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How do you invest $100,000 when you haven't got a clue?

I know nothing about investing. I am just really clueless in that area. It looks like we will be coming into some money pretty soon and will have about $100,000 to invest. What do you think would give us the best return for our money? We have been living pay check to pay check forever so suddenly having such a huge windfall is astounding to us and we want to be smart and not waste it.

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Anonymous

Asked by Anonymous at 1:47 PM on Apr. 8, 2011 in Money & Work

Answers (17)
  • Perhaps you should consult a financial advisor who can help you get the most bang for your buck, so to speak. Where you put the money will depend on many variables in your lifestyle, household needs, and future plans.
    vicesix

    Answer by vicesix at 1:50 PM on Apr. 8, 2011

  • good for you! Please look into a financial advisor I love mine and she is a TON of help! if you are in MI I can share theone we use!
    rebeccadac

    Answer by rebeccadac at 1:51 PM on Apr. 8, 2011

  • You put it directly into a saving account. You will probably have to pay a Capital Gains Tax on the money. Then you take your time & talk to a Financial Advisor. Right now is NOT a good time to invest in the Market.
    ILovemyPaulie

    Answer by ILovemyPaulie at 1:51 PM on Apr. 8, 2011

  • Find a financial adviser and invest in mutual funds or something of the like. Do you have an insurance agent? Often times they can also serve as a financial adviser and can at least explain basics of investing if you would prefer not to invest in what they have to offer.
    EBee12

    Answer by EBee12 at 1:51 PM on Apr. 8, 2011

  • First, pay off all debt. Car, house, loans, credit cards.... Then put some into savings, some into trust funds for your kids for their college funds, and then go talk to your local investment agency. They can help explain which are smart investments right now. Depending on where youmlive, I'd look in to some land. That's always a smart investment. My dhs dad has always said, land is the best type of investment, they don't make it anymore!
    BabyBugsmama

    Answer by BabyBugsmama at 1:51 PM on Apr. 8, 2011

  • Consult an advisor - many first visits are free. I didn't get that much....but I didn't want it all PUT away. After years of pay check to pay check I didn't want to just blow it but I wanted to know we have access if needed - so we did part in a money market checking account - which actually draws more interest than our savings and we can get to it. HOWEVER I set it up at a totally different bank (out of the way to actually GO to), made sure NOT to get CHECKS only a debit card - which is in a baggy in freezer. REALLY have to THINK before using :0 Good luck
    brypmom

    Answer by brypmom at 1:56 PM on Apr. 8, 2011

  • Financial Advisor from the start.
    meooma

    Answer by meooma at 1:57 PM on Apr. 8, 2011

  • Do you have any high interest debt? Pay that first. Put a small amount in an emergency savings account in a different bank . . . interest bearing . . just in case or emergencies. But DON'T touch it unless it is a true emergency. Invest the rest in mutual funds, or, buy some real estate, which is at he bottom, and will, eventually, increase in value.
    ImaginationMama

    Answer by ImaginationMama at 1:59 PM on Apr. 8, 2011

  • I just wrote a huge answer and the internet closed me down!! But don't let anyone sell you an annuity!! And lisen to WTKK online radio show sunday mornings from 9-12 EST. Susan Kaplan is on it and she is in the top 100 best financial advisors in the country
    elizabr

    Answer by elizabr at 1:59 PM on Apr. 8, 2011

  • I'm doing this in short answers so I don't get closed out. Also, pay off all credit card debt (if any) and then have a 8 month emergency fund in a bank money market account that you will not touch and you can get some interest on. Private message me if you would like a list of great mutual funds to invest in. GL
    elizabr

    Answer by elizabr at 2:02 PM on Apr. 8, 2011

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