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Would it STILL Be Safe to Invest in The Stock Market ?

I have a large inheritance coming to me from a close relative , after paying off my student loans , and getting my credit in shape for my first home , I would like to invest a chunk of my inheritance in the market . I don't like to leave all my Golden eggs into just one basket ya know . Lets say if one of my investments matures and I get a sustaibale profit I would split it into four equal parts . My dd college education ( my dd wants to be a Doctor of all things so I got to save some made money and fast for her ) my retirement , a pillow to bounce back on if I were to get layed off or if my job requires me to relocate , and of course take the last quarter and invest it again or donate to much needed charitities

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RedheadMom02

Asked by RedheadMom02 at 3:14 PM on Nov. 15, 2008 in Money & Work

Level 2 (10 Credits)
Answers (5)
  • I am not a financial advisor or anything but I don't think it is very stable right now, from one opening day to closing my uncle lost 70,000 and it hit them hard. And my dad's 401K dropped 2,000 on one day , a lot of people are losing a lot of money. You should probably ask the advise of a financial advisor.
    Anonymous

    Answer by Anonymous at 3:20 PM on Nov. 15, 2008

  • anyone with financial expertise ? Would I be better Off stuffing my money under my matress than leaving into an account ?
    RedheadMom02

    Answer by RedheadMom02 at 4:42 PM on Nov. 15, 2008

  • Historically, if you invest over a 10 year period, you will make a profit. That being said - right now the entire world is in a financial crunch. If I were in your position, I would pay off your bills, and pay cash for a home. I would put the rest into secure savings. Although there are fortunes to be made in a bad economy, you must understand the market and have psychic skills :) If you can find a financial advisor who has not lost his shirt recently- talk to them. My dad inherited a large sum in February & paid off everything instead of investing (against my advise) and is now very glad he did - so am I. Good Luck whatever you do! GG
    greenergypsy

    Answer by greenergypsy at 4:56 PM on Nov. 15, 2008

  • Not all investments are risky. If you want to invest in something more long-term, that is always a choice. I always suggest talking to a financial advisor from one of the larger firms, they can show you different types of portfolios. I think what you are thinking of doing is VERY smart, why pay off bills and/or hide your cash in the mattress when you can make it work for you? Even though there are low interest rates right now, some banks are offering high rate CD's if you put enough cash in (say $2000). My bank is constantly offering the "Saturday" CD, they will give you 4.5% 18 month if you open a CD on Saturdays -- with enough put in it of course ;-). There are some VERY GOOD offers out there, shop around!
    KnoxvilleDoula

    Answer by KnoxvilleDoula at 5:04 PM on Nov. 15, 2008

  • Yes, the stock market is a viable option but remember that you have to think of it in the long term. If you're looking to get in, make a quick buck, and then get out, you will be sorely disappointed.
    Anonymous

    Answer by Anonymous at 7:40 AM on Nov. 16, 2008

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