What do I do with 50 grand??? I need advice...?

Hi, I just got out of the army and now I have 50 grand cash from deployments that Ive saved. I have a job now and I can pay my bills and etc. just fine but I need some advice on what to do with this money. I dont want to hold on to it in the bank because Ive heard that the value will just decrease and with inflation and everything the interest wouldnt make any difference. I like real estate. Any advice?

I suppose it depends on how much risk and return you want. I am assuming that you don't want to waste the money on shopping or holidays, otherwise you would hardly have needed our advice.

Most savings accounts will offer very low interest at the moment, but they will protect you against inflation. The risk is virtually zero, since the UK Government guarantees all private deposits of up to 50k in any single bank account(if you have more, split it between your accounts for total safety). If you place it in a long-term savings account, you can still get 4% per annum, a fair premium above inflation in the next year at least.

You could invest in property. The sum would be a fair deposit on a home, although you would need a partner or a regular income to supplement it. Historically this is the best option. Investment in UK property in the next couple of years looks unwise, but Eastern Europe and Spain(perhaps in a years time) look good options for growth. I think this is always a good long-term bet. You can derive a rental income, and with your capital, you should have easy access to credit at relatively low rates(at least in the near term).

If you want risk(and therefore a chance to grow your money), invest in equities. You can choose your risk level. I have most of my savings in shares, and I do it myself. Most of my capital is in big companies(FTSE 100 types like BT and BP), but I also have smaller amounts in more December because share values are historically low. They may yet go lower in the short term, but longer term these are sound investments with good returns likely. If you don't know so much about shares, you can go to any high street bank and they will put you in touch with someone who will(for a small %) make these decisions for you. They can make their decisions based on your instructions(regarding degree of risk), and help you avoid paying tax(where possible).

Final option is perhaps the best for you(from your description). 50k could be invested in a pension fund. The Government will allow you to invest up to 100% of your salary in a private pension. Tax is refunded on this. Say you earn 32k a year. So 24k a year after tax etc. If you invest 24k in a pension, the government add 8k to it, and your pension fund shows 32k. In two years, you could invest your 50k, and your fund would be at almost 70k. You can then add to this whenever you like. The pension company invest the money(after instruction from you about the risk you need), you follow its progress annually, then collect a lump sum(up to 25% if you want) and income when you retire. Historically, the money will grow at between 5-8% per year. Someone with 70k in their account retiring today would collect a payment of 4-5k per year on top of their state pension(the would be taxed, but at a fairly low level unless you had other incomes). But you could expect much more because your money would almost certainly grow over that period of time. Again, I have some money in these funds. I use a broker linked to Nationwide Building Society, but any High Street Bank will help you.

As I said, it depends on your priorities. The more risk you take, the more likely you are to make money(such is life). It depends on how badly you might need this money in the future, and if you are prepared to leave the money in for a long time. I hope you invest in wisely, because this government(UK) has done little enough for the military over the years. Good luck!

First rule: don't loose your money
Second rule: don't forget rule 1.

You are NOT in a hurry. Why not put the money in a good bank account and start reading a lot about investing etc. For instance www.fool.com is a very good place to start and most of the site it is free.

give it to me...I need it real bad

well firstt gimme some!

then pay your rent and everything and ur bills and then take urself for a nice day shopping and maybe lunch maybe hit the club or the strip joint and get alot of lap dances. lots of drinks.
get alot of drugs.

and yeahh ur set
put the rest away to save so u can pay ur bills and **** for awhile.
dont spend it all at once..save it

till you become savy in investing (1-5 years) I suggest you put the money i n CD's
Spread it around with 30-90-1yr CD's
ask you bank about information.
then find a institution that provides the best interest for the term you looking for.

next would look at stocks that have kept thier price during this down turn.
then look if they have dividends and are still paying.
then check the % return in the divdends.
Then look for companies that fit the above but allow direct purchase.

If you can pay your bills with the job you have now, I would take the 50 g's and start a CD, with a good interest. You will make some money on this and your money will never lose it's value. Or take 25 g's and put it into a CD, and take the other 25 and use it as a downpayment for real estate on a condo or something, which in turn you can rent out to a potential loyal and dependable tenant. For now I would just put it into a CD. Speak to your local bank or where ever you do you banking.

Good Luck

Invest it in real estate, try going to auctions and look for properties that are in need of renovation, spend a few thousand on the home, wait for a while and then sell.

Spend & Enjoy it! You could be dead tomorrow.

if you don't mind me asking invest in my business please.

investing is a great risky way to go.
i have a total of 18 online businesses need help, email me.
NBAballer99@yahoo.com

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