I'm selling my home in New Orleans & going to college. I will probably make a profit of around $40K. When I move I will be paying for all my personal expenses and paying $350 rent. I haven't decided if I want to go for a 4 yr degree or an 8 yr degree, but I do know I can blow $40,000 fast.
What can I do with my earnings to make it grow without it affecting me getting grants or student loans for tuition or annual taxes?
I also do not intend on working during my college career because it will inevitably affect my grades.... that's just how I am & I don't want to let that happen this time.
btw I decided to sell this property because who knows if the next hurricane may blow my house away entirely & I am just not ready or willing to take that risk.
2006-07-03 14:58:17 · 21 answers · asked by melissa13182 3 in Business & Finance ➔ Personal Finance
I would put it in solid growth stock mutual fund and a solid international fund. I'd recommend Vanguard or Fidelity. Look for a fund with a 5 year track record and no load. If you want specific fund recommendations, e-mail me.
2006-07-03 15:01:59 · answer #1 · answered by Sir J 7 · 1⤊ 1⤋
Your question has a multitude of answers. But the best place for money is in income producing real property. Rather than paying $4,200 a year or $16,800 in four years. Owning a duplex by putting a small amount of the money as a down payment would give you tax deductions and income from the other house.
Zero Coupon Bonds would also be a good investment for about $7,000 and they could mature in five years when you are graduating. Once you are good at that, try investing in real estate notes. They follow the same principles are real estate but you are not the owner just the bank. You can buy a small note $10,000 for $5,000 to $8,000 and set-up a nice income stream while you are in school. Have good insurance on the houses you own and get a flood insurance policy if you are in a flood plain.
Good Luck
2006-07-13 18:09:49 · answer #2 · answered by teenriodoll 3 · 0⤊ 0⤋
In 2006, you can put $5000 in a Roth or regular IRA. You need to decide based on your income. For a younger person, I would lean to a Roth, but not knowing your financial situation I can’t really say.
The market has been very volatile lately, and the reasons for it are still in effect. I think your best bet is put all your money in CD’s for the next 6 to 9 months. Putting some in 3 month, some in 6 months and some in 9 month CD’s. Then I would spend my time really learning about mutual funds and ETF’s. When it come times to take your money out of CD’s I would invest in high dividend funds and If you really need the money to live on, try to live on the dividends only. It takes a long time for the average person to save $40,000, it would be a shame to spend it on living expenses.
2006-07-03 23:36:41 · answer #3 · answered by yeeooow 4 · 0⤊ 0⤋
Put as much as you can in an IRA. That generally isn't considered by the Financial Aid Office. You need to find out if the $40,000 will be considered as an asset by the college you attend. If so, by a new car, cars aren't counted as assets.Invest 20% of what's left over in a Vanguard S & P 500 index fund, the rest keep liquid in a T-bill or money market fund. Always have at least $2,000 in your checking account. Eliminates worry over bouncing checks.
2006-07-17 16:03:15 · answer #4 · answered by Superstar 5 · 0⤊ 0⤋
Wow, I really don't think you'll have too much to invest. With rent of $350, thats $4,200 of your money a year so that has to stay liquid...in the bank. What about food? Transportation? Tuition? Books? Cost of anything else? $40k is not alot. Put $20k in a 6 month 5% CD. Not much else I can tell you to do without knowing the particulars.
2006-07-17 15:53:01 · answer #5 · answered by Matt G 2 · 0⤊ 0⤋
Since this is money that you will need over the next few years, do NOT invest in the stock market. If you want to have about 1/4 of the amount each year for 4 years, or 1/8 of the amount each year for 8 years, then divide the money and put it into CDs that mature each year.
2006-07-03 22:05:04 · answer #6 · answered by Diane D 5 · 0⤊ 0⤋
Safest and wisest thing to do would be buy an annuity that will pay you a fixed monthly income for a set number of years. Include a couple years after you plan on finishing college as you may not get a job right away.
2006-07-19 16:41:25 · answer #7 · answered by acmeraven 7 · 0⤊ 0⤋
I suggest you to open a brokerage account at TD Ameritrade and invest in the Stock Market with the help of a Portfolio Manager like myself.
Drop me a line if you need more detailed FREE information.
Top 4 Answerer in Business & Finance. (Vote for me)
2006-07-04 00:57:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
if this cash is just "rattling around" in your checking or savings account at your local credit union, it WILL be counted as an asset and WILL affect your eligibility for educational grants...it MAY affect your elgibility for student loans...
also, if you sell the house for more than your original basis, you will have capital gains taxes if the gain exceeds a certain threshold...contact the IRS at their 1-800 help line for advice and specifics regarding the thresholds for capital gains
2006-07-19 11:46:45 · answer #9 · answered by panti-slave2006 5 · 0⤊ 0⤋
Invest in a chinese factory of electronics, no tax, no nothing. You get your profit, sell on line, or go forex out side of USA, in a Hong Kong office, you will make money too.
I do that for a living.
2006-07-03 22:02:03 · answer #10 · answered by intellijuan 2 · 0⤊ 0⤋