I am getting a lump sum of money. What are the best ways to invest?

Answer 1

Do you have a house?

Answer 2

I would split it into thirds,

Short-Term, CD if you need money within six months to a year you my as well earn interest.

Medium Term, Safe Mutual Funds Some of these can be excellent, ask an investment management group about these.

Long Term, IRA These are the best for your money, but they should really be left in the account until you retire...compound interest the most powerful force in the universe according to einstein.

Also consider Real Estate in growing areas.
The market has slowed and depending on where you live or wish to purchase property contact a reputable realtor and do research on your own if you can. It isn't a fantastic time to invest unless you know what you are doing, keep an eye on the interest rates and for cash purchases you may want to wait to see the prices come down a little, but give some research into areas you would like to have property. Historically speaking real estate is an excellent investment.

The more you spread your funds the safer they will most likely be.

Answer 3

A "lump" sum of money can bring about drastic changes to your life. There is no "best" way to invest. The #1 question I ask all my clients is; what do you want your money to do for you? Obviously a lump sum of money will bring about changes of your financial future, so first if you have an advisor, have your portfolio looked at globally. This includes not only your investments but retirement, life ins., disability, long term care, health ins, IRA, 401(k), and your own legacy (which is much more than just leaving a will behind). If you do not currently work with an advisor that already does this for you, you may want to look elsewhere. If you would like additional information feel free to email me, considering our firm was the pioneer of financial planning in the industry and has longest track record of doing so. Hope some of what I said helps.

Answer 4

Theres a great way to invest money, theres some real estate company's that will gave up to 15% interest of you investment, I know because I work for one, and also i got some money invest with this company. Let me explain how it work, I work for this company call Real Estate Wishes, LLC. I began with a investment of $5,000.00 I signed a contract that expecified that in a period of one year I will get back my investment plus a 15% more on interest, If you think about, how much interest does the bank will give you? and how long it will take? I got back $750.00 in just interest, and the best they dont have any kind of fee, so I took the $750.00 to my pocket, and then put back more money I put about $10,000.00 right now with the company, I got about 3 more months before I get my money and everything that i gain. Trust me is a great way to invest money in a short period of time. Here is the website for my company www.realestatewishes.com any question you can contact me at 787-550-0242 ask for Otis.

Answer 5

I would go to a tried and true investment firm, such as Edward Jones, CIBC, or RBC and open up a non registered account. From there, they will diversify your money with a mixture of good quality mutual funds and excellent stocks. EX: Johnson and Johnson, Microsoft , Manulife financial. Actually they will look at your whole financial situation and goals. age of retirement, insurance etc... I good financial adviser will work with you to come up with a plan to make your dreams come true. If you do not have an 401k you should consider starting one of those also. It is best to keep contributing to it, on a pre authorized monthly plan to take advantage of the power of compound interest. The tax break is nice also. Hope this helps

Answer 6

Get your retirement set. Put 75% of it in a mutual fund within an IRA.

Put 1/2 of the remaining 25% in easy access savings account, emergencies happen and the other 1/2 in a stock that you did your homework on before buying through an online broker such as "scott trade".

Answer 7

I would just like to say that I'm proud of you for starting out by asking how to invest your new-found money - as opposed to how to spend it. And you should be proud of yourself, too. Most people take new-found riches and p!ss them to the wind. You are already off on the right track, by expressing interest in saving, preserving, and investing your money. Many people who come into big money (take many Lotto winners as an example) are so foolish with their money, that a year later, they are flat broke and unhappy.

My personal experience (I received a large lump sum amount from the sale of some family estate property): I immediately put most of the money into FDIC insured bank CD's (at varying terms of 6 months to one year, yielding approximately on average 4.5 percent), and left just enough "liquid" cash so as to be able to cover my usual living expenses, oh, and the tax bill which came up later (don't forget taxes!).

Now, the reason I "locked" the money away into insured CD's was exactly that: it safely LOCKED up my money, so it prevented me from going out and blowing it like a drunken sailor on shore leave. This gave me time to collect my thoughts, and work on my personal fiscal discipline, so that I developed a huge appreciation for the money. Later, as those CD's came due, I was VERY careful not to blow it on stupid things. Like, for example, I really wanted a new pickup truck, but during the "lock-up" period, looking and drooling at all the Chevy truck brochures, I slowly realized that I didn't NEED a new truck, because my 1994 Chevy Silverado was (and still is) running just fine, and to trade it in for a new one would have just been, well, a form of trophy shopping.

I'm currently very carefully dribbling the money into dividend paying stocks, bonds, mutual funds, precious metals, and yes, still those FDIC insured CD's, because you can't sneeze at the security and safety of CD's that are paying north of 5 percent interest nowadays.

What I learned, during my "lock-up" period, is that money is very hard to come by, and you should value a lump sum or windfall of money as if it's a gift from God. Because many in the world have NOTHING, and I am glad and relieved for my good financial fortune. I feel as if fate smiled upon me. But I will always share some portion of it, too, with the less fortunate - in ways too numerous to recount here. So, in closing, be glad for your money, invest it wisely, spend it frugally, but don't forget that we all need to have a charitable side to us, so don't let your money turn you into a mean old miser!

Good night, and good luck. Col. Kurtz.

Answer 8

The best thing is to get a financial coach to help you with it and make him or her show you what your money will grow in time compare and see where you will get the best rate of return on you money.

Answer 9

put a 3rd of it in a IRA account for 5 years. while doing so hope and pray that the property value has decrease for you to purchase and than draw your funds out and invest in property with your money.

Answer 10

Real Estate & Stock Market

Answer 11

Put together a plan. Determine what you have and what you want first. Then it will be alot easier for you to figure out what you should do.

Then go to a professional and explain your situation and you will be good to go!!!