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How would you invest a quarter million dollars?

whatshouldido 10 June 15, 2013 at 10:11 AM
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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

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#16
Quote from slayu View Post :
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.
What's been your verifiable track record?
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#17
Quote from larrymoencurly View Post :
What's been your verifiable track record?
I'm not a professional advisor and this is not a board to get professional advice either. I'm just a long time trader that does know a thing or two about cycles.

You decide for yourself what you want to do with your money. I've just outlined my thoughts.

Good luck!

Edit: I did nibble on a few gold bullion bars this afternoon. Next level to accumulate for me is $1089.

P.S: I've been buying gold since it was $780 and will never sell a single ounce (unless i've to). I plan on passing this to my kids (when I've them Smilie)
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#18
I would follow the suggestion that you wait until you figure out what you want to do. Housing is supposedly starting go up, but I believe it just a reaction to mortgage rates going higher. Plus spring is not the time to buy a house. Winter usually offers the best buying opportunities. As to buying rental properties, are you willing or capable of being a landlord?

If you decide to invest in any market, as people have mention, use dollar cost averaging. Which simply means buying a little each month or whatever time interval you set up. Going all in at once can be hazardous.

Definitely max out your contributions to your retirement fund at work. A little now goes a long way later on. And of course have you set up an emergency fund? Good Luck on your decision!
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#19
buy gold its dropping but it will come back
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#20
Quote from feeldeal View Post :
buy gold its dropping but it will come back
If a person's entire fortune was $250,000, how much of it should be invested in gold?
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#21
Well, I havn't done anything yet, but here is what I'm planning on doing:

Put about 130k in the stock market on blue chip companies... seeing how the market has been dropping for the last few days, I'm going to start buying in.

Save another 50-70k in the piggy bank.

Spend about 30-50k on starting a business. Yes, I'm willing to put in the extra overtime effort off my normal job to start a side business, developing an electronic product.
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#22
Quote from whatshouldido View Post :
Well, I havn't done anything yet, but here is what I'm planning on doing:

Put about 130k in the stock market on blue chip companies... seeing how the market has been dropping for the last few days, I'm going to start buying in.

Save another 50-70k in the piggy bank.

Spend about 30-50k on starting a business. Yes, I'm willing to put in the extra overtime effort off my normal job to start a side business, developing an electronic product.
Sounds like a good plan, but I don't know if it's better to buy individual blue chip stocks or just invest in an S&P 500 index fund.

Good luck with your electronic product.
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#23
Not in the stock market
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#24
Get out while you can. If I had a quarter mill Id be down in some small warm country with no natural resources to be plundered or strong political or religious leanings.

Belize, Costa Rica, South Africa, etc. are all better choices than continuing to live in the U.S. Anything american you invest in, except maybe guns, oil and churches, are going to be bad investments.
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#25
If I had 250k dropped on me today, I'd probably hold it in cash for now, like some others have hinted at.

I have a few picks that I estimate will be ripe for purchase around Sept-Oct timeframe. But generally, I'm too afraid to buy anything right now--I think we have a good 10 months before I'd be brave enough to buy anything.

ON THE OTHER HAND, if you have any opportunity to invest in something that you can really control, such as a low-risk business (like one you're already operating), etc. then I'd seriously consider that. It seems so much more promising than the market these days.
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#26
Quote from whatshouldido View Post :
Well, I havn't done anything yet, but here is what I'm planning on doing:

Put about 130k in the stock market on blue chip companies... seeing how the market has been dropping for the last few days, I'm going to start buying in.

Save another 50-70k in the piggy bank.

Spend about 30-50k on starting a business. Yes, I'm willing to put in the extra overtime effort off my normal job to start a side business, developing an electronic product.
If you've already decided putting 130k into the market, consider splitting up your purchases and buy monthly just in case you catch yourself still in a down swing. I also like the suggestion to get an S&P500 fund. Also would consider Berkshire Hathaway "baby B's"
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#27
Quote from whatshouldido View Post :
Well, I havn't done anything yet, but here is what I'm planning on doing:

Put about 130k in the stock market on blue chip companies... seeing how the market has been dropping for the last few days, I'm going to start buying in.

Save another 50-70k in the piggy bank.

Spend about 30-50k on starting a business. Yes, I'm willing to put in the extra overtime effort off my normal job to start a side business, developing an electronic product.

Instead of individual stocks, you should consider market index ETFs such as IVV or SPY (both are SP 500 market index ETFs, SPY have slightly higher expense ratio but at the $$ amount you are considering investing its a negligible difference)
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#28
I'd put 20% down on a home - you have to live somewhere and you might as well pay off your own mortgage rather than somebody else's (as you would be doing if you continue to rent). Housing prices are still affordable and interest rates are still low. If you wait a year, you will end up spending a lot more money, most likely, or possibly be priced out of the market (depending on where you live).

I wouldn't necessarily jump into the stock market right now - your timing is a little off. Prices are high.

Personally I would take some time and learn as much as possible about starting a business and developing a product before actually jumping in and doing it. Knowledge matters - it tremendously increases your chances for success. And allows you to take some time to plan intelligently instead of rushing in. Take classes, read books, participate in forums and learn from and avoid the mistakes of others who've done what you want to do. Prepare. Then do it.

Stick the money in the bank, and maybe start getting into the market slowly by doing some dollar cost averaging. Max out your retirement funds. And leave it alone. It's nice to have a decent cushion.
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