Yeah keep it in savings, 40k sounds like a good number for an emergency account. Start saving a portion of income you make from now on, and split that between a savings account for your future house and your retirement fund. Just don't do what most idiots do, invest everything, use money to get more leverage, and don't have a buffer, that's how you go bust. But with a buffer, once you get the money turning over, you'll have unlimited upside and little risk of busto, so you can sleep soundly at night. Plus you'll make only slightly less than Mr Risk-it-all-40%-chance-of-busto-for-an-extra-1%-optimisation.

Makes sense; thanks again.

Country you live in: Canada
Amount Investing: 100k
Risk Tolerance: Very High
Timeframe for investment: N/A
Debt: None

Any other information you might have that would help us:

I own a small real estate company and am looking for kind of a fun investment outside of the housing market with about 100k. Could go more possibly. I'll more then likely just end up just dumping it into more houses, but other options could be cool.

I'm pretty lazy and don't really want to do anything that requires a lot of my time.

Thanks for the help

* Country you live in : CANADA
* Amount to invest: 40k
* Risk Tolerance : medium
* Timeframe for investment : 5+ years
* Debt: none

I'd like something that requires very little work and little knowledge, so I'm thinking about buying funds such as ishares funds, what do you think about them? I guess I could buy like
25% of each:
http://ca.ishares.com/product_info/f....do?ticker=XGR
http://ca.ishares.com/product_info/f....do?ticker=XCR
http://ca.ishares.com/product_info/f....do?ticker=XAL
http://ca.ishares.com/product_info/f....do?ticker=XGR

What do you think?

I've looked at some funds from some banks but they often have very high fees (like 1.5%)

Also, I'd like to basically not have to look forward to making transactions with what I buy... I'd like to be able to keep it for years and not bother much... is this unrealistic?

Hi all, posted before but my situation has changed somewhat. I just opened a Fidelity account and have 8k to invest on their. Should I just dump it into a mutual fund? Here's more info about me
* Country you live in
* Income
* Risk Tolerance
* Timeframe for investment
* Debt
* Any other information you might have that would help us

U.S.
Income Fluctuates - I am 19yr old poker player/student (lets assume 2k/mo)
High Risk Tolerance, I want to invest aggressively for my future
Timeframe - I guess longterm, I mean I'm only 19 so I don't really need any of this 8k right now, just looking to build it up over time
Zero Debt
8k right now with plans to continually add about 1k per month

Hey guys. Help a friend:

PLEASE INCLUDE:

* Country you live in USA
* Income $38,000
* Risk Tolerance Low to medium
* Timeframe for investment 5+ years
* Debt none
* Any other information you might have that would help us

She is 26 years old. She has $20k to invest just sitting in ING. She has a 401k through work. She can add ~$200 per month to investment.

Is there some way I can sell this lifetime monthly settlement for a lump sum of cash? Would that be a good decision? If possible, what should I invest the lump sum into for a good return? Lastly, does anyone know what sort of lump sum could be expected? The payments are supposed to change yearly with inflation (+2% I believe)

Thank you guys!

I wouldn't unless someone could give me 200k+.

First thing: Past performance is not indicative of future performance. A 50% gain in the market is a little hard to consider going up much further, if at all.

But if you're bent on investing for that short term, this looks fine...though I would temper it with a higher bond allocation. Maybe drop the midcap completely and split the remainder between bonds and the FTSE.

1) Open a Roth IRA and deposit the maximum $5000 for 2009
2) Deposit the next $5000 for 2010

Recommended fund(s)? In the IRA I'd probably say just go with a Target Retirement fund.

For the remaining $10k I'd figure out whats needed for a 6 month emergency fund and then the rest we can figure out depending on how much it is.

