I just received 40 thousand dollars from a will how can i double it?

Answer 1

You should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult time buying a properly balanced portfoilio of stocks on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced assortment of stocks. Unless you know what you are doing, it is best to buy mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea of how to do "Asset Allocation," determining how much to put in each type of fund.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

Buying a house instead of renting will save you a lot of money in the long run. You don't have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don't know how to handle deadbeat renters, you can have trouble.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
http://www.diehards.org/readsites.htm
http://finance.yahoo.com/education/begin_investing
http://finance.yahoo.com/funds/basics

Asset Allocation Calculators
(Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)
https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education
https://ais2.tiaa-cref.org/cgi-bin/WebObjects.exe/DTAssetAlcEval
http://www.ifa.com/SurveyNET/index.aspx

Web forum: http://www.diehards.org/
(Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)


529 plans: http://www.savingforcollege.com

Answer 2

Talk to a financial professional about investments. Betting on Black or red could double your money quickly, but it can leave you with nothing too. An annuity might be a good way to have that money for your retirement. If you are still young, there are many ways to grow that money into a retirement security fund for you, safely.

Answer 3

Invest it in stocks or bonds, mutual funds maybe even property. It all depends how much time you have and what type of risk you are willing to take. The best would be to speak to a financial professional who can help you set up a detailed investment plan.

Answer 4

Dont bet it all. If you dont want to wait years for it to increase.. By using a bank at such a low percent... I suggest taking 5 thousand to ac or vegas and try to gamble with it. If you make money lets say 1000 take your now 6000 and gamble with that. But never let urself lose more than your orig. 5 grand.... Never put it all down. Never bet it all. Only bet with a smaller amount and use that amount to grow. If you lose it.. Its better than losing all your 40

Answer 5

invest and in years (maybe 10 or so) it will be doubled. you can't just double money or everyone would do it. usually when you face the possibility of doubling you also face the risk of losing some or all. even with investments. i recommend a mutual fund or index fund.

Answer 6

If you want a guaranteed return, buy a long term CD or bond with a high yield. If you want a lot of risk, buy a mutual fund.

Answer 7

Put it in a tax deffered retirement account, so you won't have to pay taxes on it.

Answer 8

play craps and put it on the pass line

Answer 9

Bet it on Black or Red...You decide