Home | Community | Message Board


This site includes paid links. Please support our sponsors.


Welcome to the Shroomery Message Board! You are experiencing a small sample of what the site has to offer. Please login or register to post messages and view our exclusive members-only content. You'll gain access to additional forums, file attachments, board customizations, encrypted private messages, and much more!

Bridgetown Botanicals Shop: Bridgetown Botanicals

Jump to first unread post Pages: 1
Invisibletrscstghst
stranger
Male


Registered: 10/14/07
Posts: 786
Loc: here
so i came into some money
    #23877134 - 11/29/16 02:58 AM (7 years, 2 months ago)

30k to be exact.  at the moment its just sitting in a money market savings account drawing 1%.

so I was thinking since I don't need it to live at the moment I should just sit on it and wait for the stock market to take a downturn, then try to get in on the bottom in some mutual funds.  does this sound like a sound idea?

or should I start investing it now?  I want to keep at least 10k liquid for emergencies. 

another option would be to use it to go to a vocational school to learn a skilled trade (i'm in my early 30's)  so I can just make more money at work. 

or should I just throw it at my mortgage.


--------------------
Why use up the forests which were centuries in the making and the mines which required ages to lay down, if we can get the equivalent of forest and mineral products in the annual growth of the hemp fields?
o Henry Ford


Extras: Filter Print Post Top
Offlineashfiken
TotalCrazyasshole
Male User Gallery

Registered: 09/06/06
Posts: 3,073
Loc: SCranton
Last seen: 4 hours, 53 minutes
Re: so i came into some money [Re: trscstghst] * 1
    #23877257 - 11/29/16 04:56 AM (7 years, 2 months ago)

Geokills would recommend a Ira or Roth IRA depending on your situation.
If new to investing invest in s&p index fund tracking fund like (SPY) and let it sit or learn some more and be more hands on Inthe future

Cheers


--------------------
hmm...

"I'm naked and fearless... And my fear is naked."

"life isn't worth living without the threat of death"

"I got my plans in a ziploc bag, let's see how unproductive we can be"

"nobody lives their lives fully except for bull fighters"

My Trade List


Extras: Filter Print Post Top
InvisibleAhab McBathsalts
OTD Windmill Administrator
Other User Gallery Ultimate Champion: Blackjack


Folding@home Statistics
Registered: 11/25/02
Posts: 35,109
Loc: Wind Turbine, AB Flag
Re: so i came into some money [Re: trscstghst]
    #23879034 - 11/29/16 05:39 PM (7 years, 2 months ago)

Yes. IRA or Roth, depending on your current taxable income.

In the meantime I'd pick up a few personal finance books and work through them over the next few months. You aren't missing out by leaving it in the money market account for a while.


--------------------
"Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."


Extras: Filter Print Post Top
Offline5150
phantom
 User Gallery
Registered: 09/01/06
Posts: 5,437
Last seen: 4 years, 2 months
Re: so i came into some money [Re: Ahab McBathsalts]
    #23881769 - 11/30/16 01:55 PM (7 years, 1 month ago)

Buy storage units,buy  old rv,s fix em up,flip


--------------------
"the way of the warrior is the resolute acceptance of death"

Miyamoto Musashi


Extras: Filter Print Post Top
Invisibletrscstghst
stranger
Male


Registered: 10/14/07
Posts: 786
Loc: here
Re: so i came into some money [Re: Ahab McBathsalts]
    #23881906 - 11/30/16 02:41 PM (7 years, 1 month ago)

Quote:

Ahab McBathsalts said:
Yes. IRA or Roth, depending on your current taxable income.

In the meantime I'd pick up a few personal finance books and work through them over the next few months. You aren't missing out by leaving it in the money market account for a while.




is there any reason to put it in a retirement account rather than just a regular brokerage account other than to avoid paying tax on the earnings until later? 

I would rather have the funds available whenever I come across a situation that I need/want to use the money for whatever might come up.  I already have a retirement account with my employer. 

since this is inherited/gifted money, there is no tax liability on my part.  so since there were no taxes paid on the money,  can I even put it in a roth.  I thought with a roth you were contributing after tax dollars, with the benefit of not having to pay tax on your earnings.

or is putting it in a roth like the best of both worlds?  no taxes paid up front seeing how it isn't taxable and no tax when I eventually draw from it as well. 


--------------------
Why use up the forests which were centuries in the making and the mines which required ages to lay down, if we can get the equivalent of forest and mineral products in the annual growth of the hemp fields?
o Henry Ford


Edited by trscstghst (11/30/16 02:51 PM)


Extras: Filter Print Post Top
InvisibleAhab McBathsalts
OTD Windmill Administrator
Other User Gallery Ultimate Champion: Blackjack


Folding@home Statistics
Registered: 11/25/02
Posts: 35,109
Loc: Wind Turbine, AB Flag
Re: so i came into some money [Re: trscstghst]
    #23882290 - 11/30/16 04:32 PM (7 years, 1 month ago)

As a Canadian I can't tell you because our deferred tax plans are different.

