• Forums
  • Best Betting Sites
  • Sportsbook Promos
  • Best Sports Betting Apps
  • NFL Betting Forum
  • NBA Betting Forum
  • MLB Betting Forum
  • NHL Betting Forum
  • NCAAF Betting Forum
  • NCAAB Betting Forum
  • Soccer Betting Forum
  • Tennis Betting Forum
  • General Discussion
  • Help Forum
  • Guidelines
  • FAQ
  • Forum Updates
    Covers Logo
    Covers App
    Faster picks. Smarter bets.
    All in the NEW Covers App
    Download on the App Store Download on the Google Play Store
    • Sports
      • NFL
        • Back
        • NFL
        • NFL Home
        • Scores & Matchups
        • Prop Projections
        • NFL Picks
        • NFL Prediction Prices
        • Weather
        • Injuries
      • NCAAF
        • Back
        • NCAAF
        • NCAAF Home
        • Scores & Matchups
        • Prop Projections
        • NCAAF Picks
        • Weather
        • Injuries
      • NBA
        • Back
        • NBA
        • NBA Home
        • Scores & Matchups
        • Prop Projections
        • NBA Picks
        • Injuries
      • NCAAB
        • Back
        • NCAAB
        • NCAAB Home
        • Scores & Matchups
        • NCAAB Picks
        • Injuries
      • MLB
        • Back
        • MLB
        • MLB Home
        • Scores & Matchups
        • Prop Projections
        • MLB Picks
        • Weather
        • Injuries
      • NHL
        • Back
        • NHL
        • NHL Home
        • Scores & Matchups
        • Prop Projections
        • NHL Picks
        • Injuries
      • Soccer
      • UFC
        • Back
        • UFC
        • Odds
        • Picks
        • News & Analysis
      • WNBA
        • Back
        • WNBA
        • WNBA Home
        • Scores & Matchups
        • WNBA Picks
        • Injuries
      • CFL
        • Back
        • CFL
        • CFL Home
        • Scores & Matchups
        • CFL Picks
      • Golf
        • Back
        • Golf
        • Golf Home
        • Golf Odds
        • Masters Odds
        • PGA Championship Odds
        • US Open Odds
        • British Open Odds
        • Ryder Cup Odds
        • Golf Picks
    • Odds
      • All Odds
      • NFL
      • NCAAF
      • NBA
      • NCAAB
      • MLB
      • NHL
      • Golf
      • Soccer Odds
        • Back
        • Soccer Odds
        • MLS Odds
        • Champions League Odds
        • Premier League Odds
      • UFC
      • WNBA
      • CFL
      • Election Odds
      • Futures
        • Back
        • Futures
        • NFL
        • NBA
        • MLB
        • NHL
        • NCAAB
        • NCAAF
      • Sports Odds History
      • Politics
        • Back
        • Politics
        • Politics Home
        • Presidential Election Odds
        • Midterm Election Odds
        • House Midterm Odds
        • Senate Midterm Odds
        • Texas Midterm Odds
        • Michigan Midterm Odds
    • Picks
      • All Picks
      • NFL
      • NBA
      • NHL
      • MLB
      • NCAAF
      • NCAAB
      • UFC
      • Golf
      • WNBA
      • CFL
      • User Picks
      • Team User Picks
      • Consensus Picks
        • Back
        • Consensus Picks
        • All Consensus Picks
        • NFL
        • NBA
        • NHL
        • MLB
        • NCAAF
        • NCAAB
        • CFL
        • WNBA
        • Consensus FAQ
        • Public Money
    • Prop Projections
      • NFL
      • NBA
      • MLB
      • NHL
    • Betting
      • US Betting Sites
      • Canada Betting Sites
      • Sportsbook Reviews
      • States
        • Back
        • States
        • US Legal Tracker
        • Revenue Tracker
        • Arizona
        • Arkansas
        • California
        • Colorado
        • Connecticut
        • DC
        • Florida
        • Georgia
        • Illinois
        • Indiana
        • Iowa
        • Kansas
        • Kentucky
        • Louisiana
        • Maine
        • Maryland
        • Massachusetts
        • Michigan
        • Mississippi
        • Missouri
        • Nevada
        • New Hampshire
        • New Jersey
        • New York
        • North Carolina
        • Ohio
        • Oregon
        • Pennsylvania
        • Tennessee
        • Texas
        • Vermont
        • Virginia
        • West Virginia
        • Wyoming
      • Provinces
        • Back
        • Provinces
        • Alberta
        • British Columbia
        • Manitoba
        • New Brunswick
        • Newfoundland and Labrador
        • Northwest Territories
        • Nova Scotia
        • Nunavut
        • Ontario
        • Prince Edward Island
        • Quebec (English)
        • Quebec (francais)
        • Saskatchewan
        • Yukon
      • By Sport
        • Back
        • By Sport
        • Baseball
        • Basketball
        • Boxing
        • College Football
        • F1
        • Football
        • Super Bowl
        • Golf
        • Hockey
        • Horse Racing
        • March Madness
        • Soccer
        • UFC
        • World Cup
      • Betting Apps
        • Back
        • Betting Apps
        • Best Sports Betting Apps USA
        • Ontario Sports Betting Apps
      • Rest of World
        • Back
        • Rest of World
        • UK Betting Offers
          • Back
          • UK Betting Offers
          • UK Betting Sites
          • bet365 Bonus Code UK
          • 888Sport Promo Code UK
          • William Hill Sign up Offer
          • Betway Sign up Offer
