What to do with $15k?

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[ARCHIVED THREAD] - What to do with $15k?

Posted: 9/30/2008 9:13:20 AM EDT

My grandfather recently passed away and I was one of the beneficiaries of a life insurance policy. I have $15k and would like some advice about what to do with it.

I'm married with a 2.5 y.o. child. The only debt we have is our mortgage. I have an IRA and a mutual fund. The IRA gets 10% of my income. The mutual fund I add to whenever I have a little extra.

I was originally thinking I would put it into my mutual fund. It seems like it might be a good time to invest while the market is down, but I'm not sure. I've also thought about just putting it into a savings account. If my wife or I became unemployed, that money could go a long way towards covering monthly expenses fore quite a while.

With the current state of the economy I'm not sure what to do.

Thank you,

Max_Power

Posted: 9/30/2008 9:16:46 AM EDT

[#1]

Full-auto baby!

Get a M16.

Great ROI and you get to play with your investment. BSW

Posted: 9/30/2008 9:22:26 AM EDT

[#2]

I say mix it up

get a 5 or 10k CD. itll draw interest, be protected, but also available when you need (unlike IRAs, etc)

I would start a small savings account specifically for the lil one, put birthday money and such in there and get them to learn the value of money (a lil early right now) but you can start the savings.

Buy something nice for you, wife and kid or do a small trip, do something FUN, your grandfather wouldve wanted you to enjoy the money. Dont blow alot, jus do something you normally might not have done.

Aside from the "family" fun, buy yourself a lil something, this way youll always remember your grandfather when you see it.

Jus some ideas.

Posted: 9/30/2008 10:10:25 AM EDT

[#3]

Quoted:
I say mix it up

get a 5 or 10k CD. itll draw interest, be protected, but also available when you need (unlike IRAs, etc)

I don't know much about CDs. Are there penalties for pulling money out before they mature?

I would start a small savings account specifically for the lil one, put birthday money and such in there and get them to learn the value of money (a lil early right now) but you can start the savings.

I like that idea. Thanks.

Buy something nice for you, wife and kid or do a small trip, do something FUN, your grandfather wouldve wanted you to enjoy the money. Dont blow alot, jus do something you normally might not have done.

Aside from the "family" fun, buy yourself a lil something, this way youll always remember your grandfather when you see it.

Jus some ideas.

I already planned on that. The original amount was 20k. We never had a honeymoon so I'm planning on taking Mrs. Power on a nice vacation and buying us both a little something "just for fun".

Posted: 9/30/2008 10:40:44 AM EDT

[#4]

Buy Wachovia stock. It's a monster bargain at 3 bucks and change per share right now and the company is likely to recover well.

CJ

Posted: 9/30/2008 11:45:29 AM EDT

[#5]

I'd just sit on it for a while and see how things shake out.

Posted: 9/30/2008 11:46:10 AM EDT

[#6]

Quoted:

I'd just sit on it for a while and see how things shake out.

I figured youd say Silver/Gold.

After all SIlver just took a nasty nose dive. From 13bux to 11bux an ounce.

Posted: 9/30/2008 11:56:45 AM EDT

[#7]

Quoted:

I figured youd say Silver/Gold.

After all SIlver just took a nasty nose dive. From 13bux to 11bux an ounce.

Someone just gave him a nice cushion, you usually put those under your butt (at least for a little while).

Today just looks like a classic dead cat bounce as far as the market goes. He's not in a panic mode, it's more or less found money, so I'd guess he can wait for a bottom to firm up .
<shrug>

Posted: 9/30/2008 12:53:57 PM EDT

[#8]

If I decide to sit on it for awhile, where's the best place to put it? Mayonnaise jar buried in the back yard?

I'm a little disappointed with ARFCOM. Nobody has suggested hookers and blow yet.

Posted: 9/30/2008 1:00:50 PM EDT

[#9]

Quoted:
My grandfather recently passed away and I was one of the beneficiaries of a life insurance policy. I have $15k and would like some advice about what to do with it.

I'm married with a 2.5 y.o. child. The only debt we have is our mortgage. I have an IRA and a mutual fund. The IRA gets 10% of my income. The mutual fund I add to whenever I have a little extra.

I was originally thinking I would put it into my mutual fund. It seems like it might be a good time to invest while the market is down, but I'm not sure. I've also thought about just putting it into a savings account. If my wife or I became unemployed, that money could go a long way towards covering monthly expenses fore quite a while.

