If somene gives you 100,000 US dollars, what would you avoid doing?

Question

If somene gives you 100,000 US dollars, what would you avoid doing?

Answer 1

spending it all at one time is not a good move.  put it in a good bank 75 percent in a cd you will get a good return on your money.20 percent in the stock market.  5 percent in your checking account.    put a down payment on a house. it is a buyers market right now.  land is the best investment you can make.  even though housing market is down now it will come back.  you can use the 5 percent for the down payment.

Answer 2

I would avoid doing NOTHING.  Put the money to work immediately.  Most individuals would spend it (or a portion of it) on discretionary items rather than invest it.  Merely putting $100,000 in a money market account would garner an extra $3,000-4,000 per year.  CDs would be slightly more and if you want an even larger return, mutual funds would be a good idea for at least a fraction of the money.

Ron

Answer 3

Getting too overexcited

Answer 4

telling people on the net you got $100,000 (incidently where do you live ?)

Answer 5

Avoid the lifestyle change.

If you do invest it, spread it out - diversify your holdings.  When investing, keep a stockpile of that cash as well.  It is a really bad idea to be fully invested, and not diversified.

Answer 6

I would avoid making a lifestyle change based on $100,000.  It may seem hard to believe, but it's not really that much money if you begin spending it.  You might get two new cars and down payment on a newer house, but will your current salary really be able to keep up with the "new lifestyle."

I also would not make any hasty investing decisions. Go slow.  Get smart, not greedy.

If this has really happened to you, be careful and good luck.  "To whom much is given, much is expected !"