It would also depend on projected income bracket in retirement, current tax bracket, your current amount of retirement savings, any large expected upcoming purchases, current income level, any dependents, if you have any excess room in your 401k and any expected situations that you can take advantage of early withdraw situations, how your life insurance situation is, interest rate on your mortgage, any vehicle loans outstanding.

Most financial professionals don't advise keeping more than 2 or 3 months of expenses in cash, but there is a laundry list of situations that could change what the "best" possible use of the money is.

Finding a for fee advisor is another option. These financial advisors work on a fixed upfront fee and examine your financial situation, but are not licenced to sell you any products (mutual funds or the like). For a couple hundred bucks they can probably give you the best advice, but they are often difficult to find. But again, i'd probably say buy a book or two and don't rush any decisions.


--------------------
"Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."


Extras: Filter Print Post Top
Offlinefinalexplosion
Stranger
Registered: 11/04/16
Posts: 370
Last seen: 7 years, 1 month
Re: so i came into some money [Re: trscstghst]
    #23883003 - 11/30/16 08:51 PM (7 years, 1 month ago)

Quote:

trscstghst said:
30k to be exact.  at the moment its just sitting in a money market savings account drawing 1%.

so I was thinking since I don't need it to live at the moment I should just sit on it and wait for the stock market to take a downturn, then try to get in on the bottom in some mutual funds.  does this sound like a sound idea?

or should I start investing it now?  I want to keep at least 10k liquid for emergencies. 

another option would be to use it to go to a vocational school to learn a skilled trade (i'm in my early 30's)  so I can just make more money at work. 

or should I just throw it at my mortgage.




I would drop a significant amount on mortgage at the end of the year or whenever you are able to pay down X amt on principle. Yes, keep liquid 10k of cash. If you have absolutely no knowledge on investing, keep it simple, and avoid mutual funds. Look at low cost index fund annuity. You are still a young man. Set it up so that you have access come retirement time. Keep putting tidbits of money toward your plan. Little through your 401k straight off your pay, annuity @ 10cents on every dollar, and just stack assets. If its not an asset, do not allocate resources towards it good sir.

Many investment advisors take up large percentage on things like mutual funds and make money selling you nonsense. I play the stock market a tiny bit, I do some online betting, and its all recreational. Similar to Vegas, nobody beats the house especially for long. The stock market crashes. For every anomaly victory, there is a graveyard of people gone bust.

If you have no fucking clue what you are doing, look into low cost index fund annuity. Play it safe. If there was a quick and easy fix, everyone would do it.


--------------------
The light of wisdom is driving away the darkness. Look at the ground. Now you can see your own shadow. If you are scared by the shadow that follows you, just remember, wherever shadows fall, light is always nearby.


Extras: Filter Print Post Top
Invisibletrscstghst
stranger
Male


Registered: 10/14/07
Posts: 786
Loc: here
Re: so i came into some money [Re: finalexplosion]
    #23883575 - 12/01/16 03:13 AM (7 years, 1 month ago)

well I think I will just take the advice about sitting on it until I have done my due diligence and read some books. 

I do sometimes listen to dave ramsy or maybe its clark howard.  idk they are both on the same station on the radio.  don't listen to it often though though, but something I hear one or both maybe idk say a lot is. that annuities should be avoided at all costs in most situations.  they tend to talk badly about people who sell them and they recommend growth stock mutual funds for long term growth, and transferring that to less risky investments as you get closer to retirement.  the problem I see with that is what happens if the market takes a major downturn right before you retire?  your fucked.   

I guess I am just going to have to go about this like anything else and educate myself. it will be like school, forcing myself to learn about a subject that bores me to death.  I will be doing it for more than just a grade though


--------------------
Why use up the forests which were centuries in the making and the mines which required ages to lay down, if we can get the equivalent of forest and mineral products in the annual growth of the hemp fields?
o Henry Ford


Edited by trscstghst (12/01/16 03:18 AM)


Extras: Filter Print Post Top
InvisibleLunarEclipse
Enlil's Official Story
Male User Gallery

Registered: 10/31/04
Posts: 21,407
Loc: Building 7
Re: so i came into some money [Re: trscstghst]
    #23883702 - 12/01/16 05:48 AM (7 years, 1 month ago)

Quote:

trscstghst said:
well I think I will just take the advice about sitting on it until I have done my due diligence and read some books. 

