Investing...?

Question

If you came into a large sum of money how would you invest it? I think I would go with ROTH IRA's but you can only do $3000 a year and have to be making under $100,000 a year. Maybe throw in some mutual funds with that. What would you do?

Answer 1

Please, I implore you: Stay away from "wealth managers." These people are often scoundrels hired by large banks or other financial institutions to gain your confidence and then take you for lots of high unnecessary commissions and fees.

Empower yourself to manage this money by learning. Read John Bogle's "Bogle on Mutual Funds." Bogle founded the highly respected Vanguard Group.

Spend some time reading about investing, formulating your objectives, etc., at www.vanguard.com

And then go to www.bobbrinker.com to unearth a world of resources about investing. Listen to this radio show weekends on any of over 200 major radio stations in the USA. If you don't have a station in your area, listen on WLS Chicago. www.wlsam.com

This is the most important thing you can do: empower yourself to be your own investment adviser. You'll have one you can truly trust.

Answer 2

Go to www.fool.com and learn how. They have a teaching service that they offer for free, it's on their start up page.
A Roth IRA shelters your money from taxes when you take it out, but it doesn't invest it.
If it was a large sum, I'd talk to a couple of wealth managers and find one I trust. Otherwise, I'd learn about stocks, and then pick ten stocks for diversity, and invest the money myself. Or you can learn about mutual funds through magazines like Kiplinger's Personal Finance and pick some diversified mutual funds -- that way, you have a professional managing your money.