          • BetVictor Bonus Code UK
      • Betting Guides
        • Back
        • Betting Guides
        • All Guides
        • Glossary
        • Betting Calculators
          • Back
          • Betting Calculators
          • Odds Converter
          • Parlay Calculator
        • Futures Betting Guide
        • Moneyline Betting Guide
        • Over/Under Betting Guide
        • Parlay Betting Guide
        • Point Spread Betting Guide
        • Prop Betting Guide
        • Sports Betting Guides
          • Back
          • Sports Betting Guides
          • How To Bet On Sports Guide
          • NFL Betting Guide
          • NHL Betting Guide
          • NBA Betting Guide
          • MLB Betting Guide
          • NCAAB Betting Guide
          • NCAAF Betting Guide
          • Golf Betting Guide
          • Tennis Betting Guide
        • Teaser Betting Guide
      • Betting News
        • Back
        • Betting News
        • All News
        • Industry News
        • Podcasts
        • Covers Videos
        • Covers Writers
        • Offers & Boosts
    • Promos
      • Sportsbook Promos
      • Canada Sportsbook Promos
      • Bonuses By Sportsbook
        • Back
        • Bonuses By Sportsbook
        • bet365 Bonus Code
        • BET99 Promo Code
        • BetMGM Bonus Code
        • BetRivers Bonus Code
        • Caesars Sportsbook Promo
        • DraftKings Promo Code
        • Fanatics Sportsbook Promo
        • FanDuel Promo Code
        • Hard Rock Bet Promo Code
        • Sports Interaction Promo
        • Stake Promo Code
        • theScore Bet Promo Code
        • TonyBet Promo Code
      • Bonuses By Region
        • Back
        • Bonuses By Region
        • Arkansas Promos
        • Arizona Promos
        • Colorado Promos
        • Connecticut Promos
        • DC Promos
        • Illinois Promos
        • Indiana Promos
        • Iowa Promos
        • Kansas Promos
        • Kentucky Promos
        • Louisiana Promos
        • Maine Promos
        • Maryland Promos
        • Massachusetts Promos
        • Michigan Promos
        • Missouri Promos
        • New Jersey Promos
        • New York Promos
        • North Carolina Promos
        • Ohio Promos
        • Pennsylvania Promos
        • Tennessee Promos
        • Vermont Promos
        • Virginia Promos
        • West Virginia Promos
        • Wyoming Promos
    • Forum & Contests
      • All Forums
      • NFL Betting Forum
      • MLB Betting Forum
      • NCAAB Betting Forum
      • NCAAF Betting Forum
      • NBA Betting Forum
      • NHL Betting Forum
      • Soccer Betting Forum
      • Contests
        • Back
        • Contests
        • Contests Home
        • Streak Survivor
        • King of Covers
        • My Contests
    • Casino
      • Sweepstakes Casino
        • Back
        • Sweepstakes Casino
        • Sweepstakes Casino
        • Sweepstakes No-Deposit Bonuses
        • Sweepstakes Promos
          • Back
          • Sweepstakes Promos
          • Crown Coins Promo Code
          • FreeSpin Casino Promo Code
          • Jackpota Promo Code
          • LoneStar Promo Code
          • McLuck Promo Code
          • NoLimitCoins Promo Code
          • Rainbet.us Promo Code
          • RealPrize Promo Code
          • Splash Coins Promo Code
          • Stake.us Promo Code
      • US Casinos
        • Back
        • US Casinos
        • US Online Casinos
        • US Online Casino Bonuses
        • Casino Promos
          • Back
          • Casino Promos
          • bet365 Casino Promo Code
          • BetMGM Casino Promo Code
          • BetRivers Casino Promo
          • Borgata Casino Bonus Code
          • Caesars Casino Bonus Code
          • DraftKings Casino Promo
          • Fanatics Casino Promo
          • FanDuel Casino Promo Code
          • Golden Nugget Casino Promo
          • Hard Rock Bet Casino Promo
          • Hollywood Casino Promo Code
      • Canada Casinos
        • Back
        • Canada Casinos
        • Canada Online Casinos
        • Provinces
          • Back
          • Provinces
          • Alberta Online Casino
          • BC Online Casino
          • Ontario Online Casinos
        • Casino Promos
          • Back
          • Casino Promos
          • 7Bit Promo Code
          • BC.GAME Bonus Code
          • BitStarz Promo Code
          • Jack Casino Promo Code
          • JackpotCity Promo Code
          • Rainbet Promo Code
          • Roobet Promo Code
          • Shuffle Promo Code
          • Spin Casino Promo Code
          • TonyBet Casino Bonus Code
    • Prediction Markets
      • Prediction Markets
      • Prediction Market Apps
      • Prediction Market Promos
      • Kalshi Promo Code
      • Kalshi Referral Code
      • Polymarket Promo Code
      • Polymarket Referral Code
      • FanDuel Predicts Promo Code
      • Gemini Predictions Promo Code
      • Novig Promo Code
      • Underdog Promo Code
      • ProphetX Promo Code
      • OG Promo Code
      • Plus500 Promo Code
      • Betr Promo Code
      • DraftKings Predictions Promo Code
      • Fanatics Markets Promo Code
    • NFL Week 10
      NFL Week 10
      • NFL Odds
      • NFL Picks
      • Commanders-Giants Picks
      • Week 10 Survivor Picks
      • NFL Prediction Markets
      • NFL Betting Sites
    Covers Account
    Log in Create account
    Join free Log in
    All Forums | Investments

