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 OddEye
Drugs Yay ^_^
Registered: 10/08/04
Posts: 125
Last seen: 2 days, 22 hours
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 I'm gonna have a lot of money to invest
#8100895 - 03/04/08 09:06 AM (6 months, 11 hours ago) |
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I have 40k for now but I have absolutely no knowledge of where to deposit this money. A lot more money will be coming in soon, probably to the point where I want to build up something to live with and never work ever. This money is coming from online poker btw which I am crushing, with an average of over 100$/hrs. I am now doing intership (only paid 14$/hrs  ) and in two month I'm going to put myself fulltime to poker. I am going to play until I cannot see a deck of card without wanting to kill. My objective for this year was 100k, which I am going to largely beat.
This year I already have made 40k$ and only two months has gone by and I have school/work. Where is the best place to invest those large amounts? What should I consider, does the capacity to take a part of it away takes a lot of interest away? For how long should I place that first 30k (actually going to keep 10k for myself, I'm young you know!) Btw I do not need to access the money for poker, as I have a good 25k in my account ready to play (I'm far too good to go broke! :P)
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fireworks_god
Sexy ButtMcDanger
Registered: 03/12/02
Posts: 20,144
Loc: red panda village
Last seen: 6 hours, 20 minutes
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 Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8100908 - 03/04/08 09:10 AM (6 months, 11 hours ago) |
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You can invest in the fireworks_god trust fund. 
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Meet me in outer space
We could spend the night;
watch the earth come up 
I've grown tired of that place;
won't you come with me?
We could start again.
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OddEye
Drugs Yay ^_^
Registered: 10/08/04
Posts: 125
Last seen: 2 days, 22 hours
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Re: I'm gonna have a lot of money to invest [Re: fireworks_god]
#8100943 - 03/04/08 09:36 AM (6 months, 11 hours ago) |
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Quote:
fireworks_god said:
You can invest in the fireworks_god trust fund.
All-in!
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 Sage.Phish
Guerrilla Farmer
Registered: 02/17/08
Posts: 350
Loc: City 17
Last seen: 27 seconds
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Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8100951 - 03/04/08 09:42 AM (6 months, 11 hours ago) |
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put it in a CD or a Bond
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SunshineSuperman
Mad Hatter
Registered: 01/16/07
Posts: 375
Loc: Shangri La
Last seen: 2 months, 27 days
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Re: I'm gonna have a lot of money to invest [Re: Sage.Phish]
#8100980 - 03/04/08 09:54 AM (6 months, 10 hours ago) |
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Invest it in cocaine, people always need cocaine. 
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 Veritas
Registered: 04/15/05
Posts: 9,034
Loc: PNW
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Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8101204 - 03/04/08 11:25 AM (6 months, 9 hours ago) |
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Are they withholding state and federal taxes from your winnings? If not, you need to set aside an appropriate amount in a savings account.
With the remainder, I would first establish a "rainy day" fund, with enough to pay your basic living expenses for 6 months. This can be in a savings account or in laddered CD's.
If you have $ left over after that, I would put it into an S&P 500 Index mutual fund. When you have additional amounts to invest, you may want to try other mutual funds.
That's my financially-conservative advice. You may find it more entertaining to take risks with your principal, and therefore want to invest directly in stocks. I recommend educating yourself for AT LEAST 6 months prior to placing any stock orders.
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OddEye
Drugs Yay ^_^
Registered: 10/08/04
Posts: 125
Last seen: 2 days, 22 hours
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Re: I'm gonna have a lot of money to invest [Re: Veritas]
#8101282 - 03/04/08 11:52 AM (6 months, 8 hours ago) |
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What are the interest rate for these funds? I am receiving directly 9% of my online poker account because I received the highest rank on UB, so it would be pretty important that if I cash out I receive more than 9%.
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Veritas
Registered: 04/15/05
Posts: 9,034
Loc: PNW
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Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8101313 - 03/04/08 12:01 PM (6 months, 8 hours ago) |
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You are unlikely to make more than 9% in mutual funds right now, though you would likely average 10-15% over the next 10 years. If you can get 9% through your online poker account, then stick with it!
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OddEye
Drugs Yay ^_^
Registered: 10/08/04
Posts: 125
Last seen: 2 days, 22 hours
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Re: I'm gonna have a lot of money to invest [Re: Veritas]
#8101346 - 03/04/08 12:12 PM (6 months, 8 hours ago) |
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I'm still gonna put at least 30k in an account, as safety to online poker risk implications(sudden closure and poker ban whatever), from which I don't have to be able to take money from before sometime.
10k in account that I can take money from anytime, which I will use to pay my bills, I'm probably gonna need something like 1.5k a month to live, something like that.
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phi1618
old hand
Registered: 02/14/04
Posts: 3,669
Last seen: 5 hours, 12 minutes
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Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8101474 - 03/04/08 12:52 PM (6 months, 7 hours ago) |
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Veritas has very good advice.
