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What to do with MY $100,000 dollars? (inherited)

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Josiah
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Re: What to do with your $100,000.  Reply with quote  

quote:
Originally posted by Rolo
quote:
Originally posted by Josiah

Question, would this be a good one to invest in, it's one of the highest return rates, but the number is so high (300's), does that mean the price for each share is high? Anyways, let me know what you think of the MSFRX.


Yes, the share price is currently $375.66, which is atypical.

Click on 'performance', look at the bottom.

RANK IN CATEGORY (BY TOTAL RETURN)
Period Rank Funds in Category % Rank
Year To Date 576 1049 54.91
...
1-Year 509 958 53.13
3-Year 312 687 45.41
5-Year 36 527 6.83

MSFRX's 5-year ranking is great (top 7%+) but its been falling to the bottom half the more recent you get.


BRUFX...ehehehe...I love these...they are just a fund run by a dude. JAMFX is another one...run by a geeky-looking 20-year old. (Not that there's anything wrong with looking geeky...well, not since Bill Gates anyway.)

RANK IN CATEGORY (BY TOTAL RETURN)
Period Rank Funds in Category % Rank
Year To Date 20 1049 1.91
...
1-Year 1 958 0.10
3-Year 1 687 0.15
5-Year 1 527 0.19

Consistently in the top 1% of its category.

Don't overlook the word "category" here. That is important. Different categories are for different purposes. Gold/precious metals funds look awesome right now...but they don't always. I get my returns by anticipating which categories are going to be the top performers and rotating them accordingly.


Do you HAVE to do all of this to do WELL? No. You can put together a well-diversified portfolio, have the discipline to keep funding it, and check it only once a year, and do fantastic. That is pretty much the norm.

There is no reason why you, specifically, cannot retire wealthy by 40. This is a critical juncture for you...the decisions you make today will either leave you saying "Boy...I am so glad I did that!" or "Dammit...I kick myself for doing that!"

Oh, another thing about the truck issue: insurance. Do you know how much your insurance would be for it? Many don't think of that until AFTER its too late and at 18, your insurance won't be cheap. That is why, at 19, I paid cash for my new truck...didn't have to carry full coverage on it (and I didn't have to pay outrageous interest rates on it).

Does the average stock go down, as opposed to up? About the insurance, I am getting quoted 6k+/yr (!!!) by everyone, because of a wreck (my fault). Sad We'll see what happens, I am going to research these stocks a bit more, like foreign exchange, precious metals (I'll research these a lot). So in essence, the MSF mutual fund I am in is "average", I was also reading it's a low risk/small return or something like that, in other words, it's not a big gain. I wonder what the more aggressive risks/large returns will net you in 10 years. I almost doubled mine on an "average" stock. Well I cannot wait to start investing, before I do I am going to research them like I did the truck. I might only cover liability on my truck ($120/month) and take the risk, it's a big one, but another one of those "I can't believe I did that!" or "I am so glad I did that" down the road. Ahh, the risks the risks the risks.
Post Wed Sep 07, 2005 3:33 am
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tss4
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Here's a suggestion for you. Rolo is giving you good advice, but to be honest, I'm not sure you're ready to invest using the techniques that Rolo will likely give you. Given that you have so little experience with this (and are still asking a lot of beginner questions), I'd recommend doing something easy at first. Take say, 90k of that money and put it into a good value or growth mutual fund. Something that you can expect to do as good or better than the average stock market return. I use Fidelity for this but there are many options. Then I would take the other 10k and use it to try out some of the more advanced investment strategies that Rolo and others will likely give you. You can try using that 10k to invest in sectors that you think will be hot and/or specific stocks. That way you will have a chance to learn and get some experience to draw upon before you subject the whole 100k to the type of risk that more active trading can incur. Just a suggestion to think about. And I know you hate hearing this, but the smartest thing you could do is not buy that truck. Its going to be a money pit for you.
Post Wed Sep 07, 2005 12:29 pm
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Josiah
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quote:
Originally posted by tss4
Here's a suggestion for you. Rolo is giving you good advice, but to be honest, I'm not sure you're ready to invest using the techniques that Rolo will likely give you. Given that you have so little experience with this (and are still asking a lot of beginner questions), I'd recommend doing something easy at first. Take say, 90k of that money and put it into a good value or growth mutual fund. Something that you can expect to do as good or better than the average stock market return. I use Fidelity for this but there are many options. Then I would take the other 10k and use it to try out some of the more advanced investment strategies that Rolo and others will likely give you. You can try using that 10k to invest in sectors that you think will be hot and/or specific stocks. That way you will have a chance to learn and get some experience to draw upon before you subject the whole 100k to the type of risk that more active trading can incur. Just a suggestion to think about. And I know you hate hearing this, but the smartest thing you could do is not buy that truck. Its going to be a money pit for you.