    Advice on what this student should do with his inheritence.

    12 Next Last»
    modernavalon
    Gunners
    TheBest
    depeche2
    july4433
    ...
    Participants:
    Search
    Views: 1683
    Posts: 45
    12 Next Last»
     
    modernavalon
    modernavalon
    Banned
    Participation Meter
    Joined: Apr, 2007
    Posts: 287
    Posted: Sep. 13, 2007 - 2:15 PM ET #1

    I have $10,000  and need help  on what to do with it. I am willing to do anything that is profitable obviously I would like low risk. My financial situation besides that is very limited but I am able to pay all my bills with my part time job. So any advice anyone can give me will be much appreciated as I will keep this thread alive to let you know what I chose to do and how im doing. Thanks guys !
    Reply
    To remove first post, remove entire topic.
    I have $10,000  and need help  on what to do with it. I am willing to do anything that is profitable obviously I would like low risk. My financial situation besides that is very limited but I am able to pay all my bills with my part time job. So any advice anyone can give me will be much appreciated as I will keep this thread alive to let you know what I chose to do and how im doing. Thanks guys !
     
    Gunners
    Gunners
    Veteran
    Participation Meter
    Joined: Feb, 2006
    Posts: 3392
    Posted: Sep. 13, 2007 - 2:28 PM ET #2

    If you want low risk, I would just put it into a Money Market at 5.05%.
    Reply
    If you want low risk, I would just put it into a Money Market at 5.05%.
     
    modernavalon
    modernavalon
    Banned
    Participation Meter
    Joined: Apr, 2007
    Posts: 287
    Posted: Sep. 13, 2007 - 3:07 PM ET #3

    The one problem with that is that $500 a year seems soo low I understand its 98% safe however Im willing to take more of a risk for a higher reward.
    Reply
    The one problem with that is that $500 a year seems soo low I understand its 98% safe however Im willing to take more of a risk for a higher reward.
     
