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Hi everyone I am still a bit of a novice and a Brit who loves the site. My fiancee is due to recieve $175,000 soon and we are looking to invest it for the next 2 to 5 years. She is an american living with me here in South America, we plan to move to the states over the above time span.
My ideas are to put $100,000 in a CD with an internet bank.
$40,000 into a index fund or spider ? not sure.
$20,000 into some rule maker stock.

How does this seem? should I consider any thing else?

Be grateful of any help at all.

Thanks
JR
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You don't want to have $100,000 in one bank. As it earns interest, it will go over $100,000 in that one account, and I understand (you both need to check this out to be sure) that funds over $100K in one bank are not covered by the insurance. Do your math on the interest accrual timespan, and make sure the account is in toto under $100K. PS Just because the money is insured doesn't mean you can get it right away in case of bank closure/failure....keep this in mind also if you are likely to need it in a short (six months to two years') time.
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$100K + $40K + $20K = $160K. Hope you both have other funds for her taxes and your mutual travel and living expenses; $15K won't cut it for two to five years unless you both have substantial other funds and/or jobs.
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My ideas are to put $100,000 in a CD with an internet bank.
$40,000 into a index fund or spider ? not sure.
$20,000 into some rule maker stock.


If you need to keep the 100,000 for a future need then your plan is ok.

If the 100,000 is part of a long term investment plan then it should be in equities.

I would go with the Spider over the fund because you can use limit orders to buy and sell.
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>> My ideas are to put $100,000 in a CD with an internet bank. <<

First of all, don't put $100,000 into it. Put an amount which will *become* $100,000 at the time the CD matures. Otherwise, you'll end up with more than $100,000 in the account and some of it won't be protected.

>> $40,000 into a index fund or spider ? <<

Roughly the same thing. For some people, the (low expense) funds are better, for others, the Spiders are better. I don't see a huge difference either way. The one benefit of the Spiders -- and it's minor if you're not a trader -- is that they can be sold throughout the day. It's a good no-brainer, set-and-forget long-term investment for folks who don't have the time or desire to analyze individual stocks and actively manage the portfolio.

>> $20,000 into some rule maker stock. <<

Personally, I'd pick about 4-5 of them with about $20,000.

As for the large amount you want to keep in a "safe" haven, is this something you plan to need fairly soon, such as for a home purchase? If this is all long term investments, you're being way too conservative, IMO.

#29
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Thanks , I have a job with a firm in Guyana , my fiancee currently doesnt.
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Roughly the same thing. For some people, the (low expense) funds are better, for others, the Spiders are better. I don't see a huge difference either way. The one benefit of the Spiders -- and it's minor if you're not a trader -- is that they can be sold throughout the day. It's a good no-brainer, set-and-forget long-term investment for folks who don't have the time or desire to analyze individual stocks and actively manage the portfolio.

It seems the spiders are good what would you suggest I do to get them started? is there any best site to look?

Regards
JR
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It seems the spiders are good what would you suggest I do to get them started? is there any best site to look?

Find a discount broker who will let you trade from overseas. Since you are probably a buy and hold the commission is not important but the service might be. Take a look at Schwab
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My ideas are to put $100,000 in a CD with an internet bank.
$40,000 into a index fund or spider ? not sure.
$20,000 into some rule maker stock.


-I would first pay off all debt, (if applicable), then max-out your Roth IRA.

-I'd also put your 100k in a money market rather than CD, it's more liquid! And, like the other suggested, break it up between 2-4 banks for insurance reasons. I assume that this 100k is for a future house? If not I'd put 75k in a mutual fund(s).

-Putting 40k in an index sounds good, the younger you are the riskier you should be, so maybe a more aggressive fund.

-As far as the last 20k, your plan sounds good.


My 2 cents

Charles
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Sorry can you please explain a bit about the Roth IRA ,I am a bit new to the american system. She has a 401K form her last employer , she currently isnt working as she in in Guyana with me.

Thanks

JR
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Am I understanding that's its HER money? Seems like she should be here doing the learning & deciding.
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Sorry can you please explain a bit about the Roth IRA ,I am a bit new to the american system. She has a 401K form her last employer , she currently isnt working as she in in Guyana with me.

Hi JR!

This link should help. It's "All About IRA's" and covers traditional, as well as Roth IRA's.

http://www.fool.com/money/allaboutiras/allaboutiras.htm?ref=RTRiras

Fool on!

Tony
...but I still am...

Off2Aruba
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Many thanks for the advice , a much more constructive. comment than the previous person who suggested she should look herself.

I will check it out , I am dealing with this as she is currently going through a prettty truamatic time.

John
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Maybe I am taking this wrong but I dont find your comments helpful at all , so all the times I see people writing for advice it has to be the person involved only !I dont think so.

For me its about being a partner , at this time she cant focus on alll this due to the upset she has been through.

Once again if I have you wrong then blame me !however if I am right why bother to waste mine and your time.

JR
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Sorry JR---you're correct, I was rude & I'm sure you're trying to be helpful. When I inherited from my mother's estate over 10 years ago (a traumatic time for me also), I studied & invested this inheritance on my own; my husband's mother died that same year, and he did the same. Neither of us got involved in the other's personal inheritance nor did we commingle the money. Worked out for the best this way, and hey, I did MUCH BETTER than he.

Again, SORRY!
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