linlyons
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i think a 526 is the college plan.
i'm not sure of the rules, but that seems a good place to start.
by not sure, i don't know if there's a minimum time the money has to be in the account.
what are you going to study in college?
that's what you ought to be thinking about now.
what is it that will make you want to study?
btw, i'm fairly well off.
i just bought a '93 subaru on craig's list.
and i paid cash for the last 4 new cars that i bought.
at this point, with this economy, and the uncertainty about gas prices, a cheap, small, used car is a better deal, if you need one.
btw, don't you like the "save $10k and retire rich" answer?
some folks just haven't a clue.
i just had to put a new roof on my house.
that was $13k.
as for investing, there's lots of bad answers out there.
the market's likely going down more.
the value of the dollar is sinking.
oil stocks are way over bid, and when bush moves out of the white house, you're surely not going to want to own them.
you might also keep in mind, the stock market in general is fairly risky.
there are lots of very smart folks who do that for a living.
if you think you're smarter than they are, i'd suggest you run to the bank and open a CD. |
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pianoforte308
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I was going to say invest it or use it for college, and that i think would be the best way to use it |
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airdboy
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Put it all on black. |
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luv2cme
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buy a house when it the value goes up sale it.. |
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Jeff
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Use what you need to pay for college.
At LSU, tuition is $2300/semester and $1500/summer for Louisiana residents,
and the dorm costs about as much as tuition. For 5 years, that's about $60,000, or $30,000 if you live at home.
Buy yourself a decent car (a 4 year old Honda is a wonderful college car)
Park the rest into a brokerage account, buy 4-5 decent stock mutual funds (10 year track records of 10%+/year growth), and don't touch it for 40 years. $22,000 now (about the price of a new car) will turn into $1,000,000 by then. |
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myetenralsin
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stocks!!!!! |
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♪ Єrux Ðe Ła ſruχ ♪
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it all depends on u but i think u'd better start makin good fund projects or puttin it in a bank account till then and also don't forget charity! ;) |
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matt m
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first, I wouldn't pay for school with it. I'd go to school but try to pay your way through school. Your best bet is probably to talk to an investment firm about mutual funds. they'll invest the money for you based on if you want risky stocks, which would pay more money but have a greater chance for loss, down to not so risky stocks. you might get from 4% to 15% return. compounded annualy thats a nice supplement to your income. If i had it i'd invest in the stock market on my own but I don't have time to teach you how to succeed doing that |
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kiwee@y7mail.com
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Take out a *small* amount which you can spend without worrying. Call it 'silly money' if you like. This is to take care of the urge to splurge ALL of it. Then IF you aren't already in college and paying, bank the rest in a compound interest account. Or even if you ARE starting college, they may have monthly payments that can roll out of your account, rather than offering a lump sum (I wouldn't even mention the full sum to anyone other than immediate family). And you still earn interest on the amount in the account.
Also, if what is left over is several thousand, you could put it into a term deposit account for a year or more to get hihger interest.and still get part-time work to support your college endeavours. Think of the term deposit as emergency funds IF needed. |
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geezimanerd314
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If it were me... I would:
Put half in a bank account
Pay for college
Invest in some stocks
Donate the rest to World Vision
In my mind, that is smart. Others may not agree with the donation, and if that is you then throw that chunk in the bank as well. |
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Jayme B
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Hello,
I am a financial advisor and am very impressed with your forward thinking. There are a couple of things to consider given your situation. A previous poster mentioned to pay for all of your schooling up front. This would be the wrong thing to do. Even though your schooling would be paid off you would not be earning interest on the funds.
1- You should look into a 529 plan. What this plan enables you to do is invest your funds and use the amount invested as a state tax write-off. The yearly contribution limits for a 529 depends on your state's 529 plan. The 529 enable your funds to grow tax free and when distributed for educational purposes the principle and growth is not taxed. I would recommend maxing this fund out up to the estimated cost of school or what your states 529 plan max would be.
2- Open up and max out a Roth IRA. The max contributions for 2008 is $5,000. Each year you should max out your contributions to your Roth IRA account. Roth IRA's enables you to withdraw you funds once you are 59 1/2 without having to pay taxes on the growth of funds. Another perk of Roth IRA's being able to withdraw the total contribution amounts penalty free.
3- I also noticed that many people told you to invest in stocks. Unless you know indepth knowledge about a particular company you should stick with mutual funds. Two fund family I highly recomend is American Funds and Vanguard. It is imprtant that research to find the best fit for you and your risk tolerance.
4- As far as budgeting the funds....I would reccomend putting the remaining funds that you have once you have completed the above actions into a Money Market account. Set up an automatic transfer from the Money Market into your checking account. In essence this is a paycheck you received weekly or bi-monthly, depending on the frequency you set up. This will force you to live within your means and the funds will last the longest this way.
