If you came into $30,000, how would you invest it?

Question

Serious answers please......

Answer 1

1) Pay down debt, highest to lowest interest rates. Do not take up this debt again - debt is bad (repeat this over and over). It is not possible in my mind to get a better return than getting rid of debt.

2) Get a "rainy day" fund set up equal to three months living expenses. Put it in an interest-bearing bank account and DO NOT RAID THIS FUND. It is meant for if you lose your job, or medical emergencies only.

3) Start with some conservative investments - savings accounts, Tbills and the like. The stock markets are kind of high still, and I would tend to want to save my early precious money.

4) Remember this - investments are not spent. Don't raid the money - if you spend it, it is gone.

5) Consider educating yourself. There are many books on investment that can be a great investment over the long term. Remember - nobody cares about your money more than yourself. No investment advisor will care as much as you do, and often it is not that difficult to outperform the vast majority of advisors with simple ETF's (exchange traded funds) and index mutual funds (but pay attention to the fees).

I have been slowly increasing my bottom line for 20 years now, and I am looking toward early semi-retirement.

Best of luck!

Answer 2

The first $4000 would go into a ROTH IRA. I would probably put another 4K into a short term CD that I would put into a ROTH IRA when it matures next year.

If you have a car loan, I would pay that off. Definitely pay any credit card debt. I would not pay a mortgage early unless I was certain that I would not need the money back before I sold the house.

If you don't own a house, but are in a position income and lifestyle-wise to handle a mortgage and stay in place 5 to 10 years, I would consider putting it towards a downpayment. If you are close, but not quite ready I would put the money in a short-term CD or money market fund.

After that I would invest in a low cost index mutual fund. If good but average returns are good I would pick the S&P 500. If you want a little more risk and possibly return you might look for an international fund.

Answer 3

I would buy property. Use the money as a deposit. Either as a home for yourself or you could rent the house out. You'll see an investment over the next 5 years.

Answer 4

First, if you have a mortgage put it down on that, secondly any interest bearing account for short term until you study the market and it's advantages for your needs

Answer 5

$20,000 Roth IRA
$7,000 in stocks
$3,000 in Gold (Coins, or bullion)

I would use most of it in a Roth because I'm 43, and would want to seriously get started augmenting other retirement funds!