A moneypit indeed, as for Fidelity, what kind of return do you average a year (i.e. +10% of total investment)
Post Wed Sep 07, 2005 6:51 pm
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tss4
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quote:
Originally posted by Josiah

A moneypit indeed, as for Fidelity, what kind of return do you average a year (i.e. +10% of total investment)


I have 3 funds at the moment from fidelity. One is their Defense and Aerospace fund, one is thier value fund, and the last is their international growth fund. I've had the first two since January and have made about 15% and 10% increase, respectively, in the past 8 months. The last one I got about 3 months ago and I have seen 10% growth. But remember, past performance is no gaurantee of future performance. One neat thing is that with 100k in fidelity, you would qualify to talk to thier investment advisors for free. Its a pretty good option that could net you some decent returns while you become more of an expert on investments. If your interested in them, then I would go to their web site: fidelity.com and start looking around. They have a fund picker that will search through all their funds based on the criteria you give them. Its prety neat and nice for a beginner or even someone more experienced. You can also give them a call and talk to someone for real too. But again, always remember that with stocks and mutual funds, past performance is no gaurantee of the future.
Post Thu Sep 08, 2005 12:23 am
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Rolo
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quote:
Originally posted by tss4
But remember, past performance is no gaurantee of future performance.


I think there needed to be emphasis here. heh.

"Expect me when you see me."
Post Thu Sep 08, 2005 12:39 am
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Rolo
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quote:
Originally posted by tss4
I'm not sure you're ready to invest using the techniques that Rolo will likely give you.


Correct. These take time to develop and years to master....and some never 'master' it.

The biggest thing is to never get hasty. All investment moves should be planned and deliberate.

quote:
Originally posted by tss4
Take say, 90k of that money and put it into a good value or growth mutual fund....Then I would take the other 10k and use it to try out some of the more advanced investment strategies that Rolo and others will likely give you.


Awesome advice. Experiment with little and when you get proficient with it, you can handle more. (hence the quoted "Parable of the Talents")

$10K is still quite a bit. I would say $2K; you can still margin it.

Oh, and buy some books!

"Expect me when you see me."
Post Thu Sep 08, 2005 1:26 am
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rexrae
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DIVIDE AND CONQUER  Reply with quote  

FIRST THING I WOULD DO IS TO EARN A DEGREE.IF YOU ARE GOOD AT THIS ATLEAST AT AVERAGE THEN IT 'LL BE THE BEST INVESTMENT.ALSO COLLEGE EDUCATION WON"T COST 1/3rd OF IT.YOU SHOULD SELECT YOUR OWN PASSION TO FOLLOW BE IT TECHNOLOGY,MANAGEMENT,BUSINESS.AT THIS AGE GETTING A BACHELORS SHOULD BE YOUR GOAL.
SEE YOURSELF ALWAYS TEN YEARS AHEAD.THIS MONEY IF YOU INVEST ENTIRELY TO SOMETHING MATERIAL WILL NOT DO WHAT EARNING A PROFESSINAL DEGREE CAN DO,FOR THE LONG RUN OF LIFE.
PROFESSIONALS EARN AROUND A $100,000 AS THEIR ANNUAL STARTING INCOME SOMETIMES.YOU SHOULD HAVE AN EDGE AT SOMETHING THAT YOU CAN PASSIONATELY FOLLOW,GIVING YOUR WOULD-BE-SPOILT KIDS A ROLE MODEL,YOUR BEAUTIFUL GIRLFRIEND A MAN TO DEPEND ALWAYS.

OR ELSE YOU SHOULD BECOME AN INVESTMENT GURU PLAYING WITH YOUR MONEY.
SMALL AMOUNTS UNDER $10,000 CAN BE INVESTED ONLINE INVESTMENT SCHEMES LIKE LONG RUNNING HYIPS,AUTOSURF PROGRAMS etc(THIS IS MY OWN SELFISH OPINION).
Post Mon Sep 12, 2005 3:15 pm
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paydays
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Sounds like there's lots of advice here for the young 18 year old.... all of it good.

If I had my time again, and had that sort of cash to play with, I would have learned about Cash Leveraging alot sooner than I have done now.

I don't want to start advertising anything here, as I don't think that's fair.... I am available to contact if anybody wants some friendly advice. I can show you a couple of good, inexpensive ways (that's worked for me) of Cash Leveraging, and if anybody wants to pursue any of them, that's their choice.


Make your money work for you... not the other way around !


If you can't PM me here, email me: mark@largeincome.ws


Good luck in all you decide to do.


Mark Very Happy
Post Fri Sep 23, 2005 6:12 pm
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Rolo
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Re: DIVIDE AND CONQUER  Reply with quote  

quote:
Originally posted by rexrae
FIRST THING I WOULD DO IS TO EARN A DEGREE.IF YOU ARE GOOD AT THIS ATLEAST AT AVERAGE THEN IT 'LL BE THE BEST INVESTMENT.


AND WITH A DEGREE, YOU MIGHT LEARN TO TYPE without the CAPS LOCK key. Laughing


What have you decided to do, J?

"Expect me when you see me."
Post Fri Sep 23, 2005 6:59 pm
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Josiah
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Re: DIVIDE AND CONQUER  Reply with quote  

quote:
Originally posted by Rolo
quote:
Originally posted by rexrae
FIRST THING I WOULD DO IS TO EARN A DEGREE.IF YOU ARE GOOD AT THIS ATLEAST AT AVERAGE THEN IT 'LL BE THE BEST INVESTMENT.


