My grandmother left me a fairly large sum of money in her will recently, and I was looking for some advice on where to invest it. Whilst I do have some small sums tied up in the stock market, this is more than I'd be willing to risk on that. So what are my options? Most savings accounts offer shitty returns and require me to lock up my money for 5 years or so to get anything worthwhile, which I don't really want to do in case I need a car or something once I graduate university. What do the more financially inclined forumites suggest?
horse racing
You can't have low-risk, high-return, liquid investments all rolled into one, so I would get some more appropriate expectations first.
Shares being one of the safer investment options and too risky doesn't leave much except Bonds, property or cash.
Property (depending on how you use it), isn't exactly liquid, cash doesn't have any real returns, which leaves bonds. Government are your safest bet, and with interest rates at pretty low levels and expected to rise its your best bet.
Property (depending on how you use it), isn't exactly liquid, cash doesn't have any real returns, which leaves bonds. Government are your safest bet, and with interest rates at pretty low levels and expected to rise its your best bet.
Talk to a financial adviser. I would recommend looking into a high yield bond mutual fund personally.ghettoperson wrote:
My grandmother left me a fairly large sum of money in her will recently, and I was looking for some advice on where to invest it. Whilst I do have some small sums tied up in the stock market, this is more than I'd be willing to risk on that. So what are my options? Most savings accounts offer shitty returns and require me to lock up my money for 5 years or so to get anything worthwhile, which I don't really want to do in case I need a car or something once I graduate university. What do the more financially inclined forumites suggest?
Last edited by JohnG@lt (2010-08-30 09:06:03)
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
EDIT: @FM
I'm fully aware of that, however you used to be able to get reasonable interest rates on savings accounts, which you no longer can. And you may be right, there are no good options.
I'm fully aware of that, however you used to be able to get reasonable interest rates on savings accounts, which you no longer can. And you may be right, there are no good options.
Last edited by ghettoperson (2010-08-30 09:05:51)
Talk to a financial advisor...someone who gets paid to help you.
Why pay someone when I can ask the internet for free.
You get what you pay for.ghettoperson wrote:
Why pay someone when I can ask the internet for free.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
bonds, mutual, Start an IRA.
I stood in line for four hours. They better give me a Wal-Mart gift card, or something. - Rodney Booker, Job Fair attendee.
Or just keep it in a savings account and be happy with what you have instead of effectively gambling it away. Otherwise go pay a professional to give you advice if you want to go down the gambling route. There are whole industries set up just for this.
Diversify your bonds niggah.
Invest in companies/industries you know about.
Invest in companies/industries you know about.
Open up an mma gym in my town.
Invest in large quantities of legal highs, wait for them to become illegal and then sell them.
Invest in large quantities of legal highs, wait for them to become illegal and then sell them.
Personally I would buy an apartment and give it on rent. Depends about how large of a sum we a re talking about.
Ok.ghettoperson wrote:
Why pay someone when I can ask the internet for free.
How much do you currently make?
How much are your monthly expenses?
Do you have any large expenses in the near future? Far future?
Are you going to get married? Will your spouse work?
How many kids do you plan to have?
When do you think you will be retiring?
How much money is coming from your grandmother?
How much debt do you currently have?
What is the value of your assets? How much is liquid?
Are you currently investing? How much? And what's in the portfolio?
How's your health?
Since you mentioned not tying up the money for expenses like a car, I assume the amount isn't really significant enough to really make any significant money. And as such, factoring in your age, I'd just put the money for long term low risk gain. The market is gonna get into some interesting twist and turns soon, so playing short term in the near future wouldn't be advisable. Also, did you factor in inheritance tax?
It's not a gigantic sum, no. It will most likely be used for the down payment on a house in a few years time, but I don't really want to be paying huge amount of interest on a loan for a car if I need one, when I have money in the bank I can't access.Ilocano wrote:
Since you mentioned not tying up the money for expenses like a car, I assume the amount isn't really significant enough to really make any significant money. And as such, factoring in your age, I'd just put the money for long term low risk gain. The market is gonna get into some interesting twist and turns soon, so playing short term in the near future wouldn't be advisable. Also, did you factor in inheritance tax?
And use one room to cultivate... good idea sup..Sup wrote:
Personally I would buy an apartment and give it on rent. Depends about how large of a sum we a re talking about.
Damn straight.ghettoperson wrote:
EDIT: @FM
I'm fully aware of that, however you used to be able to get reasonable interest rates on savings accounts, which you no longer can. And you may be right, there are no good options.
I used to get 14% on my National Savings account back in the day...
Now you're lucky to get 2-3%.
I'm supposed to be inheriting a decent sum too - once we (the rest of my family and I) take my grandads crooked, cheating bitch of a wife to court that is....
I'd go with stocks. They're a good bet. You can make loads and if you don't, you have no one to blame but yourself - I hate the idea of handing my money over to someone else who could potentially lose it.
a fan of Dave chapplle ?Cybargs wrote:
Diversify your bonds niggah.
Invest in companies/industries you know about.
Talk to proffesionals, Be ready to walk out if you get a bad vibe. You might have to meet with two or three before you meet one who makes you feel ( right ) Don't let tham push you into something you aren't comfortable with. If it seems to good to be true. . . ..ghettoperson wrote:
My grandmother left me a fairly large sum of money in her will recently, and I was looking for some advice on where to invest it. Whilst I do have some small sums tied up in the stock market, this is more than I'd be willing to risk on that. So what are my options? Most savings accounts offer shitty returns and require me to lock up my money for 5 years or so to get anything worthwhile, which I don't really want to do in case I need a car or something once I graduate university. What do the more financially inclined forumites suggest?
Last edited by Hunter/Jumper (2010-08-30 14:13:32)
Good professionals cost lots of money. Not worth it unless investing 6 figure sums.Hunter/Jumper wrote:
Talk to a proffesional, Be ready to walk out if you get a bad vibe. Don't let tham push you into something you aren't comfortable with. If it seems to good to be true. . . ..ghettoperson wrote:
My grandmother left me a fairly large sum of money in her will recently, and I was looking for some advice on where to invest it. Whilst I do have some small sums tied up in the stock market, this is more than I'd be willing to risk on that. So what are my options? Most savings accounts offer shitty returns and require me to lock up my money for 5 years or so to get anything worthwhile, which I don't really want to do in case I need a car or something once I graduate university. What do the more financially inclined forumites suggest?
What are your car loan rates on your neck of the woods? Over here, dealers are bending all over backwards with all kinds of deals, even 0-2% interest loans for 4-5 years.ghettoperson wrote:
It's not a gigantic sum, no. It will most likely be used for the down payment on a house in a few years time, but I don't really want to be paying huge amount of interest on a loan for a car if I need one, when I have money in the bank I can't access.Ilocano wrote:
Since you mentioned not tying up the money for expenses like a car, I assume the amount isn't really significant enough to really make any significant money. And as such, factoring in your age, I'd just put the money for long term low risk gain. The market is gonna get into some interesting twist and turns soon, so playing short term in the near future wouldn't be advisable. Also, did you factor in inheritance tax?
Brokers are only interested in commission. If you are in it for the long term, they aren't interested in you. If they can pick the best stocks, why are they still brokers? Seriously, if you aren't going to do your own serious research, stick with Vanguard and Fidelity. You can't trust Moody or Morningstar anymore.
Buy BP stock. It's way undervalued again now.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat