I recently came into 65k. How should I invest it.?
Question:
Answer:
I am a financial advisor. You need to sit down with some one that can take into consideration all of your financial goals and all of your debt. An advisor will look at your current age age you would like to retire, Current income, Net worth. It is not always smart to pay off you debts immediately. If you owe money on your house that is a tax write-off I would not pay that off right away. Pay off other high rate consumer debt first. Then with whatever money you have left over you should fund a Roth IRA annually and put the rest of the money in a mutual fund that fits your risk profile.
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Go see a financial planner. Use the money to secure your retirement. Keep some for fun, but, especially if you're young, invest it, and you will be glad you did.
give it to me?
please
OK, no really. Pay off small debt. Get an IRA for the majority of it and a small portion of it like 3-6% or so put in a money market for a rainy day & KEEP WORKING AT YOUR JOB.
You can only put about $3,500 per year into IRA's, so you won't be able to shelter much of it from taxes that way.
If you have no experience investing then you should buy short-term CD's at the bank and educate yourself about long-term investing before putting anything at risk. Remember that everyone who writes or talks about how to invest has an agenda. The mutual fund companies obviously want to sell funds. Even supposedly objective sources like books are usually trying to persuade people that their style of investing is best, sometimes with religious fervor. Ignore the arguments over value vs. growth and whatnot and decide what you're comfortable with. Don't try to prove something by buying $10,000 of Google stock. Start slowly with a few thousand in a relatively non-volatile fund, and see how you react to a downturn. If you eagerly buy more shares then you're a natural. If you break into cold sweats, you'll know you need to keep your risk low. Tolerance for risk does grow over time if you don't get horribly burned at the outset. In time you should be confidently invested and more years than not, your nest egg will grow.
Someone else mentioned a financial planner, but I think you should educate yourself first and then decide if you're confident enough to work on your own and save yourself a lot of money.
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CDs are for suckers. Take a look at US treasury I-Bonds. Banks don't want you to know about them because they're tax free, safe, and have nothing to do with banks.
Sit down with a financial planner and tell him or her your goals and what is important about the money to you. Let the planner help you pick investments or at least some kind of game plan.
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