AND WITH A DEGREE, YOU MIGHT LEARN TO TYPE without the CAPS LOCK key. Laughing


What have you decided to do, J?

I haven't recieved the money yet, it's going through the court stages (they're taking forever, should be done by now), and then the bank will recieve "permission" to release it into my name. I think I have decided on not getting the F150 and just getting a jeep that I will throw money into and use for rock crawling/trail riding. I think it would be the cheapest route, I guess that truck can wait. Anyways, I am still up in the air with the money, I think I will save most of it and put some into the same investment company it's been in but under a different strategy/investment list, something more aggressive where the risk is a bit higher but the returns are greater if you're lucky. I think I'll put 10k into something like that (which they manage on their own, they choose which stocks are best, etc) and continue to debate over the other listed ideas in here. I'll keep you guys informed, and if you have anymore suggestions as to what company's to invest in or what plan's with the company I am with to invest in, I'm definitely all ears. Thanks!
Post Fri Sep 23, 2005 8:19 pm
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tss4
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Just to comment on the fellow talking about the degree. I don't know what your plans are, but getting a good degree in a profitable feild (engineering, medicine, etc.) will be extremely profitable to you in the future. Both, my wife and I are engineers and we pull down over 135k a year. We've both only been out of school for about 5 years. Spending some of the money to go to school would be a good investment. Just an observation. Good luck.
Post Sat Sep 24, 2005 2:32 pm
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Rolo
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quote:
Originally posted by tss4
...getting a good degree in a profitable feild (engineering, medicine, etc.)


Getting a degree in what you like to do or are passionate about is what's important.

I am an engineer because I like it.
...and I don't have to deal with the customers. Smile

"Expect me when you see me."
Post Sat Sep 24, 2005 4:04 pm
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Josiah
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quote:
Originally posted by tss4
Just to comment on the fellow talking about the degree. I don't know what your plans are, but getting a good degree in a profitable feild (engineering, medicine, etc.) will be extremely profitable to you in the future. Both, my wife and I are engineers and we pull down over 135k a year. We've both only been out of school for about 5 years. Spending some of the money to go to school would be a good investment. Just an observation. Good luck.

What kind of engineering? Is the schooling difficult to enter into? What do you do on a daily basis as an engineer. My gf is interested and come to think of it, I am a bit as well.
Post Sat Sep 24, 2005 5:05 pm
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auggyf
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I am also an engineer (computer science) --

My advice would be to find a career that interests you the most. If you decide to go to school for 4+ years and work in it as a career, you probably won't do well in it if you're only doing it for the money. Or perhaps you'll do well, but you won't be happy. My point is, find out what you would WANT to do first, then figure out what kind of education you need, then talk about the money. Alternatively, you can get a broad, liberal university education which should open your eyes to a lot of very interesting subjects and career potentials.

So, I would look at (in order)
1) higher education
2) job prospects

And simultaneously, you can figure out what to do with this windfall of money you've inherited. I am of the opinion that education is going to be your best investment, both financially and personally. But this is your decision to make.

The main questions for you is, what do you want to do with this money, and how long from now? How much risk are you willing to take? You must be willing to accept risk for a higher reward; assuming you make wise investments, you will only make a higher return with higher risk.

You also need to learn about diversification. If you put your money in one particular company's stock, a large chunk of your $$ are at the mercy of this company's stock performance (which may or may not be related to the company's financial performance). It turns out that you can maintain the same level of returns but with reduced risk by splitting your money up into different kinds and sizes of companies. Moreover, it may be worth it to give up a little bit of expected returns to substantially reduce the risk of your money. So even if you are willing to accept risk, and don't need to use your money for a long time, you would end up putting a bulk of your money in stocks, some in bonds and some in cash.

Would you mind seeing your inherited money lose 5% of its value in a year? What about 10%? 20%? And if it did lose this kind of money, how comfortable would you feel keeping your money in this kind of investment?

I encourage you to take these questions seriously. For starters, try this free planning tool (click on "Investor questionaire"):
http://flagship5.vanguard.com/VGApp/hnw/content/PlanEdu/General/PEdGenInvOVContent.jsp

Vanguard is a reputable, not-for-profit group of mutual funds that focus on low-cost, diversified investments. I would trust them for straightforward, unbiased advice.

I encourage you to be very skeptical about suggestions that you can beat the market, or that there's easy money to be made somewhere. Get objective advice, learn as much as you can, and then make an educated decision. It may be the case that just learning about all the different financial instruments and strategies out there will be worth far more to you than the actual choice you make in this situation. Good luck!
Post Sat Sep 24, 2005 7:27 pm
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sensationalsites
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Buy 107,000 Powerball tickets Smile

Just kidding.

Your safest bet is obviously to bank it.

Or find a business you feel confident in, and invest with them.

James
Post Sat Sep 24, 2005 8:50 pm
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