MikeB Posted February 2, 2011 Posted February 2, 2011 I had a similar, but smaller, inheritance when I was in my 30s and every penny or damn near all of it is long gone, mostly due to bad decisions and the stock market events of 1986-87. It's completely subjective depending on each individual's situation/goals and tolerance for risk.Provided the money is not needed for day-to-day expense:Pay off all debt - credit card or whatever, provided the 150k will cover it. The debt is probably not going away and it's next to impossible to hide that much money if you have to declare bankruptcy.Make the maximum contribution to a mixed-asset target retirement Roth IRA for 2010 and 11. I believe for under 50 it's $5,000 and you have until April 15 to make the 2010 contribution. Vanguard, Fidelity, etc. You won't get rich but you won't lose it either.Put the rest in similar insured mutual funds (depending on tolerance to risk) and continue to put the maximum allowed into the Roth annually.Then, forget about it.I wouldn't buy a condo in the Philippines or a house or lot in my partner's name.That's what I would do. Link to comment Share on other sites More sharing options...
Art2ro Posted February 2, 2011 Posted February 2, 2011 Yeah, give me that $150,000! I surely know what to do with it! It surely isn't going into any kind of investments! Link to comment Share on other sites More sharing options...
Inspector Posted February 3, 2011 Author Posted February 3, 2011 Advice was great.Personally, if it were me, after the advice and reading...I would pay off the debt, and buy a rental in the American southwest. Houses are dirt cheap, and people are always in need of a place to rent, especially those who foreclosed due to being underwater. In 5-? years, that investment should grow, while making some cash flow in the meantime. Remember, baby boomers are retiring at 1 every 10 seconds now...for the next two decades, and while that might say good bye to social security as we know it, these people are going to want to get to a cheaper place to live, with lower taxes and warmer weather. With any rental income until you decide to sell again, you could always invest that into the Roth.....However, I told him that he should live like Charlie Sheen for a weekend...sure all the money will be gone, but what a weekend it will be. “What a shock that a guy who makes $2 million a week behaves exactly like I would with $2 million a week. As far as I’m concerned, if you make $2 million a week and you don’t have a hooker in your hotel room, you’re creepy and I don’t trust you. And I don’t do drugs at all, so for me it would just be more prostitutes. That’s how they would find me. I would be dead on the floor, flattened by a pile of prostitutes. I’d look like a cat in a hoarders’ house.” - Comedian Jim Norton on Charlie Sheen :photo-109: Link to comment Share on other sites More sharing options...
Fast&Furious Posted May 2, 2011 Posted May 2, 2011 I have 12 years experience in international stock markets and I have in the past averaged returns of 50% / year on my portfolio (excluded dividends).Then it came my wife. She cleaned the lot.I have re-started this year with just $10,000 and have already got to over +30%......and believe it or not, I'm a low risk trader.Depending on what your friend wants to do...but there are pretty solid companied with dividends.....an when the market turns, short is even easier. Link to comment Share on other sites More sharing options...
Dr. Cockroach Posted July 27, 2011 Posted July 27, 2011 I have 12 years experience in international stock markets and I have in the past averaged returns of 50% / year on my portfolio (excluded dividends).Then it came my wife. She cleaned the lot.I have re-started this year with just $10,000 and have already got to over +30%......and believe it or not, I'm a low risk trader.Depending on what your friend wants to do...but there are pretty solid companied with dividends.....an when the market turns, short is even easier.Pay the debt, FIRST! Link to comment Share on other sites More sharing options...
piglett Posted July 28, 2011 Posted July 28, 2011 I have 12 years experience in international stock markets and I have in the past averaged returns of 50% / year on my portfolio (excluded dividends).Then it came my wife. She cleaned the lot.I have re-started this year with just $10,000 and have already got to over +30%......and believe it or not, I'm a low risk trader.Depending on what your friend wants to do...but there are pretty solid companied with dividends.....an when the market turns, short is even easier.Pay the debt, FIRST!Exactly , dig out & then see how much you have left Link to comment Share on other sites More sharing options...
