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Investing 75K, what should I do with it?

I sold a house through probate and am getting about 75K in a month. I'm 24 and I don't know anything about investing, but I know that I want to put that money somewhere and I don't need to be able to touch it for awhile (I'm taking out a chunk of money ahead of time for emergency use). Does anyone have any suggestions? Again, I am trying to read about investing and I really want to keep this simple and play it safe. Websites or advice for a beginner would be appreciated, thanks!

Public Comments

  1. Don't do anything stupid and do not DAY TRADE! Put the money in CD's at your local bank and find out who offers the best interest rate. Another great option would be to buy a house.
  2. At 24 I would suggest a growth or index mutual fund.
  3. http://www.Emigrantdirect.com They have the best interest rates, better even than most CDs, it's all done online, u can transfer money from account to account, it's easy to get started, and easy to monitor ur interest grow. Plus, it's FDIC insured up to 100K. It's a solid, safe investment, with no risk, and great interest rates.
  4. " I don't need to be able to touch it for awhile..." Depends what "awhile" means to you. Back in March 2000, the S&P 500 index reached a high point of I believe around 1525.00 or so. Then the tech bubble burst and the S&P 500 took 7 years to get back to that 2000 level. So if "awhile" is 7 years or less, I agree with the other responders who say a CD is best. Go to www.bankrate.com, and check 5 year CD for the best FDIC insured rates in the country. If "awhile" is over 7 years, the best after tax and after inflation returns come from common stocks. A simple and somewhat safe way to invest in stocks is to buy a total stock market index mutual fund. I like Vanguard's fund as it has a very low expense ratio. Check www.vanguard.com for more information.
  5. You got a response about the tech bubble and the fact that it took 7 years for the S&P to recover. That is true. But not all equity investments suffered from that bubble. During that time there were more than just a few that more than doubled their money. Equity investments and real estate are the only two ways available to Sue Common Investor to stay ahead of inflation. There are quite a few very good mutual funds and index funds available that should do that. They may not, but they should. As the tech bubble responder mentioned, what is your definition of awhile? If awhile is 5 years or more than equity investments should do reasonably well if they are well diversified. An easy way to accomplish that diversity is with a mutual fund such as Vanguard Global Equity fund. It is well balanced equity fund with a 10 yr annual return of 11.2%. But not all of your money should be placed into any one such investment. It is alway an excellent policy to have a cash reserve on hand in the bank. In your case somewhere between 15k and 25k. CDs and t-bill currently pay about 5% more or less. It is also wise not to place all of your equity investments into one muutal fund, but if I had to that would be one worth considering.
  6. Invest in Jamba Juice. Ticker JMBA listed on the NASDAQ. this company has huge growth potential. Check it out!!! right now they have 645 stores and they plan to have 5000!!!
  7. A good basic education on investing will help. And once you learn the basics, you can carry this knowledge with you throughout life. You will want to start off by learning the basics of stocks, bonds, and mutual funds. For that, there are 3 good sources of info: 1) Mutual Funds for Dummies, by Eric Tyson. I highly recommend this book to young people. He infuses common sense and easy explanations into the complicated world of investing. 2) http://www.invest-for-retirement.com has a free downloadable book, by me. Took me 16 months to write it, and I don't charge for the book. I believe this is info that should be made availble to anyone who wants to learn. Although the book is focused on retirement, you will pick up general investment knowledge. 3) http://www.investopedia.com has some excellent tutorials And when you are ready to invest, look first to http://www.vanguard.com for low-cost mutual funds
  8. There are literally thousands of options at your disposal and no doubt that for a person who is new to investing, the process can be daunting. Evaluate your options, and sort out what investments suit your risk profile. That being said this is perfect opportunity to make your investments such that you get good returns and stay ahead of the crowd. The safer you play, the lower the returns. You dont need to have a gamblers mentality to make good returns. However you can definitely try and take smaller risks now when you are young. Hope that helps. Please email me if I can help with any further information. Regards
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