I am coming into a chunk of money... about $20,000+. Any suggestions on how to best invest this money?

Question

I am recovering from a messy divorce that has left me with bad credit, no retirement money and depleted savings. I am 38 and need to get back onto my feet soon. I live in San Diego Ca, where the median family home is about $560,000. Should I do a buckets of money thing for retirement, get into a REIT, CD etc or invest in an out of state investment property (if so where). Please give me some advice

Answer 1

First, you need to set asside about 3 months of income for emergencies. If your savings are low you need to set aside this amount of money incase anything throws you off your course (getting laid off, serious car wreck, etc.). I would place it in a seperate savings account that I wouldn't be able to touch. You need that much money "just in case".

Next, I would examine what your 5 & 10 year plans are. If you need to move into a home that you want to purchase in the next year, then you may want to keep that money liquid.

While you stated what the median income is for your area I don't have a good idea of what you make. I could give you more concrete answers with that information. And even if you did, I would still recomend seeing a financial advisor to make sure you have adequate insurance, etc.

Best of luck.

Answer 2

Take proper professional advice and pay fees for it rather than allowing someone to take commissions. The advice should run along the lines of: Pay off any debts including the mortgage Work out how much you are spending on cars, clothes and holidays Put some away in a cash account as a "roof needs repaired" type fund Invest some for the medium term Invest some for the long term Assets should be spread between equities, property, cash and fixed interest investments. Always get a second opinion and always remember that if it seems too good to be true - then it is! Good luck :)

Answer 3

Man, anyone serious is going to need some more info to give you good advice:

- What are your investment goals, in terms more specific than 'getting back onto my feet soon'? Income? Capital growth?
- What's your time horizon?
- What's your risk tolerance?
- How liquid do you want this to be?
- What are your current income and debt levels?
- Do you already own a home?

Without that info, everything from "plunk it into a CD" to "go to Vegas and put it all on "black" are all reasonable options...

Sorry I couldn't be more help, but there's no such thing as a sure investment, and certainly no single "no brainer" without more info.

Sorry about the messy divorce. Best to you.

Answer 4

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Answer 5

If you can afford to live without it invest it in a Life insurance policy. Over time the poilcy incures about 9-12% intrest per year. This is better than any bank or CD. Over about 9 years your money double. Not only does it take care of your family God forbid something happen to you but it is a tax free shelter. At a certain age you can start to borrow against the poilcy without penelty or taxation from the government.

Answer 6

The answer from Timothy W is the most solid here. I would personally seek advice from a financial advisor. My financial advisor gave me a "test" -- it was a short question & answer survey of my financial tolerances and it was an excellent education for me. I was able to determine how best to save/invest my money and that sort of thing. I found my financial advisor through my bank -- where I have a checking and savings account. He does not cost me anything, and his advice is paying off. Good luck to you!

Answer 7

Well you are already close to mexico if you speak spanish and know anything about construction small project housing which the goverment will buy from you or you can sell on your own cost anywhere from 18-22k to build and sells for 28-35k becuase the goverment supports the poor in buying these cheap houses they usually sell just about as fast as it takes to build them , and the border towns are growing steadily so you could do this over and over and over again if your only doing it right across the border you can stay in your house and not incur extra expences

Answer 8

Right now, I would suggest investing in the stock market, make some good money (talk to a good financial advisor), be somewhat aggressive, and in the next two years, invest in housing/property. By that time, real estate should have recovered.

Answer 9

Hi there. I am looking for investors in my company. I am willing to offer you a 7% return on your money, and pay you monthly interest via a promissory note. This means on a $20,000 investment, I would pay you $1400 a year for the use of your money (which I can pay monthly, quarterly, whatever works for you). Then, when your promissory note comes due, I will return your entire investment or rollover the note if you wish to do so. Please contact me if you're interested. Good luck...Leo [e-mail]

Answer 10

Move to an area in the U.S. where $20,000 goes farther than San Diego. If that is all you have it won't buy much as far as investments go. Use it for some debts, a better car, put it in savings for a rainy day.