How should a single mom of one invest 100,000 today.

Question

Mother is 41 years old, has no debt, no property, excellent credit, and 1 elementary school age child. She'll be moving to Florida. Should she buy a house? or rent? The question really is how can she provide for a safe future for her child and herself with this money?

Answer 1

There are a number of financial instruments available for you to help you make your money work for you. You have fixed income securities, equity investments, and speculative investments. Each has it's advantages and disadvantages.

Depending on your present needs, future cash flow expectations, risk appetite, and return expectation, a combination of these financial instruments may help provide future cash flow for both you and your child.

It might be best that you consult first with an independent financial advisor. Not all financial advisors are the same. Choose one that will charge you a fee for their services. Beware of financial advisors who offer their services for free. They usually make money off the products that they will sell to you. The advice you will receive from such advisors may not be in your best interest.

Good luck!

http://jsforex.blogspot.com

Managed Forex Accounts

Answer 2

1. Rent for a few years to let the housing market shake out, then start looking to buy.

2. Don't invest in the stock market, especially in historically turbulent times such as this.

3. The best you can do with saving rates is put most of the money in a CD. Shop around for the best rates. Don't be afraid to use a reputable internet bank if they have the best rates.

You want to protect the money you have so do the following:

4. Get disability insurance. Not the run of the mill policy but a good one. This can be obtained even if you're not employed. For more information, see one of Suze Orman's books.

5. Make sure you have good health insurance. This can be obtained even if you're not employed.

Answer 3

There are many types of investments you can do.  You could invest in the stock market.  Stocks have the possibility of high returns, but they have high risks as well.  If you are looking for something safer, but still with decent return, I would suggest that you look into mutual funds.  They are diversified and are thereby less risky.  Plus, they are professionally managed, so you don't have to worry about knowing what stocks or bonds to buy.  For more information about stocks, mutual funds, and investing in general, I would recommend that you check out Investopedia ( http://www.investopedia.com/ ).

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, Ameritrade, and Schwab. Their customer service is excellent and their website is easy to use. I would definitely recommend you to check them out.

Answer 4

I would buy a house and put the rest on a rent house because you always want it have money coming in somewhere. What about a CD in the bank. You can also do bonds and put it back for college.

Answer 5

With housing prices at all time lows, it is a buyer's market, meaning it is a very good time to buy a house.  This is especially true since you have cash.  One of the reasons house prices are so low is that banks are scared to lend money right now to anyone other than people with the very highest credit ratings.  But if you don't need a bank loan, now is a great time to buy.  You mention you do have excellent credit so that would allow you to borrow a bit if you wanted to.  One great thing about borrowing to buy a house is that the interest is tax deductible so if you can borrow, you might want to do so and invest the cash you have in stocks.  Also, if you are hoping to send your child to college, investing some of this money in stocks would be a good idea.  A good way to set this up is through a 529 plan.  More info on that can be found at:

http://www.collegesavings.org/index.aspx

Stocks are great LONG-RUN investments so with at least 10 years to go before you need the money, I'd put at least 75 percent in stocks.  However, diversification (having more than one type of investment) is critical.  That means you might want to put say 15 percent in bonds and 10 oercent in CDs.  Also, when you buy stocks, buy an index fund or exchange traded fund (ETF).  Do NOT put $75,000 in one or two stocks.

Good luck to you!

Answer 6

look for an inexpensive home with a good loan, with excellent credit it should be easy in todays market,  and put the rest of ther money in a CD.

Answer 7

I would put half in a CD for a few years while I research a business plan.  And the other half will secure my move to Florida.  Because of uninvited problems might pop up during your move.  Got to be extra careful when moving out of state.  I would rent an apartment to allow myself to get to know some areas before I buy a house.  So half for the future and half for now.  Take it slow and do alot of research in an area first.  Rent and then buy a house.  There are alot of business paths with 50,000 dollars.  Find out what you would do for free and love.  And research that passion of yours and go for it.

Answer 8

Many of the UKs landlords who made loads of money on buy-to-lets in this country are now buying in the US rather than the UK.

There are many repossessed properties in the US at 'knock down' prices.

If you can buy in cash - why not look at buy to lets in Florida?