How can I invest $80,000 good ???

Question

My dad just sold a property and gave me $80,000. Am 17 and don't know anything about investing. I don't want to just spend the money, or depend on my parents for advice. I want to invest it on something.

Answer 1

For a 17-year-old, the best investments would be:

1) a 4-year-degree (stay at home rent free--makes the $$ last longer). You can afford a new model car $15000 or less if you do this. It's worth it to have your own transpo. The reward is a $40,000 + career when you graduate.

2) Buy a house for $35,000-$50,000 and use the rest for repairs. It's possible to turn the house for over $100,000 a year or two later. You'll have to have your dad along to keep you from getting ripped off. After the first time you do it, you'll know enough to do it a second time for lower cost, you can make the repairs more quickly and efficiently, and you'll be a better judge of valueing the property. The second time you do it can be even more profitable.

3) If you're indicisive, put the money into a 3-year certificate that you can't touch and get some interest. (Don't take less than 4%.) That will give you about $3200 in interest per year.

4) School of hard knocks: buy some stocks. It's always a very valuable lesson to have your money drained right out of your investment leaving you with nothing. You'll remember the lesson as long as you live; think of all the money you'll save every time you remind yourself. (Too bad this is such an expensive lesson to learn).

Last year I bought Microsoft stock. You'd think you could make some gains from a company like them. 3/4% return. That's it. Dividends are below 1% and I had a tiny gain when I sold. Most savings accounts would have paid the same or better.

Not worth the risk.

Answer 2

First of all, keep at least 2 months of your net earnings somewhere they are immediately accessible, such as certain no notice ISAs or accounts, to serve as an emergency fund. This will reduce the risk that you will need to borrow, on expensive interest, should problems arise. Next, consider: Is it absolutely essential to avoid all risk? 'No risk' investments can return a lower amount than more conventional ones, often to the extent of not keeping pace with inflation. Very few of us need to eliminate all risk from our lives, and the attempt can be self defeating. If such is still your priority, read some of the other replies. Do you currently own a house, and have a mortgage on it? If so, overpaying the mortgage to the sum allowed without penalty is an excellent way to start, being tax efficient, certain, and usually providing a better return than other cash based investments. Consider buying a property to let out. There are risks there relative to what you asked for, but risk-free investment is an unrealistic hope, and should be viewed with suspicion. Property balances its limited risks against potential gains very well. Many thanks.

Answer 3

First, you're smart for wanting to invest it! What to invest in depends on what your goals, your time horizons, and your risk tolerance are. The following is a brief and concise response...

If you want to sock it away for retirement (highly recommended) and don't mind some fluctuation over a long period of time, then you should look into stocks, stock mutual funds, or ETF's (electronically traded funds). Consider your account type as well. Individual Retirement Accounts (IRAs) will grow tax-deferred while Regular accounts will be subject to taxes. There are steep penalties for withdrawing funds from an IRA prior to retirement, so put in what you don't plan to touch until retirement. Put any other monies that you might want to withdraw from prior to retirement into a Regular account.

For shorter horizons (5 years or less), consider bank CD's or Money Market Funds.

Seek the advice of your tax consultant for tax consequences and a recommended financial advisor for guided investment decisions.

Answer 4

Dear Poster,

Wow your a smart cookie not wanting to blow your dough!
Even though that is a ton of money more than I ever had and I am 43 years old I would say go to your bank..or any bank and seek these anwers ALONE.
Bring a pad and pencil to not only be taken seriously but to write down valuable information the banking community may offer!

Go in there with a respectful gracious postion but Remember YOUR IN CHARGE as to how this "meeting" goes!

You have power and the ablity to say Thank You I will have to serious think about all you have said and then WALK OUT!
Dont feel bullyied or wham boozled or anything to make a choice on the spot. If anyone DOES make you feeli like that YOU PROBALLY DO NOT want to turn over your cash to them..
Most most most important Listen to your own voice inside after gathering facts..Ultimately YOU will have to live with this very "ADULT" descion!
My best to you..
xox

Answer 5

Do not invest without financial literacy. Invest on increasing your financial knowledge until you are ready. 3, 6 ,9 12 months? Save in a CD first for a short period of time. Increase your knowledge. Then plan for your next step of investment. Either in property or paper assets. Both are good. Focus on either one first and then the next.

Answer 6

Invet it in a mutual fund. Go to Vanguard . com they have some very good mutual funds and you wont pay any commissions. Look at the Equity income fund and the S & P index fund. Get into 4 funds make one of thems The prime mony market fund it is like having a savings account, But you are only 17 so you will need your father to set it up for you untils you are 18 then it can go into your name. Also get some bank CD's. Good luck.

Answer 7

First, congratulations to the decision not spend it all out ! You can make a fortune from your $80 000 if you invest - Forex that is , but only with http://4xgenie.com services. You'll get week for free to sort of try it all out, see for yourself how it works(and it does:-) ) If you want to try it - use MSMS555 promo code when signing up ( no credit card needed) . Good luck.

Answer 8

Stock Market, be diverse and have a few. Perfect way because when one is down then there could be one thats doing great, dont be nervous though because whatever you invest will pay back nicely. Good luck!

Answer 9

Hi,

Since you are young best investment would be your education. Every dollar invested in education returns you in thousands...

You should diversify your funds. Invest some amount in conservative way and ssome in agresive.

The most profitable business is forex and shares trading and it is most exiting business I know.

Why don’t you start your own forex or shares trading? I could introduce you to one brokerage company in Austria that allows to trade online from same account currency (forex), commodities, metals and cfd on shares. Total 500 instruments available; spread for currency pairs from 1 pip for shares from 5 pip. Commission for cfd from 0.15%; rollover – 0 USD. Very small initial deposit required. Terminal: MetaTrader 4 with free charts and many technical indicators.

Currency (forex) trading is attractive because it is very high income due to leverage and you could trade from any place in the world at any time from Sunday night to Friday night. So you could create really huge income.
Forex is an agresive form of investment so invest about 12-20%

Another way you could find trader who accepts private investments and invest with him/her.

If you are interesting and/or have any question please pm or e-mail me (press on my name) and I provide you with further information.

Good luck!

Answer 10

I suggest you to open a brokerage account at E*Trade and then drop me a line if you need more detailed FREE Financial Help.

Top 4 Answerer.