What should I do with $40,000?
I have $40,000 and I don't know if I should invest it, buy gold, start a business, or what? I want it to help me somehow.
I have $40,000 and I don't know if I should invest it, buy gold, start a business, or what? I want it to help me somehow.
JcL
Favorite Answer
No one can tell you without knowing your financial situation (own a house, what is mortagage, car loans, college loans, kids, age, have any retirement, etc.)
Buy some books on investing (Peter Lynch, Susie Ormond, Jim Cramer, etc.) and read them. If you are still confused see a financial adviser. But read up before seeing one, or you won't understand what they are talking about and they could give you bad advise.
You may want to put some in municipal bonds (tax free) if you have to pay tax on the 40K.
?
According to the most of the economists of USA the dollar will come down horribly in some next years and it will bring down all the paper money of the world so it will be a safer for you to convert 75 percent of your money into the Gold and invest the rest in some mutual funds or invest some in the stock exchange and you can also start some small business to get your self busy and the sake for some activity in the case of you don't have any. Good Luck
Cynthia
If you own a house, pay it off (or refinance the house and immediately lower the balance by putting most of the money in the principal of the house). If you don't own a house, this is the perfect time to buy one. Buy a small house to start with if $35,000 is enough to put as a down payment in your area. Save $5,000 for any problems you may have with the house or with your car (if you have one).
If you already have a paid-in-full home, you need to diversify your investments with your $40,000. Gold is a good investment for about 10% of your money, invest in mutual funds that are not too risky in your 401K or in an IRA (Roth or Traditional, depending on what you want your taxes to look like).
Also, if you have a job and depend on the job for a living, make sure you have at least a year's worth of living expenses in your savings in regular savings account or 6 month CD in case things go bad with your job.
If you already have a year's amount of living expenses on hand (in addition to the $40,000), then you can think about investing in mutual funds, gold, etc.
Anonymous
the best thing to do with 40,000 is to invest it in mutual funds but not gold. yes gold is up in the market but if you look at the track record it has you will find out that the rate of return is bad. get with a good financial adviser and spread it out through different mutual funds. look at the track records you wont to invest your money in a mutual fund with a good 10 to 15 year track record. and leave your money in them for at least 10 years and you will get around 12% back on your money. if you go to daveramsey.com they might have some more good ideas for you
Monica
You can open a mutual fund (get help from an expert with this) and also put some in gold.