* Country: USA
* Income: Low
* Risk Tolerance: Low to moderate
* Timeframe for investment: 1-3 years
* Debt: none
* Any other information you might have that would help us

Hi, I live in the US and just got a $7500 inheritance. Before that I only had about $4500 in assets and work a low paying job. The money is held in US Savings Bonds right now which I believe are getting 4% a year. I'm not sure what class of bond they are but I can get that info very soon. I've heard about massive inflation, US debt and the possibility of the crashing/devaluing dollar, etc so I'm worried about just leaving it there. 4% a year isn't too bad I guess, and I could always use it for something like paying for school at a later date or maybe if I move somewhere for a new job it could help me get set up (not that I have any immediate plans to do any of that). I also have no debt, my current job covers my living expenses fine and there's nothing I really want to spend it on. Would investing all or a portion of it be better than just leaving it as is?

* Country: USA
* Income: conservative estimate of 15k/yr (next 1.5 yrs). projected starting salary of 45k/yr after that
* Risk Tolerance: medium to high
* Timeframe for investment: none
* Debt: none
* Any other information you might have that would help us:

Hi, I am a Junior in college and I just cashed out about 9k from poker and its just sitting in my bank. I'm looking to put some in mutual funds. My professor showed us the exponential returns that putting 1k/ month into mutual funds can have over the lifespan so I am looking to do that. What is the best site for this? vanguard? All i know is I should choose funds with low operating fees and low turnover. Do i need to diversify my mutual funds of just put it all in 1?
Thanks

I just wanted to input that poker players can't contribute poker winnings to a ROTH IRA

In order to contribute it must come from other means (aka real job), I don't think any self employed individual can contribute to ROTH or Traditional, hence SEP-IRA was created for them

Hi rmoriar,

I think it depends if you anticipate more income over the next year and a half.

If you're not working and will be a full-time student, I'd put the money in a 12-month CD. When you graduate, you may have many new expenses: a car, a security deposit and first month's rent on an apartment, new clothes for work, furniture, etc.

If you're working or do not think that you'll use the money after you graduate, I'd take nuclear500's advice:

Vanguard offers a nice selection of mutual funds and ETFs. E*Trade has 1000+ no-fee, no-load funds. I'd choose four funds and do something like 30% large cap, 15% small cap, 30% international, and 25% fixed income.

This is not true. Anyone who makes less than the income limit (regardless of source) can contribute to a Roth IRA. Anyone can contribute to a Traditional IRA.

The SEP-IRA is intended to replace a workplace retirement plan (e.g.a 401(k)) for those who are self-employed.

I would leave the money in the savings bonds. 4% is a great guaranteed return in current economic conditions. More importantly, you should keep the money as an emergency fund in case you lose your job, have housing/transportation/medical problems, etc.

Do check the final maturity. For EE bonds, after 30 years they no longer earn interest. At that point, you'd want to cash them out and put them into a savings account or CD.

What are the benefits of putting the money in a IRA account rather then just a general savings account? Just the fact that it will be tax exempt if you withdraw after your 59.5? I dont think I will need the money after I graduate, but id prefer having access to my funds rather than not being able to access them until I retire. Additionally whats the best way to evaluate mutual funds and ETFs? Morningstar?
Also do you think i will earn more in a CD over the next year than putting it into the four funds like you proposed?
Thanks

Tax-free growth is a pretty big deal. It makes a large difference in the amount of money available to you when you retire. Your contributions to a Roth can be withdrawn tax and penalty-free at any time (it's your money, which you've already paid taxes on). It's better to leave the money in there, but not as catastrophic for withdrawals as pre-tax IRAs. Your earnings can be withdrawn before age 59.5 for the purchase of a first home or for approved educational expenses, assuming the account has been in existence for five years.

Check out the "What do I read?" thread in this forum. Many great resources are provided. I also recommend the Bogleheads forum and wiki (http://www.bogleheads.org/wiki/Main_Page).

Guessing whether a balanced group of index investments will return more than a CD (1.5% or so) is just that, a guess. I'd say that it is more likely than a good MF/ETF mix will have a better return, but it is also more likely that such an investment will have a lower or even a negative return.

