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Author: Subject: what to do with 65 grand

Peach Head





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  posted on 2/27/2008 at 10:28 PM
besides wanee and bonaroo which i have always found the funds for
i will be getting some cash and besides a new roof and some things that are needed around the house , where should i put it
never been a financial whiz , always semed to be week to week around here
i am mid 40s with a teen and 2 older kids
any suggestions, and i am trying to be serious i have seen these threads go to the potty
thanks and see you at the next show

 
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Extreme Peach



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  posted on 2/27/2008 at 11:00 PM
I'd buy some CD's, rates are so so but they're pretty safe, a mutual fund is safe too for the most part. I don't do the stock market, but you gotta ways to retirement but maybe start an IRA Roth or a 401 K retirement, make money with your money. Remember for retirement you should have a pension,SSI, and your own savings too.Keep fixin up your house too, real estate is the best investment there is. I hope this helps.

 

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Maximum Peach



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  posted on 2/27/2008 at 11:23 PM
If you have any debt you might be better off to pay it down or off completely.

If you don't have "rainy day" money, that is smart to do too.

Is there anyone in your family struggling? If you can afford it, helping out a close friend or family member in need can have a great impact in somebody's life.

As for investing -

Mutual funds are easy. If you get into any investments be aware of any and all costs/fees/commissions. You can buy some good index funds from Vanguard or Fidelity that are very low cost (fund costs are also refered to as expense ratio). Many of these funds have annual fees in the .2% range. Index funds are cheap. Other mutual funds might charge .5-1.50% annual expense ratio - still not bad if it is a good fund with a history of beating it's benchmarks. If you buy through a broker in your area you will likely pay a commision plus any fees the funds charge. Some funds charge an upfront load or sales charges, avoid this if possible. What you want to do is not lose much money buying into your investments. You don't want to buy into something for like $50,000 only to lose 5% off the top unless you are getting some really really good service for that price.

If you are more comfortable with bank investments see if you can get a CD with atleast 5%. Anything less and it isn't worth it. With interest rates being what they are, CDs are probably a bad place to put your money.

You might want to look for some tax free bonds that you can get 6% on. It is tough to find good bond rates right now too.

If you want to put it away and not really worry about it too much and not be able to access it then you can do an IRA or 401K. You could get with a local broker if you don't mind paying them for their services. Just find out all of the fees and commissions up front.

Just be smart with it. Somebody else will probably come in here and say, you only live once...live it up. After you think about it a while you will know what you should do with it.

Depending on your outlook of our country's financial condition and future, you could buy gold. Picking up a small amount like an ounce or something and keeping it in a safe place wouldn't hurt, but it is pretty expense right now ($960 oz).

 

Zen Peach



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  posted on 2/27/2008 at 11:41 PM

Dollar cost average into a stock mutual fund..My personal choice the Vanguard S&P 500...
The S&P has averaged an 11% return over the last 70 years.

Take the amount you want to invest and divide it by 12...That's how much you buy each month for the next year.

 

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Zen Peach



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  posted on 2/28/2008 at 01:31 AM
Stay away from casinos, the worst thing you can do is start winning.

[Edited on 2/28/2008 by Haisija]

 

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A Peach Supreme



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  posted on 2/28/2008 at 01:54 AM
My first ex-mother in-law, (God rest her soul) who made millions years ago when a million meant something always told me "if you ever hit the lottery or come into a large sum of money, bank it for a year and think about what you should really do with - do not spend it foolishly"....

she was probably one of the smartest people I've ever met when it comes to money, shrewd as shrewd can be (I never got one dime out of my ex partly because of her, thanks Eleanor!).

If my ship ever comes in or I am ever faced with a sizeable amount of cash staring at me, I'm taking her advice. Put it away for a year at the highest rate of return and then decide how it should be used...

