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What to do with my money

Well, after 4 years, I settled my car accident case today. I'm a bit disappointed b/c my attorney originally asked for $100,000 and I settled for $50,000. Of the $50,000 I only get to pocket at most $10,000. Considering all I went through it's not much. What should I do with the money I receive to make it go as far as possible? Is it smart to invest in some stocks or b/c of the way the economy is right now, should I forget about that? Should I just do an IRA? I need some advice. Thank you!

 
a_and_j_momma

Asked by a_and_j_momma at 11:13 PM on Dec. 11, 2008 in Money & Work

Level 4 (53 Credits)
This question is closed.
Answers (8)
  • The reason why an Roth is so good is because it is after tax dollars and whatever interest it earns id tax free when you pull it out. You can not touch it until you are of retirement age. You will have to decide what to buy in the Roth--stocks, bonds, Cd's--IRA's are just means to purchase such options and save for retirement. Mutual funds are just a group of stocks or bonds. You can buy mutuals within your IRA. Many mutuals can be bought directly from the company ie VanGuard. You will save a lot of fees by buying directly. Or you can buy them through discount brokers such as Scottrade. But the best is to put it in a cd as I mentioned until you have a chance to figure it out.
    Anonymous

    Answer by Anonymous at 11:26 PM on Dec. 11, 2008

  • I am no financial advisor, but I have heard that a ROTH IRA is a great way to go right now. Before I invest in the stock market I would definitely do some research-some people say that this is the best time to invest because "stocks are on sale" You have a pretty good chunk of change maybe you could diversify your portfolio with ira, cds and mutual funds.
    Anonymous

    Answer by Anonymous at 11:20 PM on Dec. 11, 2008

  • I would put it in the highest yield cd you can find until you have researched more of what you want to do. Put it in at least a 6 month CD. You can call credit unions and also go on-line to find rates. It is "safe" there and give you some time to figure out what you want to do:-)

    Anonymous

    Answer by Anonymous at 11:22 PM on Dec. 11, 2008

  • If you decide to do CDs for longer than a year--stagger them. Buy a 3 month, 6 month, 9 month, and 12 month--at perhaps $2000 for the first three and the rest in 12 or more months. Or if you know you won't touch it for at least a year, go longer because you usually get a better rate.
    Anonymous

    Answer by Anonymous at 11:29 PM on Dec. 11, 2008

  • If you owe on credit cards pay them off. Then start an emergency fund with the rest. Read Dave Massey's Total Money Makeover. Or you can start your own business. It has great tax deductions!
    nanaevelyn

    Answer by nanaevelyn at 12:55 PM on Dec. 12, 2008

  • no matter what you do, diversify!! dont put it all n the same place. if you owe debt, pay that off first, the interest youpay is more than you will gain by investing it.
    sunmoonstars

    Answer by sunmoonstars at 2:55 PM on Dec. 12, 2008

  • Check out ING Direct for great interest rates. They do have CDs but they also have a great rate for their everyday savings account. In some cases it has been better than the banks and credit unions.
    AussieMum2

    Answer by AussieMum2 at 2:06 AM on Dec. 13, 2008

  • I say start a mutual fund one that does not penalize you for taking it out early.The company I use is called american funds the company has been around for 103 years and is very strong company.
    Anonymous

    Answer by Anonymous at 3:18 PM on Dec. 13, 2008

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