ever seen. He doesn't push gimmicks, get-rich quick or fly by night methods. He offers good advice as far as planning for your future goes. We have been following his methods for eliminating debt and being in control of our finances (which weren't in a bad place to start off with). One thing I would encourage you to do is something in a philanthropic manner. I had a professor who taught me to save aside a part of my earnings to give to others. This is a concept that is often over-looked. I just can't tell you how wonderful it feels to know that you can meet a need for someone when it arises. We were recently able to help out a family (in secret) and it absolutely made my whole month to know that God blessed me with the opportunity.

Debt - free is a great way of life!

I just noticed after rereading this that under trading queen(the original posters name) that is says banned, Does that mean that they are no longer able to post here?

I would put some in a cd. I would probably also consider taking up a franchise.

congrats to you!! we recieved a lump sum over this past year and we talked to a financial advisor through our bank. I also found some advice at savingadvice.com best of luck to you.

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Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. - Will Rogers

Very interesting!
I am interested in knowing this answer

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Real Estate is the best financial investment a person can make these days. If you don't want to be a landlord get commercial property the renters are responsible for maintenance and upkeep.

I would not suggest being a silent partner in a business unless you are prepared for the possibility of losing your money. If you are a silent partner you have no say even if the person is running the company into the ground.

If I had $250, 000 I would pay my house and car off, put some money into a Roth IRA, buy a few stocks and then do a lot of research to make monthly investment installments on some mutual funds, municipal bonds, etc with the money I used to pay my mortgage and car payment with. You will save tons of money in interest fees and if some horrendous things happens your home and vehicle are paid for. Peace of mind.

What it comes down to is what are looking for? Are you looking for security? A long term conservative investment? A get rich quick idea? Some day trading for a quick profit? Peace of mind? Something for your retirement? A vacation fund? College money for the kids?

First decide what you want to accomplish with this money and then you will be able to formulate a plan to get there.

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Eat Chinese food you'll be hungry in half an hour. Eat Italian food you'll be hungry in two weeks!

I would not only talk to a financial advisor but also an accountant. What are the tax consequences on geting this money? What taxes will you have to pay on it? Do you have to take it in a lump sum or can you recieve it over a course of time? Like have this year and half next year...even if you are in the 15% tax bracket you'll have to pay $37.5K on $250K...if you don't need the money right now what about your future? When will you retire? Before investing the money you need to think about when you will need the money and what kind of risks you are willing to take on it.

I don't post here often and I don't really know anybody here. There is some rather poor advice floating through these postings. The worst may be what your friend suggests. The best is to look for financial advice at your local bank or perhaps an independant financial advisor. Tax advice probably should be the first thing you think about. Another good choice is something conservative like a CD and or a money market until you figure it out. I am not sure you can trust most brokers. They are often selling what their company tells them to sell. Mutual Funds are a problem because the same thing happens. The salespeople push what they are going to make the most money on. There are some good no-load funds out there. The right advisor will steer you in that direction. Diversify!!! Eventually you might want some in CD's, some in stocks, some in Mutual Funds. Talk to more than one or two advisors. With a sum that large you could pick two and split it between them. Give them a year and see who has done best. They usually charge a percentage of the amount invested. It's been a while since I have looked into it, but it seems like 1/2 to 1 percent is about right. The banks may not make a direct charge but you pay for their advice one way or another. That does not mean they don't give good advice, but just know that somewhere it will cost you.

Real estate depends on where you live and for most of the country, the time is not right. Where I am, houses are sitting for a long time, but the prices are not dropping yet to any great extent. Buying land for development is for pros, not novices. It could take years to realize any gain and you mght never get any. Any land that is in the way of progress has already been picked over if the progress is going to happen within the next ten years. I wish you well.

Didn't know if you saw it or not, but the OP of this thread has been banned and may not have access to what you just posted.

It's listed right under their user name in the upper left hand corner.

X

I would hope that someone would not take advice from an internet message board in regards to a $250,000 investment.

There be excellent land where I live, LOL.

This is a horrible place to ask for this kind of advice and, quite honestly, you have gotten some horrible advice. The most important bits of information (your age, current liquid assets and investments) have not been included in your post. Get a recommendation (or two or three) from friends/coworkers/relatives for a Fee Only Financial Advisor. This type of advisor has no stake in a particular company and does not earn commission. A financial advisor who charges nothing is making his money from commission. Do you really want him making recommendations based on how much HE will make?

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