 

World Class Peach



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  posted on 2/28/2008 at 01:57 AM
quote:
I'd buy some CD's...


at $12 per CD, you can get about 5,416

 

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Zen Peach



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  posted on 2/28/2008 at 07:27 AM
I'll second the pay down or off your debt, it will make your daily life so much easier.

 

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Extreme Peach



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  posted on 2/28/2008 at 08:27 AM
invest in gold mining stocks. You can research them here:

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID667551

http://www.kitco.com/

 

A Peach Supreme



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  posted on 2/28/2008 at 09:00 AM
pay off my debt's and put the rest in the bank [son's school fund]
 

A Peach Supreme



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  posted on 2/28/2008 at 09:08 AM
As we go into a recession, or are there now, depending your slant, Mutual Funds can SUCK. Bonds and guaranteed return investments are the best in a really bad economy, where in a good economy they are the worst way to invest, as lowest return.

You will see Mutual Funds be impacted by foreclosure situation in homes, as many have Security investments which ride on these. Some Retirement Funds also invest in Security stuff and they will start going bankrupt or in bad loss situation.

Put half the money in a safe return, albeit lower return fund and keep for future.

there are smart deals out there in various areas if you know your stuff. Classic cars and guitars are selling pretty low compared to a year ago, but that is a players market....

 

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Peach Master



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  posted on 2/28/2008 at 09:18 AM
That's easy. Order a 2008 Dodge Challenger SRT8.



EDIT: Switched to a pic my friend took at the Jacksonville Auto Show.

[Edited on 2/28/2008 by bdwalton77]

 

Sublime Peach



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  posted on 2/28/2008 at 09:32 AM
Do you have a Roth IRA? If not, I would think that now would be the time. The yearly contribution limit is up around $5 or $6,000 now, but if you're over 50, you can put in more per year, called the "catch-up" contribution. If I were you I would earmark at least $20,000 of your money into this over the next four years. You can put it in a stable interest earning fund in the meantime until time allows you to invest all of it in your Roth IRA. Why am I so hooked on a Roth IRA? Because every penny of interest and capital appreciation your money earns is yours to keep, NONE of it is taxable!! Here's a good Roth IRA fund, which my Roth is invested in: The company is American Century and the name of the fund is Equity Income. Go to www.americancentury.com. The Equity Income fund pays good yearly dividend and capital gains earnings, and in a Roth IRA, it's all yours to keep.

A Roth IRA is a retirement fund, you can start withdrawing from it at age 59-1/2. If I remember correctly, to avoid penalty, you also would have to leave your money in there for at least five years. I'm sure information on any details and restrictions would be available at the above website, or their toll-free number listed on the site.

[Edited on 2/28/2008 by robslob]

 

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A Peach Supreme



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  posted on 2/28/2008 at 09:38 AM
quote:
That's easy. Order a 2008 Dodge Challenger SRT8.




I have an affinity for these ones, so this clip I am partial to, but it really says it all...

Maybe the best movie scene ever, and it relates to this thread.

http://youtube.com/watch?v=W3dcbI0f5ic

 

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Universal Peach



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  posted on 2/28/2008 at 09:40 AM
I'm a financial advisor....PM me if you like.
 
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Extreme Peach



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  posted on 2/28/2008 at 09:41 AM
Host a giant piano festival!!!!

 

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Zen Peach



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  posted on 2/28/2008 at 10:01 AM
quote:
I'll second the pay down or off your debt, it will make your daily life so much easier.
I cashed out a 401K, and after I paid taxes and penalties, I paid off some debt. Wasn't long after that, the debt got run right back up....and then some. So now, I am 30K behind in my retirement fund and stil up to my ass in debt.

DON'T PAY DOWN DEBT WITH IT. Put the majority of it away for the future. We are in uncertain economic times.

 

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Zen Peach



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  posted on 2/28/2008 at 10:04 AM
If you have any credit card debt or car loan pay it off first. Then invest in IRA or 401K. Don't know whether you will be financing college for your kids - if so, you may want to look at a Section 529 plan to save on taxes.

