How would you flip this money?
How would you make it 200K
9K+9K into two different re-rolling* investment accounts, in two different banks, for my nephew/godson. 4.5K+4.5K for his sister (not because she’s female, but because she’s not my goddaughter).
The rest would get split into a retirement account which it’s about time I started and those same re-rolling accounts.
- I have no idea what the proper term actually is. I mean the kind where any money gained gets added to the principal and the whole thing reinvested so long as you don’t give a different order.
Put it on red.
I wouldn’t invest in any companies or governments, I know that much. Putting it on red is seriously as good a choice as any, you have almost a 50% chance of doubling it immediately. Anything else only seems like it has a chance of growing. Everyone thinks they’re so smart with their locker-room, CNBC “tips” and then they cry and bitch when all their money is stolen from them. “Way it goes.” Right now I’d seriously be compelled to convert it to yen and stuff it in my mattress. Don’t let anyone in the “financial services industry” come within 100 yards of it, that’s for damn sure.
Outstandiing, Thanks!
1
Right on, Thanks
In my mortgage.
I’ve recently invested an equivalent sum in my wife’s medical degree training. Over the next 30 years I expect the increased salary and pension benefits to pay for the initial investment and add a significant sum on the top.
This is not a low-risk strategy and will take time to pay out, but it should get there in the end.
Pay debt. I’ve got 60,000 between student and auto loans, at interest rates between 3% and 8%. There’s no way I could reliably make more from investments. I’m also about to start grad school, where the gov’t will kindly let me stop paying some of those loans, and pay the interest in the meantime. That will still leave me with a $30,000 private loan which I can defer but I still have to pay the interest. Which is variable at 3% currently, but I’m guessing rates can’t stay that low for much longer.
The rest, I’d just sock away as an emergency fund.
Anything that doubles your money is going to take either time or a lot of risk, or some compromise between the two.
Kaltkalt’s “Put it on red” answer represents the extreme of high-risk, zero-time.
At the other extreme is bonds (I’m disregarding savings accounts since they typically don’t keep up with inflation).
Me? I’ll split it up into several mutual funds and wait a decade.
This thread will probably get moved over to IMHO.
My current “need” is college savings - so it would all go into a 529.
You can’t “flip” $100k to $200k quickly and risk free. If I were going to try, I’d do it via blue chipish dividend stocks with dividend reinvestment, about $10k each in a diverse selection of stocks - but it would take years to double - about ten.
Pay down the mortgage enough to ditch the PMI
Talk to a professional about what to do with the rest.
Since the OP is looking for personal opinions, this is better suited to IMHO than GQ.
Colibri
General Questions Moderator
Id pay off my mortgage, so I suppose the return would be the 6.6K per year I pay out, as well as the removal my interest rate exposure on the mortgage.
It would pay off over half our mortgage, and as that’s what we are really working on right now, that’s what we’d do. What would it gain us? Over fifteen years of no mortgage payments, and a HUGE chunk of peace of mind. I wish it really would come our way…
A pertinent question for me, as my wife and I have just inherited about half this amount. We’re probably going to speak to a professional about how to invest it, but I’m thinking we’ll seek low-risk investments, as I’m invested in the stock market with my 401(k). Any opinions?
I’d go with the 529 as well for the kids, though I would go the pre-pay route and be done with it. Anything left over, which might be 10k or so, into a Roth IRA.
I wouldn’t pay off any of my mortgage right now, since I’m on variable rate and the UK base rate is at what must be an all-time low (0.5%), so it’s effectively an extremely cheap loan. For now I’d stick it in some kind of investment account until mortgage rates rise above what I can get that way (after accounting for tax).
I think we’d pay off my wife’s law school loans, since the interest rate is kind of high. Beyond that, I think we’d use some to buy a new car outright, and invest the rest in mutual funds, with the intention that they make more return over time than putting it in our house would build in equity (which shouldn’t be hard, considering our house value has stayed flat for 4 years).
Pay off my student loans and sock the rest into a huge down payment on a nice place to live.