First off I am sorry for your loss. I hope your wife is doing Ok. I lost my dad almost 8 years ago. It can be difficult. Secondly, the type of advisor you are looking for is called a fiduciary. I am personally more of a passive investor, ala, boglehead type. So I use an IRA that is essentially low fees, and basically 15% cash and the rest split in thirds of domestic index fund, international large cap index fund and domestic bond funds. I can't time the market so I just add to it monthly. I basically use the same allocation for work 401k as well. I am no investing guru, however, when I sold a business 7 years ago everyone and their brother wanted a piece. I was leary, but a fiduciary type advisor as well as a CPA can help immensely. I was/are in the position where the wife and I still work, so we have to be mindful of phaseouts for stuff such as Roth eligibility and even IRA eligibility. You can also lose out on stuff such as child tax credit etc. depending on whether your income is "above the line" income. Basically, without wasting money, you want your adjusted gross income to be as low as possible. Not to mention situations of taxable investments where the gains are either grown deferred, or taxed at long term and short term capital gains rates. From reading your post, I would pay off consumer debt except mortgage, max the roth IRA which is only like $5500. Then If you really have "freed" up cash from paying off the debt, you should max out your work 401k to the $17,500 limit. Only once these are exhausted do you even need to discuss stuff with an advisor.
I went to home depot, strolled through the garden center but they were fresh out of money producing trees. Ah, well. Went home with a tape measure.
As mentioned I did use my money to pay off a lien on my home which still shows up after 25 yr on y credit report sometimes. My point with not paying off the credit card dept is to teach you NEVER to run up the dept again. But to each his own. Also, you can have dept but if you have money in the bank or in stocks you have power. Better rates on loans etc.
I never walk post a penny without stopping to pick it up. That's how much value I put into financial security. That's my mind set.
I have made a fortune in mutual funds. More than I ever have on my individual stock picks. Mutual funds can be held in qualified money accounts (IRA's, etc.) and have no tax consequences each year. You will only pay ordinary income tax at the time of withdrawal. After hitting certain investment levels in most funds, all fees are eliminated. There are one time up front loads on most funds and you can shop for the best fees and/or rates. Some of the brightest financial experts in the world are managing this money on a daily basis, leaving you to focus on work and fun. If they do not make you money, they do not have a job. I like that. There is no additional cost to you for them moving your money around from one stock to another. They even have the option of moving into cash holdings if the market dictates such a move. Most people don't have the time or insight to make this kind of commitment to their life savings. If you are not comfortable with learning all about markets and financial vehicles, and you don't want to be reading reports and financials of every company you are invested in and world market trends, you NEED a good financial advisor. Some of them have very reasonable fees and are worth several times what they charge to your bottom line. Keep in mind that Enron, WorldCom, Lehman Brothers, and Conseco were all huge companies that seemed like a safe bet on an individual basis. And, if you would have lost everything by the time you knew what was happening. By the way, I am NOT a financial advisor, and I do not sell mutual funds. But, I have done VERY well with both. Do some research and I think you will agree.
You must think about one thing with putting your money in 401s and Roth IRA's is you are not free to do anything with your money until you are 59 1/2, not a wise choice in my mind. Go with a grove of the money trees!
Great point and one that I meant to mention. There are substantial tax advantages to them, but don't put EVERYTHING in qualified plans because you will pay a 10% penalty and tax to make early withdrawals.
Thanks for the responses everyone. While real estate sounds appealing for some, it's not really my cup of tea. We're not talking hundreds of thousand here, I'm looking more toward a safe investment with minimal interaction on my part. I've talked with an Arab prince who was fortunate enough to inherit millions of dollars and he has promised to match me dollar for dollar in a few pyramid schemes which he thinks will triple my investments within the first 3 years. I'm setting up a joint account with Prince Ali Baba this afternoon, once I deposit the money he will be able to withdraw it and invest it wisely. The kindness of oeople never ceases to amaze me.
Most Nigerian investments worth looking into require a fax machine, apparently smart phones have not caught on over there, but with the promised returns the investment in a good quality Fax/copy machine we be soon recouped. happy trails!
Here's what my thinking on this is. I initially said I would be opening up a Roth IRA. For the next 8 years I will be receiving a payment. I'm almost 40 and have no children and unmarried. The married part could change and that could change the child arrangement as well, but for right now I don't really have to worry about leaving something behind. If there is anything it would probably go to my 6 nieces and nephews. I don't mind leaving broke, I just don't want to live broke. Hope that makes since without sounding selfish. I can max out the IRA for the next 8 years and still have a surplus. I was thinking I can take the first 5 years and put the surplus into long term CD's and the final 3 years doing shorter term. In my mind by doing this I should be able to ladder the CD's to where after the 8 years I would continue to be able to max it out for an additional 10 years easily while reinvesting the surplus back into a mixture of long term and short term CD's. I'd be nearly 58 by the end of that final 10 years and should still have multiple CD's maturing. And hopefully will be building my 401k the entire time, assuming that if I move or change jobs I can roll it back into another 401K plan so I can continue contributing. Anyone think that is not a good idea?
\ CD's are a safe avenue to go but you don't get a lot of return on them. I would forget the cd's and invest it in a precious metal you will get a better return and there is no mature date if you run into trouble you cash in a bar or 2. I like the IRA idea but get a prenump when and if you get married that will save you half of your money right there.
My advise is to not take advise from posts on a bowhunting forum, go talk to a certified financial planner. Coming to you live from The Peoples Republic of New York
Cd's are horrible. They don't even keep up with inflation. I'm a mutual fund guy myself. But I agree with trial, go see an advisor. If he tries to get you in individual stocks, run Sent from my SAMSUNG-SGH-I317 using Tapatalk
If I were young, debt free and single, I would buy a duplex. Sent from my SAMSUNG-SGH-I317 using Tapatalk
While I thoroughly enjoy reading everyone's posts on anything and everything on here, I would definitely second this. I have a great investment guy with minimal fees, and he does what I don't have the time or training to do.
I'm definitely not seeking how to's, but the thoughts and ideas are all appreciated. I've read a few Dave Ramsey's books and think he has a search for recommended advisors feature on the web site or something. I didn't know if some of the big name companies were the ones to talk to, my 401K is through Trowe Price. My credit union also offers IRA's. I'm a complete newb when it comes to investing vs. contributing. I'll continue to research, it seems to be a bit trickier trying to invest with an annuity payment. I just want to make sure I do this right, I was already screwed out of a trust fund as a kid and want to make sure I'm not taken advantage of again, so there's a sense of paranoia as well.
Guess I'm old school. I buy good companies and let them ride. Max out my Roth IRA each year and own my own home and a couple others. Point being get into it all but never put all your eggs in one basket. You would of considered yourself blessed to have Madolf (sic) investing for you as well but look how that turned out. I've just always been better at picking stocks than any stock broker I've hired. Again I wouldn't use the money to pay down credit cards you've ran up. Interest rates are low considering what they were in the past. Cash is king.
Another good book. Millionaire next door. The Millionaire Next Door - To become wealthy and secure, most of us don't need to increase our income; instead, we need to learn how to manage the money we have better.
