I have my Roth IRA maxed out at $4,000 already, a 529 college fund started for my son. However, I don't know what to do with my extra money? HELP ME!!!
2007-01-23 06:24:25 · 10 answers · asked by Anonymous in Business & Finance ➔ Investing
Does your employer offer a 401(k) plan? If so, that may be the best place to contribute. You get the tax-shelter benefits of a retirement plan (you contribute pre-tax dollars, and interest isn't taxed until you begin withdrawing at retirement), and your employer may contribute additional funds.
Other than that, it's a matter of what your financial goals are. What do you want to accomplish -- start (or grow) a business? Buy a house (or a second home or investment property)? Retire at an early age? Answer that, and the money strategy will follow.
You can also promote a social or cultural cause you believe in by donating this money to an organization you feel strongly about. Whether it's guide dogs for the blind, a nonprofit theater group in your city, an environmental organization or a political cause, putting your money to work as a way to help change the world can be VERY rewarding.
As an intermediate step, lots of financial institutions are offering liquid savings accounts returning 4% to 5% with fairly low minimum balances ($1000 to $5000), and easy online connection to other accounts (checking, investments, or brokerages). It's a great place to leave your money for a couple of weeks to a couple of months while you're letting it accumulate for a major purpose (such as acquiring major assets for a business or using as a down payment on real estate), but without any of the penalties for early withdrawal that you face on CD or some money-market funds. Ing, Citibank, and Countrywide Financial all offer similar accounts; I'm planning to use one as the temporary location for my daughter's college funds, because we can transfer them to my checking account instantly on line when it comes time to pay her tuition. It's as convenient as a checking account, but it earns a little interest while it's there.
2007-01-23 06:44:41 · answer #1 · answered by Scott F 5 · 0⤊ 0⤋
Congratulations! I wish I had your problem. I got laid off in October when the real estate market took a dive, and haven't found a permanent job yet.
Invest that money. There are many places and ways. Saving for a rainy day has saved my life these last 4 months, so do yourself a favor, and make saving a habit. Treat your savings account as another monthly obligation, just like your electric bill, and pay it every month. See a financial advisor on investing. Everyone knows a get rich quick scheme, but steady amd consistent does it.
2007-01-23 14:35:58 · answer #2 · answered by Sweet Lady Mom 2 · 0⤊ 0⤋
I will bet there are a lot of people who would like to be in your shoes.
Option 1. Give your wife a credit card. I bet she can spend your extra cash for you.
Option 2. Invest in blue chip stocks such as LOW, BAC, MMM, JNJ, CHL, GE, etc.
Option 3. Invest in a couple of good mutual funds such as GAM, PENNX, TDF.
Option 4. Go on a couple of good birding trips. Texas Rio Grande region, SE Arizona, Monterey Bay. Crane Creek, Oh in May.
The only problem with options 3 and 4 is that it will more than likely require you in the future to worry about how to dispose of even more money. A terrible predicament to be in.
2007-01-23 15:57:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Did you know that you can start a Non Qualified Fixed Annuity, and add as much as you want anytime. This is after tax dollars, but it will grow tax deferred until you retire.
2007-01-23 18:45:10 · answer #4 · answered by Susan C 3 · 0⤊ 0⤋
I can't help you with a tax avantaged investment but if you want some great returns check out the link below.
2007-01-24 01:04:02 · answer #5 · answered by RichDaddy 2 · 0⤊ 0⤋
You should invest in Prosper.com. Check out these articles from the NYTimes, WSJournal, and USA Today. http://www.prosper.com/public/about/media_news.aspx
Good Luck!
2007-01-23 15:47:43 · answer #6 · answered by Anonymous · 1⤊ 0⤋
I suggest you to open a brokerage account at TD Ameritrade and drop me a line.
Top 4 Answerer.
2007-01-23 17:10:23 · answer #7 · answered by Anonymous · 0⤊ 1⤋
have you maxed out your 401k? (if you have one) just invest in taxable accounts then if you have more left, you may end up able to retire early and you can tap those without penalty then
2007-01-23 14:37:04 · answer #8 · answered by swenjj 4 · 0⤊ 0⤋
If you feel generous, I'll send you a name and adress to mail a check to.
2007-01-23 14:57:39 · answer #9 · answered by badbill1941 6 · 0⤊ 0⤋
I would recommend you to do Forex trading to get fast returns.
Hope it helps
http://money-review-site.com/investment.html
http://www.money-review-site.com
2007-01-23 20:19:17 · answer #10 · answered by Anonymous · 0⤊ 0⤋