9% is a very high return for a loan - I'd be suspicious about what they're doing with your money to offer such an attractive rate. Consider any money you leave in your poker account a high-risk investment - all kinds of bad shit can happen without warning.
Don't be in a huge rush to get into the stock market right now - it might not be a great time to get in (though better than 6 mos. ago, obviously).
Right now, high yield (aka. junk or "below investment grade") commercial bonds are offering attractive rates relative to the stock market - many more bankruptcies are priced into bonds than into stocks. Several companies offer high yield bond funds, and there are also ETFs available - pay attention to how the fund is managed, and prefer lower fees. For ETFs, make sure that the price on the market matches the assets of the underlying fund.
Over time, think about moving into stock index funds - I'd suggest not concentrating too much money in US stocks any time in the next 10 years, though - invest some money in other stock markets.
Although commodity prices are very high and volatile now, we are very likely in a secular bull market for commodities, and there are index funds available to invest in commodities as well - look for a significant correction before buying a commodities index fund. These are a little harder to find than stock index funds right now, but there are exchange traded (e.g. AMEX:DBA) funds as well as more traditional options (search for Roger's commodity index).
For bond and stock funds, I suggest Vanguard as a good manager - they have low fees, low minimums, and a reasonable selection of funds. If you get into trading more actively, use Interactive Brokers - they have the lowest fees of any other broker, and a better range of products.
Edit:
another idea right now:
If you really make $100k this year, you'll be at a high marginal tax rate (assuming you're in the US). Right now, municipal bonds are a good buy because the rates are at historically high levels (higher than treasuries) and there is no taxes on the earnings. This is as good a low-risk investment as you'll ever find.
You can get in these through bond funds, either ETF or standard (Vanguard or other).
Edited by phi1618 (03/04/08 01:16 PM)
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Capatalistc nomad
Positivelyscandalous
Registered: 06/17/03
Posts: 9,774
Loc: Pongyang, North Korea
Last seen: 1 day, 23 hours
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Re: I'm gonna have a lot of money to invest [Re: phi1618]
#8101538 - 03/04/08 01:17 PM (6 months, 7 hours ago) |
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man, get your money out of those poker accounts, i know so many people that have gotten their poker money robbed its not even funny
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PEACE
zippoz
Quote:
in times of widespread chaos and cofusion, it has ben the duty of more advanced human beings - artists, scientists, clowns, and philosophers - to create order. In such times as ours however, when there is too much order, too much m anagment, too much programming and controll, it becomes the duty of superior men and women and women to fling their favorite monkey wrenches into the machinery. To relieve the repression of the human spirit, they must sow doubt and disruption
[/quote]
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OddEye
Drugs Yay ^_^
Registered: 10/08/04
Posts: 125
Last seen: 2 days, 22 hours
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phi1618 - I am guessing those are available to canadian/québécian? Do you suggest keeping it in my poker account for a couple of year (2-3) then cashing out massive amount and go for a very good interest mutual fond or whatever (still got no idea :P!)
Capatalistc nomad - If only I could deny most poker site are cheap bastard that would go away with your money on any occasion. Someone from a forum I visit, a real high-stakes online baller, has possibly lost 650k from a single poker site closing. A real friend has lost 40k, however my site has been etablished since longer and I really doubt it will close anytime soon and I have all the VIP support for easy and quick cash out.
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geokills
······· º¿°·······
Registered: 05/08/01
Posts: 13,158
Loc: city of angels
Last seen: 13 minutes, 27 seconds
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 Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8101741 - 03/04/08 02:05 PM (6 months, 6 hours ago) |
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Nevertheless, it is unwise to have all (or the majority) of your assets in one place.
You never know what can happen, and you won't know, until it's too late!
If you already have tens of thousands of dollars elsewhere and you are comfortable risking the potential loss of the ~$40,000 in your poker account, by all means continue to let it ride. But if that's your entire bankroll, be smart, and withdraw at least 50% of the funds right away. Can you imagine how you would feel if you became yet another sucker that loses all his money overnight to unforeseen circumstances simply because you were too greedy and/or too lazy to manage your risk?
Protect your assets through diversification.
PS. Congratulations on your apparent card skills!
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┼ ··∙ long live the shroomery ∙·· ┼
...╬π╥  ╥π╬...
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Cowgold
Bullshit
Registered: 04/04/05
Posts: 10,114
Loc: .
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Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8101863 - 03/04/08 02:26 PM (6 months, 6 hours ago) |
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Set aside enough to cover your taxes. The taxman doesn't back off.
Read up on Joe louis.
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phi1618
old hand
Registered: 02/14/04
Posts: 3,669
Last seen: 5 hours, 12 minutes
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Re: I'm gonna have a lot of money to invest [Re: OddEye]
#8102442 - 03/04/08 05:43 PM (6 months, 3 hours ago) |
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Quote:
Do you suggest keeping it in my poker account for a couple of year (2-3)
No! Listen to what other people are telling you here - if you're unlucky, you could lose all that money tomorrow.
If you're canadian, forget about muni bonds - I assume the tax benefits are for US citizens only. The rest of the suggestions still stand.
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