I recently came into a small amount of money (about $20,000) and I don't want to spend it all, I wanted to know if anyone had ideas about what the best thing to do with it is. I was thinking a high interest savings account. I don't want a cd or anything, we are planning on using the money as a down payment on a house. Are there any other options for it?
2006-10-24 04:51:18 · 17 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
First of all money is evil. You need to put it in a checking account and write me a check for $20,000.00. I will dispose of that evil money for you. You can thank me later. I'll be in Hawaii.
No, just kidding.
If I were you I would look into investing in Gold right now. I heard that it is doing pretty good with a great future.
2006-10-24 04:55:57 · answer #1 · answered by RIDLEY 6 · 2⤊ 0⤋
I think that your best bet is to put it away in a savings account. I am not sure what types you have over in the US, but broadly, the higher the interest you receive, the longer notice you may have to give so which account will depend on when you might need the money. A down payment on a house is a good idea - it will allow you to move a nicer neighbourhood than you may be able to afford now or it may buy you a bigger house. It might also be worth setting aside a little of the money (say $300 -) to treat yourself to that new "ipod" or something you've always wanted but didn't want to use your own money on.
2006-10-24 04:55:53 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A Roth IRA is a good way to save your $$$ tax free. You can, if qualify, invest in a Roth IRA and your $$$ will grow tax free. After 5 yrs you never will pay tax on Roth IRA. Also you can always get at your principal, you just can't take your gain out. Remember this is a retirement account and there are Rules that go with that. The key here is the tax free growth on your $$$, and the tax free withdrawal in future. You can not get that in a CD or most products from a bank. Remember though to invest in a ROTH IRA you must have qualified income. You must have a job that pays you at least the amount you will invest into your ROTH IRA.
2006-10-24 05:40:48 · answer #3 · answered by Paul Y 1 · 0⤊ 0⤋
You just answered your own question, buy property!
Also adding ing orange to you account now will help interest rates, and leave your money free to use as a down payment when you find your new home..
But, the way I looked at it inheritance money was an unexpected gift, ..I gambled on several things with it, won some lost at others..have fun and remember to donate some in the name of the person who left it for you!!
2006-10-24 04:55:50 · answer #4 · answered by kat k 5 · 0⤊ 0⤋
Sometimes you can get better rates with a money market account. If you like your current bank ask them. It will be easier to to transfer money if it is all at the same bank. But check rates at competing banks they range from 1% to 5%. On-line banks are pretty easy to apply for but you should check out what you need to do to get the money out and close the account. It probably won't be a same day thing like a local bank.
2006-10-24 05:25:32 · answer #5 · answered by Richard B 1 · 0⤊ 0⤋
It’s very common to place certain restrictions on when a minor can have access to monies either tby a will or even a settlement, it sounds like until your are 26 you are at the will of the brother, That said the brother has a fiduciary duty to you, you have a right to see a yearly accounting of your monies, if the will stated educational purposes and he refuses to pay for education he is in breach of his fiduciary duty You may need to seek a lawyer to review the will, to review how your trust is set up holding your monies, better be in a trust and not under the brother’s name, and what exactly educational expenses are allowed
2016-03-28 06:06:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋
high interest account usually only give you about 5% , if i was you id find some land maybe an acre and buy it , property is a really good investment tool, recently my parents bought 1 acre in Fl. for 19,000 their last offer was 380,000 but they didnt take it bc the same size property wen t for 3 million about 6 months ago.
2006-10-24 05:00:32 · answer #7 · answered by someone_you_wish_you_knew 3 · 0⤊ 0⤋
An interest bearing savings / money market is account is the appropriate investment vehicle considering your short-term time horizon. www.gmacbank.com is paying 5.25% now, and www.bankrate.com compares several other banks. Might as well get the highest rate you can!
2006-10-24 05:39:41 · answer #8 · answered by Tony M 2 · 0⤊ 0⤋
Your best bet is an indexed annuity, you can't lose money if the market goes down. If your not in a hurry to buy a house. look for one with no down payment. Check mls listing in your city .
2006-10-24 04:56:31 · answer #9 · answered by tom_nearhood 3 · 0⤊ 1⤋
Open an orange account with ING Direct. You can do it online and the interest rate is great. Congrats on the windfall!
2006-10-24 04:53:34 · answer #10 · answered by Christabelle 6 · 1⤊ 0⤋