I think that if you think that you might need the money within a year, you should leave it in a savings account or CD.

The risk of loss plus commissions and transaction fees greatly outweighs the chance of increased return of equities for such a short-term investment. Think about how you would feel next spring if your $9K is now worth only $7K. How would you feel if your $9K is worth $12K? Is the risk of loss justified? It depends on your risk tolerance and your anticipated need for funds.

PLEASE INCLUDE:

* Country you live in (Canada)
* Income (400 a month for life. Goverment Settlement)
* Risk Tolerance (High)
* Timeframe for investment (5-40 years)
* Debt (1500 Credit Card Debt)
* Any other information you might have that would help us

I'm a student. I live at home with my parents and have zero expenses. I just turned 21 years old. I play poker part time and earn about 400-1200 a month from it. My question here is what is the best investment to put my monthly cheque goverment of Quebec. Something that will grow over time. Is an RRSP a good idea? Thank you for the advice.


Quote:
Originally Posted by ArturiusX
You should be putting 100% into an interest bearing account. Do not invest in stocks. That money should be at call when necessary.


I would really appreciate it if anyone could help me out with my inquiry. Thanks a bunch once again.

Are you sure? I believe the earlier post was to clarify the idea that for a Roth IRA, it has to be qualifying earned income. For example, if one's only income is from a scholarship, one cannot open a Roth IRA. Gambling income (depending on how one files one's taxes) might not be considered earned income. Certain typed of investment income also does not qualify. Even if one is under the income limit, the maximum that can be contributed is limited by the amount of qualifying earned income.

This is easy to verify by searching for more information online.

The maximum that can be contributed to a Roth IRA is limited to the lesser of one's taxable compensation or the income-adjusted limit ($5K for MAGI < $105K). The OP reports a current annual income of $15K, so he would be eligible to contribute.

If this income is from a job, it is taxable compensation. If the OP files as a poker player (self-employed), self-employment income counts as taxable compensation (http://www.fairmark.com/rothira/iracomp.htm). Those who are self-employed can contribute to a Roth IRA.

I have not found a resource that states specifically whether gambling winnings for the non-self-employed player count as taxable compensation, but the IRS guidelines seem to indicate that they would as they are in the spirit of the guidelines (being fully taxed). The strongest evidence is that if you hit a big slot jackpot or win a tourney, you'll get a W-2G with your winnings in Box 1. Box 1 of the standard W-2 is the definition of taxable compensation for employees, so I believe a strong case could be made that gambling winnings are taxable compensation.

Regardless, you can open a Roth IRA at a brokerage and make a contribution without income verification. Just make sure to have everything in order in case you're audited.

Not sure if this is the right place for this. What are options for Canadians to invest in risk free investments in USD? With the dollar right now I'd rather keep money in USD but vehicles like ING Direct.ca only offers 0.75% on USD accounts. What other options are out there?

* Country you live in: USA -- California
* Income: $3000 a month
* Risk Tolerance: High
* Timeframe for investment: 5 years or less
* Debt: none
* Any other information you might have that would help us:

I generally put away like 500 or so a month in my checking account, and it just sits there. right now i have like 15k just sitting in my bank account. There must be a better option that is fairly liquidish that i could put like 10k into. should i just open an ameritrade account or something and put it in the DJIA index fund (or whatever its called)?

This question is a little different - paying down debt. You have 10K, which do you do?

1. Pay off a 10K car loan at 2.5% interest, eliminate a monthly payment.
2. Pay 10K off an existing home equity loan at ~7% interest (but tax deductible), still have the same monthly payment.

I guess this is from a credit rating/availability standpoint, not as much the monthly payment, which I have no problem handling.

I'd keep that 15k and put it into a cash management account like ING, save it as emergency money, don't take it out unless you lose your income. Then I'd start saving, once you make another 10k into that account I'd move it into a vanguard index fund. Getting an account with vanguard is easy and it has the lowest fees. If you need ideas on which index, read through this thread.