I am getting money from a life insurance policy. After I pay off all my bills, I will have about $125,000. I do not know what to do with this money. My wife would like to buy a house sometime next year. ( we live in california) What is the best way to invest this money.Any help would be appreciated
not meaning to be a wet blanket to anyone on these boards, but with that sort of money and that kind of question, if you aren't sure you had best get a professional......you might check your bank or get references from them, but with 125K I would take my own shot first before asking strangers on the web.......JMOMike
When you say get a professional, what do you mean? A professional what? I would rather hear from people on the boards than go to someone who wants to charge me an arm and a leg for advice. I thought I would see what people on the boards have to say. Thanks
When you say get a professional, what do you mean? A professional what? I would rather hear from people on the boards than go to someone who wants to charge me an arm and a leg for advice. I thought I would see what people on the boards have to say. I was in the Financial advisor buisness for about 2 years....I am out of it now (thank god) now in accounting, but anyway....I can tell you that there are several scamming one's out there.....more bad then good. But with that size of money- it wouldn't hurt you to see what a Financial planner would advise.....not just one...but say 5-6 of them....just listen..take notes...DON'T BUY ANYTHING....unless it just makes absolute sense..then double check..It costs nothing to listen to advise..same as the board. If you want to buy a house in less then 3yrs I can tell you there going to advise a CD, or MONEY MARKET, I bonds perhaps. If you go into your bank they will oversell you on CD's and Asset Managment accounts(these suck in my opinion). Not really enough time to take risks in the stock market.(you would be risking your new house on it, not cool) Try an internet bank money market-I use NETBANK and don't have a problem. Short term rates are down though.
Read, read, read. Read books by Peter Lynch, Suze Orman and Andrew Tobias ("The Only Investment Guide You'll Ever Need" and "Money Angles.") and any book about investing in new or used book store that you will WANT to read. "The Millionaire Next Door" is great for encouraging you not to spend to impress. You will astound yourself by how much smarter you will be than other people. Just put your lovely nestegg in a broker account like Schwab where it can be earning interest in one of several types of cash accounts like muni-bond funds or money market. Then as you learn more you can invest it or spend a portion for the downpayment on a house. Transfer some every year into your Roth IRA's and keep educating yourselves. Make it a team effort. Set goals to increase your net asset value each year. Good luck.
I would simply put the money in a cd for a year, since you want to buy a house. This is a fairly large amount of money and you should be able to get a good rate. If you get into stocks and sell with a profit within a year you will be taxed at a higher rate on the profit vs. the interest on the cd. The advantage of the cd is you know the interest rate, with stocks it's an educated guess if you make money. Also, check on different cd's, with some you can put money in for 2 years but have access to it every 6 months to withdrawal without penalty. Checking with Banks should not cost any money, and some Financial Consultants offer free first time consultations. Hope this helps.
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