Forum Thread

How would you invest a quarter million dollars?

whatshouldido 2 10 June 15, 2013 at 10:11 AM
Deal
Score
0
10,837 Views

Thread Details

I found out that I will be the recipient of an inheritance that will be worth a little over $250,000 after taxes.

How would you invest that money? I currently rent about $650 a month, so buying a house is a possibility. I currently work full time and pull in about $70k a year, no loans or long term debt. I live comfortably with monthly expenses ranging anywhere from $1000 - $1500 a month.

Invest in stocks? Blue chips? Small cap? Startups? Angel investor? Buy a house with little/some/alot of down payment?

27 Comments

1 2

Sign up for a Slickdeals account to remove this ad.

Joined Sep 2006
L10: Grand Master
10,112 Posts
1,270 Reputation
#2
Jane Bryant Quinn recommended keeping such money in an absolute safe place for the next 6-12 months while you learn about money. Absolutely safe places include FDIC insured bank accounts, money market mutual funds, and US Treasury Bills. You want something that's not only 100% safe but also lets you take out your money without any fees or penalty.

If you later decide to invest in something riskier, ease in over 12 months, rather than dump all the money into them at once.

Read John Bogle's books, like Bogle On Mutual Funds. Also read Larry Swedroe's columns at Moneywatch.com (easier to find by Googleing than by searching that website). Don't spend much effort trying to find investments that will beat the market because that's really hard, and the vast majority of "experts" who say they've done it actually have not.
Reply Helpful Comment? 0 0
Joined Jan 2005
Show me the money!
9,917 Posts
2,691 Reputation
#3
Here's my suggestion: decide what generally you want to do with the money (e.g. buy a house, invest short-term, invest long-term) then find a profession who specializes in that.
Reply Helpful Comment? 0 0

If I try, I might fail. If I don't try, I will fail.
# # # # #
Life is not about waiting for the storm to pass ... it is about learning to dance in the rain.
#4
Take a small portion for yourself now and use it how you want. Then put the rest in a retirement fund.
Reply Helpful Comment? 0 0
#5
I would personally split between stocks and real estate.


Reply Helpful Comment? 0 0
Last edited by FrostZone June 18, 2013 at 04:54 AM
#6
I would personally buy a house with 20% down then buy investment properties with 25% down.
Reply Helpful Comment? 0 0
Joined Jan 2008
L10: Grand Master
7,332 Posts
487 Reputation
#7
Willing to venture out on your own and open up a business?
Reply Helpful Comment? 0 0
-The San Francisco Bay Area, commonly known as the Bay Area, is a metropolitan region that surrounds the San Francisco bay in Northern California.
-The Bay Area is home to approximately 7.2 million people.
-The San Francisco Bay Area is one of the wealthiest regions in the U.S.
Joined Sep 2006
L10: Grand Master
10,112 Posts
1,270 Reputation
#8
Quote from heavylee View Post :
Here's my suggestion: decide what generally you want to do with the money (e.g. buy a house, invest short-term, invest long-term) then find a profession who specializes in that.
A professional for investment advice can be risky, or at least unnecessarily costly, and choosing one requires about as much knowledge as is needed to make investment decisions on your own.
Reply Helpful Comment? 0 0

Sign up for a Slickdeals account to remove this ad.

#9
While Short term treasury bills are close to 100% safe, Money market mutual funds are not. Either way, stocks that provide dividends are nice for a longer term option.
Reply Helpful Comment? 0 0
#10
Quote from whatshouldido View Post :
I found out that I will be the recipient of an inheritance that will be worth a little over $250,000 after taxes.

How would you invest that money? I currently rent about $650 a month, so buying a house is a possibility. I currently work full time and pull in about $70k a year, no loans or long term debt. I live comfortably with monthly expenses ranging anywhere from $1000 - $1500 a month.

Invest in stocks? Blue chips? Small cap? Startups? Angel investor? Buy a house with little/some/alot of down payment?
#1. Regardless of anything else: Set up your emergency fund first and foremost.