I do sometimes listen to dave ramsy or maybe its clark howard.  idk they are both on the same station on the radio.  don't listen to it often though though, but something I hear one or both maybe idk say a lot is. that annuities should be avoided at all costs in most situations.  they tend to talk badly about people who sell them and they recommend growth stock mutual funds for long term growth, and transferring that to less risky investments as you get closer to retirement.  the problem I see with that is what happens if the market takes a major downturn right before you retire?  your fucked.   

I guess I am just going to have to go about this like anything else and educate myself. it will be like school, forcing myself to learn about a subject that bores me to death.  I will be doing it for more than just a grade though




The stock market bubble is about to burst, granted I've been saying that for a while, but I think all time highs are clearly not warranted.  US Treasury Bonds, a huge market, is getting whacked hard and interest rates are going up, which is how the bond market works.  All that money earning 2-3% is historically so low as to be very concerning.  Normally the 10 year rate might be 5% and often has been more in the past.  So stay away from bonds, the interest you make will be little compared to how much $$ you can lose when the rates do move up.

I think if I were you I'd keep 15k out, get 5k of it in cash, keep the other 10k in your money market.  The remaining 15k I'd put into my mortgage, IF I had equity in the house and if I'm sure to keep that.  No point chunking extra money in if there's any chance of foreclosure, or if the market craps and you lose your equity in the property.  Otherwise, I like the idea of paying off a mortgage early, other than losing the tax break on the interest.  This assumes your itemized deductions will be more than a standard deduction.

I'd skip the IRA idea, Roth or otherwise.  Avoid tying up money in those programs that as you point out if you need you will pay a penalty on.  I paid 10% penalties on some IRA and 401K money because I was under 59 1/2 but needed the cash at the time.  Then to pay income tax on that money sucked as well.  Basically at some point it's better to pay the tax and keep the money out of their hands.


--------------------
Anxiety is what you make it.


Extras: Filter Print Post Top
Invisibletrscstghst
stranger
Male


Registered: 10/14/07
Posts: 786
Loc: here
Re: so i came into some money [Re: LunarEclipse]
    #23883745 - 12/01/16 06:34 AM (7 years, 1 month ago)

yeah I can remember when the market went down in 2008 09 hearing on the radio everyday how the stock market was reaching record highs day after day.  just like now.  so that's why I was just going to sit o n it until the bubble does burst.  then put my money in and cash in on the next bubble


--------------------
Why use up the forests which were centuries in the making and the mines which required ages to lay down, if we can get the equivalent of forest and mineral products in the annual growth of the hemp fields?
o Henry Ford


Extras: Filter Print Post Top
Invisibletrscstghst
stranger
Male


Registered: 10/14/07
Posts: 786
Loc: here
Re: so i came into some money [Re: trscstghst]
    #23883748 - 12/01/16 06:37 AM (7 years, 1 month ago)

to me it seems simple.  listen watch the news.  when things are going really good hold on to your money.  when they go bad give em your money cause all the stocks are on sale.  then sell them when the sale ends


--------------------
Why use up the forests which were centuries in the making and the mines which required ages to lay down, if we can get the equivalent of forest and mineral products in the annual growth of the hemp fields?
o Henry Ford


Extras: Filter Print Post Top
Jump to top Pages: 1

Bridgetown Botanicals Shop: Bridgetown Botanicals


Similar ThreadsPosterViewsRepliesLast post
* How to Retire Richly - [a discussion of 401(k), IRA, and Roth IRA retirement accounts]
( 1 2 all )
geokillsA 8,561 32 01/04/08 06:47 PM
by geokills
* Choosing a Roth IRA gluke bastid 1,154 4 05/21/08 03:35 PM
by PsychoChipmunk
* Penalties for withdrawing Roth IRA funds LearyfanS 864 3 03/03/09 06:22 PM
by Brasco
* Got $7,500 to invest...help?
( 1 2 3 all )
gogrowgo123 11,518 45 04/03/08 06:28 PM
by Techno_Raver
* so i have a little bit of money nalyudi 1,174 4 05/17/08 02:48 PM
by geokills
* STOCKS - An Intro Tutorial & Ongoing Discussion
( 1 2 3 4 ... 289 290 )
geokillsA 296,602 5,797 01/29/24 08:05 AM
by geokills
* Altria, Phillip Morris, and Cigarettes Ferris 1,605 9 05/31/08 05:28 PM
by Veritas
* first time stock buyer youbreakyoubuy 1,480 13 10/29/08 10:30 AM
by badchad

Extra information
You cannot start new topics / You cannot reply to topics
HTML is disabled / BBCode is enabled
Moderator: geokills, automan
677 topic views. 1 members, 1 guests and 0 web crawlers are browsing this forum.
[ Show Images Only | Sort by Score | Print Topic ]
Search this thread:

Copyright 1997-2024 Mind Media. Some rights reserved.

Generated in 0.023 seconds spending 0.007 seconds on 14 queries.