No. of Recommendations: 9
What an uplifting story, Sam, and welcome to the Motley Fool community.

If anybody from the Hidden Gems boards introduced you to BMW it would most likely have been a guy named cocomurph. He's the one who pointed this place out to me and others.

Murph, like you, had a business he sold and now he's in business for himself investing the capital gains from the sale of his restaurant.

I'm sure he and you and Jim BMW (founder of the BMW way) will have good wisdom to share on your nice little hunk of free change.

I will recommend a few quick things for you to do:

1) Buy a couple of the Motley Fool books, one is called "You Have More Than You Think" and the other is titled "The Motley Fool Money After 40". (I'd supply links but I'm in a rush.)

2) Balance your HG newsletter with either Income Investor or Inside Value newsletters. You'll find outstanding investment advice on stocks which are undervalued and most of which throw off dividends.

3) Read the front page of the Motley Fool whenever you have time and learn everytime you read.

4) Open a bank account with a high yield. Someone the other day threw a bank at us which paid 4.5% on savings. The bank is Emigrant Bank or something by that name. That bank has been in business since 1850 and is protected by the FDIC, etc.

Now here is where I differ. I and many long term buy and hold types have learned to place 3 months of living expenses in a bank savings account. However, with the way this country is in debt now, I would place 6 months of "Rainy Day expenses" savings in an account like this.
You've got 6 kids. Wow. So you're expenses are probably much higher than mine. Sit at the kitchen table with your wife . . . with the kids . . . and be honest and forthright and explain what you are attempting to do. Let the kids add up their expenses. Make a game of it. How can we get X amount of dollars into this savings account in case daddy has a train run over his foot or something like that? (I'll betcha that would hurt worse than a pop in the head from a bounced drunk. ;>})

5) Pay off all credit cards. Pay off their monthly charges in full at the end of each month in the future. Some of those things carry rising APRs of 18-23%, and that's free money you pay them if you aren't paying in full. That money invested in many stock index funds this year would have negative gains. So pay off your credit cards and quit lining the pockets of your credit card issuer with your free money.

6) Buy a few more books such as "One Up on Wall Street", "The Davis Dynasty", and "Poor Charlie's Almanac". These books are about long term buy and hold success stories. Use Peter Lynch, Shelby Davis, Charlie Munger and Warren Buffett as "templates" for investing properly.

7) . . . keep posting. You'll learn a lot from people who drop in occassionally but who drop big "wisdom" bombs when they pop in their heads. I've learned more about investing, charting, analyzing, etc., from these boards. And of course you'll learn loads from those who post daily and who are sharing their investing knowledge. (I lurk a lot on the Inside Value boards where some of the smartest investing minds I've ever come across post.)

8) Lastly, for now, (and I know I could add other advice to this list) ask questions. Lots of questions. If you are on Hidden Gems you can go directly to Tom Gardner or Bill Mann or any of the other Motley Fool writers for direct advice. These are very good people. They aren't blowhards. They don't offend anyone who might ask a question which has been asked a hundred times before. They have patience and are very courteous and wise.


Congrats on the sale of your company. I think you probably got out at the right time. One job is enough for a guy with 6 kids. Spend time with them before they are all grown up and show them how to compound their money like you are doing. This is the kind of thing our schools do not teach. Make a night once a week for showing them the magic of compounding, buying value, and reinvesting dividends. You'll see their eyes light up. While we are at it, why not open a Roth IRA for all six of them and give them their first stake in return for doing manual labor? Offer them the stocks, let them decide for themselves, and watch the competition between siblings take off on its own.

Okay, that's enough of my blather for now. I'm sure you are going to get a load of advice from people more knowledgeable than myself.

Again, welcome to Motley Fool.

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