#2. It depends on how old you are. (No one has seemed to mention this part yet.)

If you're far from retirement, and don't have a place of your own, but know you'd like to settle in the location you are at, get that done with first. Pay enough down payment now to get your mortgage rates as low as possible.

Otherwise go find some newly built shortsale properties which can be cashflow positive investment property (condo / townhome) and start renting that out. Allow this to generate income for you the rest of your life. As that gets paid off, use that equity to purchase your next, etc. Wink

If you're closer to retirement, it's probably better to keep it more liquid which will be easily accessible when that time comes around.
Reply Helpful Comment? 0 0
Joined Dec 2008
L10: Grand Master
6,316 Posts
1,470 Reputation
#11
I like the home idea but do not put all the money into it. Only 20%.
Reply Helpful Comment? 0 0
#12
You can do something crazy like this guy http://www.youtube.com/watch?v=Airbq7bn0_o
Reply Helpful Comment? 0 0
Joined Sep 2006
L10: Grand Master
10,112 Posts
1,270 Reputation
#13
Quote from freddingo View Post :
While Short term treasury bills are close to 100% safe, Money market mutual funds are not. Either way, stocks that provide dividends are nice for a longer term option.
Dividend-paying stocks are much riskier than money market mutual funds, and I am referring to a well-diversified portfolio of such stocks.
Reply Helpful Comment? 0 0
Joined Nov 2006
disgruntled caveman
28,559 Posts
1,901 Reputation
#14
Quote from larrymoencurly View Post :
and the vast majority of "experts" who say they've done it actually have not.
Thats BS. They've all done it...



...it's just that they've done it for a random month out of the year. Not consistently over time. Hide
Reply Helpful Comment? 0 0
I heart slickdeals:

$12: 10 (good!) DVDs
$138: Zen X-Fi 32 gb
$4: ToyStory 1&2 BR/DVD + 2x TS3 movie tix
$45: 8 bags M&Ms+ 4Orville 6packs + 2 Redbox +3 blurays+ 2 DVDs+ 4 movie tix+ 1 Bisquick
$262: 50" LED TV
$281.99: mower+ 3 barstool+ 2 tailgate grill+ 6fertilizer+sawzall+4pillows+edger+swimsuit+2WiiU AfterglowPro +2sandals + sprinkler + 50' hose -- SYWR
One happy wife!
Running video game deal list: $155 bought me
3DS: DKCR, ALBW, PkmnY, MarioGolf, Starfox, FE:A
WiiU: NinLand, BatmanAC, AC4, W101, NG:RE, MK8, Pikmin 3, NSLU, 3DWorld, ZombiU
#15
Why put it in the market? The stock market is just staging a minor pullback at this point from a 5 year high pivot. There is really NO reason to be involved in the stock market (unless you are day/swing trading with tight stops). PERIOD!

My personal advice is to look for a place to buy (granted most places where I live have jacked up prices by 10% in just last few months). The rates have been going up also. Buying a home is an emotional decision and you have to decide for yourself whether it's something you want to commit to. Hard asset is something that you'll always have.

Additionally, I would start nibbling on some gold. Gold is in a severe downtrend, but that doesn't stop you from accumulating 1 troy oz bars every now and then. I'm personally looking for $1290 to start accumulating. Gold is not a bubble, not everyone owns it and it's been used since......I don't even know when!

So, yes..there it is. Buy some real estate, buy some gold (don't go heavy, just slowly accumulate), tuck away cash and when you see markets dump (trust me, this inflationary stock bull market will end this year!), then you can get involved in good blue chip companies paying dividends.

There is nothing better than to own hard assets in these times. Every country is printing money @ a crazy rate and this will not end pretty.
Reply Helpful Comment? 0 0
Page 1 of 2
1 2
Join the Conversation
Add a Comment
 
Copyright 1999 - 2016. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard