What to do with $100.000???

Question

I am a single working mom. I have only about $2500 in debt (for school), and owe $3000 on my car that I loaned from a friend and no credit cards debts. Ofcourse i want to pay all this off. I am not interested in buying a house because i am concidering moving back to europe might be beginning 2008 or little later unless i decide to stay here.
Only thing i might concider is that I might upgrade to a better / newer car....
Because i am not sure if i want to stay in the USA i dont want to start my 401k or anything like that ..........and want to be able to take my money whenever i decide to leave the country.
Any ideas advise what to do with my money, BESIDES GIVING IT TO YOU...;)???????????

Answer 1

take your kids to disney world and have fun!!

Answer 2

Pay off any debt that has finance charges/interest associated with it. Put the rest in a money market (some of the better ones are offering almost 6% interest) until you decide what you want to do.

DON'T buy a new car if you plan to move to Europe; if you do, you will probably have to sell it at a substantial loss. If you ship it, the cost of shipping will be prohibitive. If you want a better car, I would suggest a 2002-2003 BMW 3-series w/less than 40K miles from Ebay. If you drive it one year, you will be able to sell it in Auto Trader for what you will have paid on Ebay.

When you have settled wherever you plan to live, see a financial planner about setting up a diverse investment portfolio that matches the level of risk/return you feel comfortable with.

Good luck

Answer 3

I'd talk to a financial adviser and invest it in an annuity or something like that - that kind of money opens you up to some serious benefits and pays far better than CDs, a savings account and other stuff that are sage, but barely beat inflation. Sure, you are making money, but your spending power isn't increasing - to do that, the rate of return has to be higher than the rate of inflation. Over time, the difference is measured in orders of magnitude.

At 16% annually (reasonable depending on how you structure your portfolio) its around 12% after adjusting for inflation based on historical numbers. That means if you leave it sit for long enough you would have alot.

Lets do some math assuming no additional contributions and having adjusted to give values in today's dollar for sake of comparison Same basic idea would apply to the Euro, Yen, whatever.

10 years: ~$300,000.00
20 years: ~$950,000.00
30 years: ~$3,000,000.00

A dollar invested now is NOT the same as a dollar invested tomorrow. That's compound interest for you.

Seriously though - talk to a financial adviser the above is the general idea but talking to a professional before you do anything is the best thing you can do.

Answer 4

Damn, I had a for sure "best answer" right up to your last line.

Seriously, I would check several bank rates on Certificates of Deposit. Select the highest rate and buy CD's to cover the sum you want to save. Personally I would look a 3 or 6 month instruments. I can't see the interest going down soon and with short term CD's you can roll them to the higher rate as they mature. I'm sure there are higher rates available but you seem to be looking for liquidity and safety, both should be covered with the CD.

Do get that money in a structured investment account as soon as is practical. The longer you invest for the greater the risk you can assume and hence the better the return on a diversified account.

Good luck, and have a safe trip if that is what you decide to do.

Answer 5

Repay your friend the $3000 in 10 payments or fewer. Look on line at Morningstar ratings for money market funds. Make a large investment in Van Guard Index Fund. On line or by calling by telephone, get a checking account within Fidelity's Individual Account in a Money Market Fund with No Load (fees) for the balance. Then use the checking account to withdraw the money for living expenses. Close the account when you move. Instead of Fidelity you may choose to use Van Guard or T.Rowe Price. This way the money is available for withdrawal when ever you need it. Good luck.

Answer 6

Put it into the stock.
if you find the right business It should get doubled in time. Once you get more money in the stock it will have a higher chance of getting higher. I know I did the right thing when it was starting to look like I was getting into debt

Answer 7

I do think that a good idea would be investing it in a business for you & your children to live at ease whether here or in europe, sth like a small school or or ... best of luck wish you all the best

Answer 8

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Answer 9

why would i want your money? i can see where the problem is.


how about using it wisely instead.
why not pay the debts off?

why not invest it wisely also?

it's not that hard.

Answer 10

Land or stock.