How would you invest $100,000??

Question

I inherited money and im not sure how i will invest it.. Any wise folks out there know good ways to get a return on a big chunk of money?? I was thinking about buying a piece of land and putting storage units on it.. Any other ideas i would appreciate..

Answer 1

First, I would build a foundation to protect my family and my monies.  This is done by maximizing an umbrella policy, in case you get into some personal injury issues like a car accident.  I would in addition, purchase a whole life insurance policy, with a decent death benefit and disability rider.  Nothing too substantial, but maybe around 100,000.  I would also make sure I had some disability insurance, and about 6 months of living expenses in the bank.

Next, I would open and maximize my roth ira contribution.  Not only does one have to consider the growth of there monies, but the taxation at retirement as well.

Then I would consider my childrens education.  I would contribute to a 529 plan, which is similiar to a roth for educational purposes.  Nothing major, maybe 10,000 for each child, and place it into a balance investment allocation.

I would then consider placing the remaining amount into a stock and bond portfolio.  Nothing crazy, just something that is going to do well over time, and doesn't pound me on capital gains taxes each and every month, quarter or year.

Keep in mind that anytime you start dabling in real estate, or a business you must continuously put more monies into it.  Whether it be the advertising or the upkeep.  Sooner or later your dream, could potentially turn into a nightmare.

In addition, many people look at ways to grow there wealth first, rather than trying to protect it.  It doesn't matter how much money you have in the bank, if you accidentally kill someone in a car accident it's all gone.  Or if you do own a storage facility, and someone gets injured there, then you will spend more in litigation and lawsuits than you'll know.

Good luck, just my thoughts about the 100,000.

Answer 2

invest in a algae bioreactor.  Algae is being used to produce algae oil which is turned into biodiesel.

Answer 3

$10k in Forex trading and the rest in something with little-risk. Buy a Forex trading system and go to town.

What you do (and what I did) is make sure it has a 60 day money back guarantee first; then make sure you can use a demo account. Use the demo account for 59 days and if you see you can make profit you keep the system and invest your real cash. If there's no profit to be made you get a refund; there's literally no risk when buying one.

If you're interested I found reviews of the top 3 Forex trading systems: http://forex-tracer.the-perfect-solution...

Answer 4

Hello,

   I have invested more than 100k in foreign exchange asset management and I have more than 2 years experience in market and investment and made 5% to 20% more or less monthly , take a look if you are interested

Answer 5

This "INVESTMENT GUIDE" is more helpful for you to make your money to make money for you,without taking any risk.

To gain more information to get good returns,just gothrough the site http://www.savings4future.com

Answer 6

Do you have an IRA and earned income of at least $5000 per year?  Do you have an emergency fund of at least 3 months income in cash?  How much in retirement savings?  Have you thought about your risk profile?  Are you familiar with the investment market place?  Have you run a small business before?

These are questions a good financial adviser will ask you before answering that question.  They are important.  Good financial advice is a little like psychological counseling:  you have to get to know your client before you can help him or her come to the best financial plan for that person.

Off the top of my head, I would give you three bits of advice:

(1) If $100,000 represents "a lot" of money to you (one or more years worth of income) don't make any big decisions for at least 90 days.  You want to be sure to think things through and you want to take the time to consider all the options:  esp. those ideas that include exploring your passions and improving your long term income potential (like starting a small business).  But, you don't want to go into anything blind.

(2) Start by putting the money in a money market account and dont worry about a few percentages of interest here and there.  Vanguard Money Market Fund and INGDirect.com savings account are both fine.

(3) If you have made or will make at least $5000 this year and have not already done so, I would urge you to open a Roth IRA at Vanguard putting all the money in the Target Retirement fund for the year closest to the year you will be 68 years old.  You can continue to make this investment every year until the end of time.  If you put at least $10,000 in the money market (Prime) fund at Vanguard, this (IRA) account will be very low cost to free.

Answer 7

I'm not a broker, but, have been trading for many years.  I'm currently playing the penny market due to the huge upside.  It is risky due to most being scams, but, do some research on the following companies:

1.  SIVC  S3 Investment Company, Inc. (PINKSHEETS: SIVC), and its wholly owned Redwood Capital subsidiary, which assists private Chinese companies in accessing the U.S. capital markets through reverse mergers into public companies.

Investing in Chinese companies that have all operations in China but are traded on U.S. public markets.

Why: You get to participate in the China's growing prosperity with companies that must abide by American securities regulations and laws.

2.  WNYN  Warp 9, Inc. (OTC Bulletin Board: WNYN), the premier provider of robust e-commerce platforms and services.

I'm not a broker... just trade my retirement account and doing well with it.  I'm heavy into SIVC which is dipping a bit at the moment creating a great buying opportunity.  Go to http://ddmachine.com/ and check them out.  It is one of the few companies you will like more as you learn more about them.

Good luck in whatever your choice is.  :)

Edit to add:  I see a number of thumbs down.  My guess is that these people didn't actually investigate these companies.  Especially, SIVC since the more one digs the better it looks.  :)  And, that is rare for a stock in this price range.  SIVC specializes in Chinese companies that merger into US shells.  It is one of the most interesting ways to invest in China.

Why: You get to participate in China's growing prosperity with companies that must abide by American securities regulations and laws.

Answer 8

One Hundred Thousand dollars is no longer a large amount of money and certainly not enough to start a rental storage business.

You will need to concentrate on higher growth areas with that amount of money. Watch beaten down stalwarts that have high volatility and buy on weakness building a position over time. Consider financials with caution such as BAC a very stable commercial bank with plenty of capital to withstand the downturn caused by the liquidity and sub prime crisis. This stock also offers an 8.6% dividend and the CEO has already stated that he will not lower it unless consecutive quarters of decreased GDP are realized. That will give you plenty of time to react and build a respectable position on the cheap.

This is just my opinion however I am doing the same with almost the exact amount that you mentioned. Look to buy at below 30.00.

Answer 9

You could invest overseas at 7-10% with no risk and earn $7-10K annually. Ask me how (through my profile)