If you have any other questions feel free to post them on my forum. I have posted your question there so the folks on site can benefit from your question and the answer.
www.thel-coach.com |
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Tra B
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stocks, investment? when you have little make more, and when you have more...what else is there to do, MAKE MORE!!! LOL |
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Chappy
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i think you have the right idea in using it for a good college and i think investing wouldn't be a bad idea. just choose your investment wisely or you'll be broke. Use it to start of your life after college as well, such as buying car, house, etc. You'll find out the way to use it that fits you best. |
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jjc927@verizon.net
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Set aside what you believe you'll need for college (remember there are scholarships and financial aid also) and then split the rest of it between an investment or bank CD and use some of it for personal use. But remember to use the personal use part sensibly, not stupidly! |
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ApocalypsePlease
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set aside a portion of your money, have something like 2-3 grand to spend on stuff you want over a period of time. put the rest in the bank. or put it into ur retirement fund. you will be thankful when u do retire and u have that extra 100 grnad u put into the fund |
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Daniel K
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Invest it for growth. Stock mutual funds would be a good place to start. Or you could save it for a good down payment on a house which is also a good investment over time. |
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Another Person
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That is a lot of money for someone your age (I'm young too, so I can say this! :)) Your already on the right path by thinking about how to handle it.
I would suggest talking to a financial consultant. Obviously you want to put some up for the future (house down payment, car, etc.) It's always a good idea to use it for your education.
A financial consultant could give you investment strategies to help your money grow as well.
Just please don't waste it! |
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Suresh M
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First let me know your further plans. I would like to suggest to use it wisely with further plans. |
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KoderBear
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yeah i would just invest in it and make more... |
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lawbaby4eva
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Congratulations on your inheritance and even more so on your levelheadedness!!! Meet with a financial advisor. You can meet with one now to get ideas and again later once your inheritance comes in. They will advise you on how to use the money to your best advantage while paying for college. Good luck and stay smart!!! |
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SassySarah
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Give me the money, please.
You could invest the money in stocks and cds or use the money to pay for college. Talk to a banker about your options on how to make a profit. |
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ffa_sweet_heart
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Well i know that i sound stupid when i say this but i would pay off ALL of your college before you do anything that will give you an open door in the future when you dont have to pay of loans....Then if you had any left over i would put 3/4ths of it in to a savings account...believe it or not that intrest can pile up.....with the other 4th i would spend it as you please...i kow that that sounds stupid but you deserve it! |
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trav
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You never have enough money, that amount might sound like a lot and it can actually be, but it can be gone in a second. I would invest maybe 60% in a bank,,, probably they wont give you muc but its way better than nothing,,,, besides you didnt make that money so thats extra money ;-)
Also, If I was your age I would ask for a CC and pay every thing in full from my savings,, that way i would start building a goodd strong credit.
School,, or whatever you plan to do in life, u can start working on it
good luck |
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sharonsmineonly
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if you know where you are probably going to live after or even during school buy a house. it can always be sold if you need to but t place to live will give you time to choose the right job after college. |
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Crime turd t
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save it.
OR BUY THE ULTIMATE GAMER ROOM! |
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Ryan C
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mutual funds, compounding.. |
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chargahatta666
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here is what i would do: i would join the Marines for 4 years, they pay for 75-100% for college. collect military pay and benefits....then i would take that money and put it down on a nice house get a kick *** car and invest 10 grand in stocks trust me that **** will flip big time..then live the rest of my life happy!!! and rich!!! |
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chopsticks
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you can invest and make money grow or save it for the future in emergency case. you can also donated part of ur money to charity. or use it for college |
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theshadowknows
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I had a similar inheritance. I started using it for college. Then, when I was 21, I went to the casino with 50,000 and put it on the red line on roulette and won, so I doubled my money. I also didn't feel guilty any more that I was using someone else's money and I now earned it. I then bought a house and a car which gave me a pretty good start and enabled me to save a lot of money over the coming years. |
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Randomname83
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Invest it.
For school you should take out the subsidized stafford loans (ie the portion where the government pays interest). Why use your own money to cover what the government will pay subsidize? Outside of the subsidized stafford, you should probably use your money towards your education.
Any extra money you have should be invested wisely. At your age, you can invest heavily in stocks, but unless you are experienced with the markets (or have a trusted advisor), you should invest in broad based funds. Invest the majority (50-60%) in broad based mutual funds (or exchange traded funds) that own US stocks. Spend most of the rest (30% or so) on broad based international funds and spend the remaining on emerging markets (10% or so).
Why mutual/index/exchange traded funds instead of stocks or options? Less risk for people who are inexperienced. Diversification is extremely important and broad based funds are diversified. Just look for ones with low maintainance fees and avoid any funds with loads.
Why not bonds/cds/bank accounts/etc? These tend to make less money than stocks in the long run and at the age of 18 you want to invest LONG TERM.
Don't blow the money on stupid things. Buy a car if you need it (an economical one). 100k seems like a lot at 18, but trust me, you can spend a 100k real quick at that age. The fact that you are asking questions and thinking about college makes me think you know the importance of using your money wisely. At 18, the money can help you get a college degree and graduate DEBT FREE. Additionally, if you go to a state school you will likely have a fair deal of money left over. Even if you do go to a private school, you will likely have some money left over. Graduating debt free will put you well ahead of the curve.
Good luck. |
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