How can i invest this money.

Question

I am 19 years old and my dad gave me $ 120,000 thousand dollars. Right now i am studying in school. I am in an institute i will grauate in december. And i plane then after to go to california to study for six months. To get a other diploma. So i already plane from that money to pay that study which is 15,000 thousand dollars. And set aside 5 thouusand for the rent over there. so i am left with 100 thousand dollars. From the 100 gran i plan to pay credit cards that is 3 thousand and two thousand to buy clother.So now i have 90,000 thousand dollars how can i invest this money and in what should i invest this money. My mom says i can put it into a cd. But that to me does not give a lot of money what stocks are good to buy and profetable. Or waht are other investments can i use this money on. please help me

Answer 1

I  would buy two EFTs.  One in the biotech area such as the BBH.  And the other in technology via the XLK.   Use a discount broker.   I would consider placing the money in an IRA if you have worked this year and last year.   It will not be a large part of your cash but will protect you from spending the money on some friend's business idea.  I am not clear about the education you are pursuing.   I would consider a bond fund such as the the tax free MUB.   A collection of muncipal funds.  Forget the alternative energy stocks because you are not apparently interested in watching your investments closely on a daily basis.    

Answer 2

With that kind of money you have a lot of different options. I would HIGHLY recommend seeking the advice of a fee-only certified financial planner.

If you are interested in actively managing your money you can invest in different stocks, you can do your own research to find stocks that would be worthwhile investments.

If you are not interested in actively managing your money (it's a lot of time and effort) you can either give your money to a professional money manager or invest in a mutual fund.

Good luck.

Answer 3

A fool and his money are soon parted.

Answer 4

Any investment you choose, you want to see a return over time. Rare coins are a good investment, RE is a good investment even now as RE is coming back as far as resells. new construction is still down and finally forex the investment in currency is good but beware of companies that charge fees and make claims of three hundred percent profit as you will lose your money there. I am a retired banker and have many resources that can help you in your endeavor. If you write to me at bankerbobretired yahoo I will be more then happy to help and no I do not charge fees for advice. I also do not refer people who need help to any one who charges fees as I feel the whole point of this format is for some one to ask a question and hopefully receive sound advice. The bad thing is there area lot of people who have no concept of investments and give some pretty poor advise like some of the answers you received. I agree with your idea to pay for the college up front and to have funds for rent but you forgot other living expenses. As far as Financial planners, there are some good ones but remember they all charge fees and make money based on what they can "sell" you on for investment. Again contact me and I will be more than happy to Help you in your endeavors. Bob

Answer 5

You father's an idiot.  Why would he give $120k to someone who doesn't understand numbers.  

The word is PLAN...the word is GRAND.

Give it back and ask your father to guide you.  

Answer 6

CD's definitely do not yield enough money.  In fact, the interest from CDs barely cover for inflation so at the end of your investment, your money might still be worth the same.  Stocks are definitely a better choice in the long run.  I don't want to recommend any specific stocks for you, but if you are not sure what to choose either, you can look into ETFs.  ETFs trade just like stocks, but they track an index or industry sector.  Therefore, when you buy ETFs, you're basically buying a diversified collection of stocks.  Another investment choice you can look into is mutual funds.  Mutual funds are also collections of stocks and bonds.  However, they are slightly different because their holdings are actually picked by a professional.  Nevertheless, ETFs and mutual funds are both great investment choices.

Regardless, of what you choose to invest in, you will need to open a brokerage account. I currently use Firstrade ( http://www.firstrade.com/ ). They are cheaper than big name brokers such as Scottrade, Etrade, TD Ameritrade, and Schwab. Their website is very easy to use, making them great for beginners. I would definitely recommend you to check them out.

Answer 7

Do not invest any money in real estate, or CD's.  Hold $10,000 in savings in a money-market fund, and $10,000 in physical silver plus a few gold coins.    Purchase $20,000 in Martha Stewart Living, stock symbol MSO, below 7 1/2.  Purchase $20,000 in Hecla Mining, stock symbol HL, below 7 1/2.  Purchase $20,000 in Exxon, below 80, stock symbol XOM, write call options on positions.  Buy in lots of 100.  I retired at 54, I live in El Paso, Texas, I also have a house in Ruidoso, New Mexico, plus I hold the note for another in Ruidoso.