about investing that $75,000, where to invest it?

Question

Go find a job... hum what a concept. 5 years ago a drunk driver hit me head on in my "work" truck. I'm disabled and a single mother of three kids. Too bad my parents are dead or I could be like the rest of the world and run home with my problem. I need a real answer instead of go find a job. Ya think?

Answer 1

invest in good shares tht can never go down such as microsoft, apple. mining companies etc

Answer 2

$75,000 at 5% -- and that's 5% a year, not in one month -- equals about $3,750. So, you wouldn't be able to live on it. You'll still need to find some way of pulling in income, although clearly you've managed over the last five years.

You want something safe and stable, with some growth. Because you don't know investing, you should learn. An investing club through www.better-investing.org should help. I think a mix of mutual funds would probably serve you best. Normally I'd say Exxon, but I think there will be a 10% market correction, and you can't afford to lose 10%. That's regretable, though, because $75,000 in Exxon a year ago would be worth $90,000 today. However, you do need to diversify among several things and not put everything into one stock or mutual fund. I'm sorry, you've had a tough run of luck, and it doesn't sound like $75,000 is anything near the compensation to get you through life.

Answer 3

There are some important factors that you did not elaborate.
There are several concepts to understand. Do you have a written budget so you know what your monthly expenses are?
You should have 3-6 months of money saved in a money market account for an EMERGENCY FUND where you can earn about 5% interest. See website www.bankrate.com
Second do you have any cash flow (money comming in each month) When you use the term INVEST that means you will not be needing that money for at least 5 years.
On average you would like to earn 12% on invested money.
But once it is invested to not yank it out. Let it grow. Be Diversified. These are basic concepts. Dave Ramsey
explains it very well. Use Yahoo Finance Mutual Funds
to do your own research. Dave will give you the parameters that are important. Consider attending Financial Peace University after you read his book "The total money makeover" which you can get from the library.
I personally chose to invest in no load mutual funds.
(Fidelity is one good company among several)
Over the course of 5 years they make money 97% of the time. I chose Growth, Growth and Income, International and Aggressive Growth Stock mutual funds. I have done very well. I would suggest 2 excellent sources for complete financial understanding from debt elimination to investing.
WWW.DaveRamsey.com He has a great book "the total
money make over" you can get from the library. You can also listen to him weekdays on the radio or internet for 4 hours to his national call-in show. His program really works
and there is plenty of encouragement to help anyone willing
to learn. Another great plan is www.crown.org.
There is another aspect that I have not previously mentioned. Avoid credit cards like the plague. They have sabotaged many a naiive person. Knowledge is 10%
Diligence is 90%. I am completely debt-free and intend to
stay that way. I hope you will join our ranks by wisely
spending and investing the resources that you have.

Answer 4

First you have my deepest sympathy. my mom always said never put your eggs in one basket.there are several ways to invest 1. never invest in a franchise( problem you will need more money or go broke) 2. invest in some type of real estate(for your purpose avoid timeshares) sounds good at first but won't double your money. my idea: invest spread out a. ing offers cd's with no minimum,plus mutual funds.they also have a cd ladder where you can spread out over 9 different lengths. DON'T invest in a car they are loss they you buy depreciation,insurance,etc. there is currently a great website where you can loan money to other people. interest rates up to 29% this is a good way to get a nice return on your investment and help other people. www.prosper.com
My final advice spread your money out cd's. savings bonds,saving accounts.try some mutual funds but beware these can be a bad investment do your home work. Good luck! PLEASE AVOID gambling aBAD investment

Answer 5

Well the best financial advisors are 50% right, no one has a crystal ball. Right now our economy depends on the struggle in Washington, whether or not man is actually causing global warming, or if it is occurring, is mute, the result of complying with Kyoto will send taxes/fees and energy costs soaring and all kinds of political tricks by all parties to divert government subsidies towards the big corporations that help them get elected. I would say if you have kids you should look at their college or health funds, make sure you have an IRA, I would avoid China and gold (fought with my financial planners on this a year ago, being right didn't stop my losses), I would think about at least a portion into bonds, if you own your own home I would seriously suggest investing in something like solar power or heat, it will add to the home value and reduce your energy bills. When real estate comes down, which seemes inevitable, homes that are the most energy efficient and avoid any shortages or price hikes of oil, or Kyoto carbon tax, etc. will be worth more. A vehicle will quickly lose value, don't put it there, and until the Kyoto/global warming business is resolved I'm driving secondhand ones in case they mandate specific types at some point. I strongly advise if you have a yard or at least a patio you teach your kids to grow vegetables and fruit, the demand caused by the government for ethanol-corn means other foods (and meats) will rise in cost, rising fuel costs will raise transport costs as well. Plus fruit/nut trees and berry bushes add to home value, a vegetable garden can be turned into lawn or flower garden in a year or so. If the house is not insulated or needs new windows, that might be something to consider. If you are entirely reliant on one source of heat like oil or electric, you may want to look at adding a secondary source, or installing a generator. I don't know how disabled you are, but if you spend a great deal of time indoors these are all things you should consider. "Metlife" is the only financial advice a millionaire I know would give me. Bottom line is I would not put all my money in any one place, to some extent I would make sure I had the bare essentials of durable goods, and maybe even consider furthering your own education for a job you could handle with your disability?

Answer 6

If this money is invested for the long-term (i.e. you don't need it for expenses any time in the next few years), the asset class with the best returns historically is stocks. They will fluctuate up and down, sometimes violently (like a couple weeks ago), but this long-term chart shows that the overall trend is clearly up: http://finance.yahoo.com/q/ta?s=%5EGSPC&t=my&l=on&z=m&q=l&p=&a=&c=

So, if this is a long-term investment, I personally would choose a stock mutual fund or open a brokerage account at a discount broker and buy an exchange-traded fund that invests in stocks (e.g. ticker symbol SPY or IWM).

If you will likely need that money in the next few years, then you probably have to settle for the relatively low return that you get from CDs or money market accounts.

Answer 7

I don't fully know your situation. Is the 75 grand all you have to live on? Do you have monthly income (disability) coming in?

Until you can talk to a professional who can lend you the financial knowledge that you need~ put the money at the very least into a money market account where you can be earning around 5% interest per year (around $312 a month)--- no, not a big number but certainly better than earning no interest in a regular checking/savings account. A couple of professionals you may consider:

Financial analysts and personal financial advisors provide analysis and guidance to businesses and individuals to help them with their investment decisions. Both types of specialists gather financial information, analyze it, and make recommendations to their clients. However, their job duties differ because of the type of investment information they provide and the clients for whom they work. Financial analysts assess the economic performance of companies and industries for firms and institutions with money to invest. Personal financial advisors generally assess the financial needs of individuals, offering them a wide range of options.

Answer 8

Sounds like you really need to keep this money, so you need to be in a low risk interest bearing account like a money market or a CD. If you can't afford to lose any of the money, I would avoid stocks because it is a hit and miss as far as earning or losing money. Mutual funds are a good investment but they also fluctuate in value.

Answer 9

All I can suggest is putting some in a high interest CD and the rest in a high interest savings account until you decide what to do. At least you will make some money while you are thinking about it.

Answer 10

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