With the current state of the economy I'm not sure what to do.

Thank you,

Max_Power

Financials have been beaten ragged...check:

AMEX: UYG

Posted: 9/30/2008 1:03:37 PM EDT

[#10]

Little one's future college fund? That is already a good chunk to get started at a school.

Posted: 9/30/2008 1:09:45 PM EDT

[#11]

Quoted:
...

I don't know much about CDs. Are there penalties for pulling money out before they mature?

...

There are some no-penalty CDs out there, the trade-off usually being shorter term/lower rate. IMHO it is a decent compromise between a savings account and long-term CD for a portion (not all) of your money, and one you can access immediately without loss if necessary. I personally have some money parked in a 6-month no-penalty CD right now.

Posted: 9/30/2008 1:25:40 PM EDT

[#12]

I'm no financial expert but I recently came into a good bit of money and while things were in the process I kept saying when I get it I will put it into a 6mo CD and wait. For me the idea was get it in there and them decide what to do with it, This way it would be workig for me while I was thinking and not be tied up too long term. Of course I didn't do this and outzed around fro 3 months before I actualy did buy a CD. I think if you already do have it you should do something like this soon and then make a decision for the long term. Also pullin a little out for fun is a good idea. I heard some good advice once on a financal show that f you come into money it is a good idea to blow 10% of it to get it out of the way otherwise you might get too tempted to take a little here and a little there and befor you know it it is gone.

Posted: 9/30/2008 1:29:15 PM EDT

[#13]

Quoted:

I'm a little disappointed with ARFCOM. Nobody has suggested hookers and blow yet.

Well, this isn't GD.

Posted: 9/30/2008 2:55:04 PM EDT

[#14]

I reiterate: Buy Wachovia stock. It's going to increase manyfold over the next several months, or it will completely fold. Nothing in between.

I'd say, put a third of your money into that stock. Or half of it. It'll pay off, I'm sure.

The stock symbol for it is WB.

CJ

Posted: 10/1/2008 1:15:20 PM EDT

[#15]

Wachovia stock will be converted into citibank stock in January at approx.20 shares WB to 1 of Citibank. To buy WB right now is a huge gamble....... it might pay off however, wb bank stock will cease to exist in January. Wachovia bank securities division will remain, however, it is likely they will be bought as well.

Posted: 10/15/2008 12:49:09 PM EDT

[#16]

Bump for more ideas.

Posted: 10/15/2008 3:38:32 PM EDT

[#17]

What mutual fund? a Balanced fund? whats its ER? whats it tracking? what is your risk tolerance? is the MF tax sheltered or taxable? These questions are optional, but I'd diversify unless you like all yor eggs in one basket. Good Luck!

Posted: 10/15/2008 7:23:21 PM EDT

[#18]

You didn't say whether or not your family has six months living expenses set aside. Sounds like you're investing well in your IRA. I don't know shit about investing but I know a lot about being broke. Have six months living expenses in a cash account you can get to without paying obscene fees/taxes. I've heard lots of good things about ING's money market account. Not much interest (3.5% i think) but you can withdraw anytime you want. I hear great things about ROTH IRAs and I think you can cash out without penalties. I don't know if you'd be charged a fee to open one. Just put it somewhere you can get to it if needed. You never know when you or your wife might lose a job, car wreck, medical issues, etc..

Posted: 10/16/2008 5:36:22 AM EDT

[#19]

Leave it in an FDIC insured bank until the market stabilizes.

Posted: 10/16/2008 6:55:50 AM EDT

[#20]

Quoted:
Leave it in an FDIC insured bank until the market stabilizes.

Just leave it in my savings account?

That's what I was originally thinking.

Posted: 10/16/2008 3:17:41 PM EDT

[#21]

CD, shop rates

Posted: 10/16/2008 3:46:05 PM EDT

[#22]

Take the whole $15k and put it at ING Direct and get 3% interest and FDIC insured and you can get it any time you want with no penalties like CD's. If you check their ads in magazines you can get a $25 bonus when you open an account.
ING Direct

In these unusual economic times keep it safe! You will be very glad you did if you need the money. The layoffs in this country are coming.

Red

Posted: 10/18/2008 4:31:56 PM EDT

[#23]

I've been looking into CD's around town. One of the local banks is offering 4.25% on a 1yr CD and if monies are withdrawn early you only forfeit 30 days interest on the money you withdraw.

At least the 4.25% will keep up with inflation until you make a long term decision.

Just a thought.