 

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Zen Peach



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  posted on 2/28/2008 at 10:07 AM

If you put $40,000 of it into a mutual fund that averages a 10% return over the next 20 years...You will be sitting on a tidy sum of around $320,000 in 2028....

 

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Maximum Peach



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  posted on 2/28/2008 at 10:08 AM
If your like me 5 years from retirement. Invest, Invest, Invest............

 

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Extreme Peach



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  posted on 2/28/2008 at 10:11 AM
I would first make sure that I had a rainy day fund equal to six months of living expenses. In my life a windfall is always followed by Mr. Murphy and his minions. I'm a follower of Dave "If you can't pay cash, you probably don't need it" Ramsey, and that is always his advice. After that, start snowballing your debt payoffs from smallest to largest.
 

Peach Master



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  posted on 2/28/2008 at 10:26 AM
quote:
If you have any credit card debt or car loan pay it off first. Then invest in IRA or 401K. Don't know whether you will be financing college for your kids - if so, you may want to look at a Section 529 plan to save on taxes.


Without knowing all your details, I basically agree with Lola.

If you are paying more on your debt (including your mortgage) than you can reasonably expect to earn on the money when its invested, then pay down the debt.

Next, fund your retirement as best you can. Roth IRA is probably best. Now what do you do with the $$ once its in the Roth, that depends on your overall preferences. Personally, I believe this is a great time to enter the stock market, because it is beaten down and will eventually rise.

If you are not experienced, your best bet is probably a diversified mutual fund (with low fees).

If your retirement is somewhat well funded (which it sounds like its not), then think about a 529 plan for college savings for the teen. But do not put any money into college savings until your retirement funding is on track.

 

Zen Peach



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  posted on 2/28/2008 at 10:33 AM
quote:
If you are paying more on your debt (including your mortgage) than you can reasonably expect to earn on the money when its invested, then pay down the debt.

Gotta disagree with paying off mortgage (unless you have some crazy financing going on). I'm not a financial advisor but the one's I've talked to have indicated that mortgage should not be included when paying off debt since they offer tax advantage. Best bet is to invest in something for your future and continue to make your monthly mortgage payments (if you have a high rate and can refinance to something lower you may want to put some of the money there but not all). And somebody else here mentioned something wise - sock some of your funds into some type of account with easy access (6 month living expenses emergency fund account)

 

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Peach Master



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  posted on 2/28/2008 at 10:36 AM
quote:
quote:
I'll second the pay down or off your debt, it will make your daily life so much easier.
I cashed out a 401K, and after I paid taxes and penalties, I paid off some debt. Wasn't long after that, the debt got run right back up....and then some. So now, I am 30K behind in my retirement fund and stil up to my ass in debt.

DON'T PAY DOWN DEBT WITH IT. Put the majority of it away for the future. We are in uncertain economic times.


BD: Not to pick on you, but for anyone reading this thread----

Please do not cash out your 401K early and pay taxes on the withdrawal unless it is absolutely necessary.

The money in the 401K is worth much more to you than “regular money,” because the 401K money earns interest (or stock gains) free of taxes until you eventually take the money out of the 401 k. (Then you pay taxes on the money when you take it out of the 401K.)

That tax deferral really puts a lot of money in your pocket over the long haul.

If you take the money out of the 401K early, not only do you lose the benefit of those deferred taxes, but you pay penalties.

And for anyone out there on the young side (say under 35), you will do yourself a world of good by contributing to your 401k early in your career. Due to the compounding effect, putting money in when you are younger is worth way way way more to you than putting it in when you are older.

And always always put in at least enough to take advantage of your employer’s “match.” They want to give you free money---please take it!

 

Extreme Peach



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  posted on 2/28/2008 at 10:55 AM
i'd do an 80/10/10 split

- invest 80% (yes, dollar cost averaging rocks!)
- pay down debt with 10%
- spend 10%

You can get some nifty toys for $6500. i'd get a custom gibson and a custom fender amp from lord valve.

 
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