My wife and I are going to receive over $100K tax free. What's the best investment for it?

Question

It's a payment from the U.S. government and is nontaxable by statute.

Answer 1

These are financially turbulent times.   You might just want to put it into bank CDs.  Is the tax-free money from an inheritance?

Answer 2

i think Boeing because they're new planes are going into service soon

Answer 3

long term cds

Answer 4

send it to me then you don't have worry about it

Answer 5

Purchase Mega Millions or Powerball lottery tickets.  Think of the potential windfall!

Answer 6

put it in a ing savings account....highest interest rate anywhere...If your not going to risk it or spend it, sit on it and collect interest

Answer 7

Me... I'll pay you back... really

Answer 8

Congratulations!

Since we seem to be in the start of a bear market, do this:

1) Initially put the money in an account where you have easy access to it even if it is a low interest yielding account. Then go on to "2" below.

2) Start a low-cost balanced mutual fund and make a relatively small deposit into it initially. (Use a mutual fund with a low yearly expense ratio and minimum load fees. I'm recommending a balanced fund with investments spread out over stocks and bonds. One that covers multiple economic sectors as well if possible.)

3) Make sure that capital gains and dividends in the mutual fund are re-invested automatically to ensure dollar cost averaging.

4) Periodically, (every few months) keep depositing small amounts from your cash account referenced in "1" above to your mutual fund. This way, you're doing dollar cost averaging into your mutual fund and buying shares at varying costs getting the most bang for your buck.

Answer 9

I think you should trump the Y!A monster and make your own forum/answers website.  Call it...B!A.  Anytime someone gets a violation, their credit card gets charged a small fee.  You'll have to insert some incentive to sign up though.  Maybe, a free can of Sprite after 1-year of membership or when they reach Level 47.

I'll let you work out the details.

Answer 10

Congratulations

You can look into some muncipal bonds that will provide you tax free income.   The interest rate is not that high, but the bonds are nearly risk free, and guaranteed.

Although $100,000 won't build you a what is called a true bond ladder (you receive interest on a monthly bases) but you could speak with one of the major brokerage firms and speak to some one who knows muni's

You can also speak to some one from John Nuveen & Co, http://www.nuveen.com/ although they specialize in high end clients, they also have tax free products that will serve you well

In the meantime spend a few bucks and buy the book "Rich Dad Poor Dad" by Robert Kiyosaki.   It's an easy read and will open other investing ideas for you,

You can go to the MSN.Money website

http://moneycentral.msn.com/home.asp  it has an entire section on mutual funds and Exchange Traded Funds.  Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information.  I have found that Vanguard & Fidelity can meet your needs for mutual funds.  The service and information they provide is all free and you will find it helpfu

I've tried to give you some advice based on experience, without getting into definite investments do to regulatory constraints

Answer 11

I would say gasoline, college funds for children or something sparkly for your wife are all great options.

Also..referring to a previous question you asked...

You could use the money to start The Church Of Bill.

(Also a tax exempt investment)

Answer 12

Paperclips.

Think about it.

If you have enough Paperclips, you can make ANYTHING. Make a fence and keep people out, make a rope and go skydiving, although I don't recommend it-

Or furniture, that works too.

Answer 13

Please don't listen to the other on here. You really need professional advise. Don't ask people that give opinions. Ask those that specialize in investments. A few ideas would be to call a financial planner, cpa, laywer. Read rich dad poor dad. Please don't spend any of the money for your investments until you seek the proper legal advise. Other wise your money will be gone before you know it!. Good luck!

Answer 14

Congrats on your windfall, guard it well and do seek some professional  advice. Most banks have professional financial planners who offer good safe services with little to no fees if

you invest with them.  Check out your local bank first and go from there.  Good luck! I'm happy for you.

Answer 15

I don't know of many ways you could get your hands on 100K "tax free". I mean, technically even if someone on the street walks up and hands you 100k you have to pay taxes on it....

If it were me, I would probably invest half in some sort of low risk mutual fund and use the rest for startup capital for a business venture.