Art2ro Posted July 28, 2011 Posted July 28, 2011 We have no debts, we own our own home, but with $150,000 I would build another home the way I want, rent out my 1st house and buy a new car! Simple as that and we're still happy in the Philippines as before! Link to comment Share on other sites More sharing options...
piglett Posted July 28, 2011 Posted July 28, 2011 (edited) We have no debts, we own our own home, but with $150,000 I would build another home the way I want, rent out my 1st house and buy a new car! Simple as that and we're still happy in the Philippines as before! the guy in question has a pile of credit cards & i would wipe those out asapi understand that some members don't though myself included but i thought the op was asking the question what should this guy do . but maybe it was was would "you" do ?piglettEDIT ok i went back & now see that the op wants to know what the members would do , well that is different.I myself would pay off the small amount owed on my house to start with,that would lower my monthly outlay so i could save more money each month.the econemy is sh*t rite now, so laying out a pile of cash on a maybe mite not be the best thing to do. i see more & more strip malls that are 1/2 empty.....not a good sign. so what is a good way to grow your money without loosing a pile of it ?that is a great question & if i knew that i could charge for that infomation :541: Edited July 28, 2011 by piglett Link to comment Share on other sites More sharing options...
talim Posted July 28, 2011 Posted July 28, 2011 In any city i travel here the Phils, the main business seems to be PAWNSHOP. They are all over !It's BIG returns, they ask like 5% per month, this is a 60% per year, invest some of the money in a Pawnshop chain ! And they cover their ass with somthing they take in warranty, such as gold, a phone, a car...Then there are the bigger Loan sharks, called MUMBAI, the indians we see on motorbikes here and there, they ask up to 20% interest per month...It is not really helping out the Philippinos but your money grows well placed in one of this 2 (loan shark) ventures. Link to comment Share on other sites More sharing options...
Inspector Posted August 3, 2011 Author Posted August 3, 2011 We have no debts, we own our own home, but with $150,000 I would build another home the way I want, rent out my 1st house and buy a new car! Simple as that and we're still happy in the Philippines as before! the guy in question has a pile of credit cards & i would wipe those out asapi understand that some members don't though myself included but i thought the op was asking the question what should this guy do . but maybe it was was would "you" do ? piglett EDIT ok i went back & now see that the op wants to know what the members would do , well that is different. I myself would pay off the small amount owed on my house to start with,that would lower my monthly outlay so i could save more money each month. the econemy is sh*t rite now, so laying out a pile of cash on a maybe mite not be the best thing to do. i see more & more strip malls that are 1/2 empty.....not a good sign. so what is a good way to grow your money without loosing a pile of it ?that is a great question & if i knew that i could charge for that infomation Well, as Tom_Shor can attest, in the Phoenix Arizona area, renting houses is the big thing, and will be for the next 3-8 years. Due to the vast amount of foreclosures, most simply strategic foreclosures these days due to being underwater, and Phoenix being a non recourse state...you have people working and wanting to keep their kids in the same schools, so MANY of them walk away, and then rent the house three doors down for half the mortgage they were paying. Now, they will not be able to buy a house with the knock on their credit for 4-7 years, depending upon short vs foreclosure, and many will not WANT to buy another house after being shafted by big bank, so renting is a big business now in the Phoenix zone. There is also a wait on many rents, and once you can lock up a good tenant .... cash flow is great with a nice depreciation tax break. Just find a good property manager, and a nice warranty on your air con units, and appliances...and you are set. If anybody goes this route, just make sure it is in a nice family area (good schools), with low amounts of rents ...I had a real estate agent trying to sell me a house near the world famous UTI (universal technical institute)...which is basically a motorcycle mechanic college. While I am certain I would always be renting, I was not too thrilled knowing the renters would be future biker types.... testosterone, beer and blood was all I kept thinking in the house. So, in certain areas, such as Phoenix, renting seems to be a good business for the foreseeable future. Link to comment Share on other sites More sharing options...
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