    TheBest
    TheBest
    Banned
    Participation Meter
    Joined: Jun, 2002
    Posts: 6535
    Posted: Sep. 13, 2007 - 3:20 PM ET #4

    put all the money in the stock vip. and dont touch it for 5 years. and u will thank me . vip is expecting 95 percent growth best telecom stock in the world and just broke into the vietnamese market. slam it with every penny u own.
    Reply
    put all the money in the stock vip. and dont touch it for 5 years. and u will thank me . vip is expecting 95 percent growth best telecom stock in the world and just broke into the vietnamese market. slam it with every penny u own.
     
    depeche2
    depeche2
    Legend
    Participation Meter
    Joined: Feb, 2002
    Posts: 67006
    Posted: Sep. 13, 2007 - 4:19 PM ET #5

    How long are you putting this money away for, what is your timeframe?  Are you saving for a house down payment?  First thing to consider is whether you're going to hold it in a regular taxable account, traditional ira or roth ira.  Depends on what you qualify for, your timeframe, your current tax rate, etc.
    Reply
    How long are you putting this money away for, what is your timeframe?  Are you saving for a house down payment?  First thing to consider is whether you're going to hold it in a regular taxable account, traditional ira or roth ira.  Depends on what you qualify for, your timeframe, your current tax rate, etc.
     
    modernavalon
    modernavalon
    Banned
    Participation Meter
    Joined: Apr, 2007
    Posts: 287
    Posted: Sep. 13, 2007 - 4:39 PM ET #6

    You are exactly right I want to put it away for a house down payment. So put it away for like  3-10 years  I have never had any real money before depeche2 so I have never  even considered what I want to do with it. To be honest I dont think I fully understand what a IRA is . Thats why im asking you guys I dont have anyone in my life that can give me good advice and I really look up to alot of you guys on here  so im hoping you guys can be of some help.
    Reply
    You are exactly right I want to put it away for a house down payment. So put it away for like  3-10 years  I have never had any real money before depeche2 so I have never  even considered what I want to do with it. To be honest I dont think I fully understand what a IRA is . Thats why im asking you guys I dont have anyone in my life that can give me good advice and I really look up to alot of you guys on here  so im hoping you guys can be of some help.
     
    Gunners
    Gunners
    Veteran
    Participation Meter
    Joined: Feb, 2006
    Posts: 3392
    Posted: Sep. 13, 2007 - 5:01 PM ET #7

    well, be careful which of us you look up to!
    Reply
    well, be careful which of us you look up to!
     
    july4433
    july4433
    Rookie
    Participation Meter
    Joined: Sep, 2006
    Posts: 521
    Posted: Sep. 13, 2007 - 6:38 PM ET #8

    Just focus on buying a house( study home prices in flyers, internet, your neighborhood, ect... and compare, and remember the 3 rules of real estate, location, location, location. Buy a home in the neighborhood that you want to live in. Buy a home that you can afford, will be comfortable for you and you will happy to live in. You probably have to pay a certain amount each month to provide shelter for yourself anyway. Why not buy a house? What do they say? They are not making any more land (supply and demand law of economics)? The very best investment for most people in their lifetimes will be the home that they live in.
    Reply
    Just focus on buying a house( study home prices in flyers, internet, your neighborhood, ect... and compare, and remember the 3 rules of real estate, location, location, location. Buy a home in the neighborhood that you want to live in. Buy a home that you can afford, will be comfortable for you and you will happy to live in. You probably have to pay a certain amount each month to provide shelter for yourself anyway. Why not buy a house? What do they say? They are not making any more land (supply and demand law of economics)? The very best investment for most people in their lifetimes will be the home that they live in.
     
    wallstreetcappers
    wallstreetcappers
    Covers Linesmen
    Participation Meter
    Joined: Feb, 2003
    Posts: 58464
    Posted: Sep. 13, 2007 - 6:48 PM ET #9

    Big$$$,

    VIP looks OK for a telecom based on a PE ratio, most big fat telecoms sell at 15 PE or less, look at T and ALU (what a disaster), but look at price to sales and book..not a ton of value there.

    Sorry to disagree with you but mixing GROWTH and TELECOM in the same sentence doesnt ring true to me...
    Reply
    Big$$$,

    VIP looks OK for a telecom based on a PE ratio, most big fat telecoms sell at 15 PE or less, look at T and ALU (what a disaster), but look at price to sales and book..not a ton of value there.

    Sorry to disagree with you but mixing GROWTH and TELECOM in the same sentence doesnt ring true to me...
     
    july4433
    july4433
    Rookie
    Participation Meter
    Joined: Sep, 2006
    Posts: 521
    Posted: Sep. 13, 2007 - 6:56 PM ET #10

    How many hours every week, day, ect...  are you willing to study stocks, sportsbetting, ect... How much stress are you willing to take when or if you are losing money ( the less experienced you are the greater your odds of losing money, the greater the returns you are trying to acheive the greater the odds are that you will lose money, even if you are just losing money that you have already gained, losing so-called paper profits, trust me losing your profits is still  losing money? How badly do you really want to enter the competition of making and losing money? Failure is often acheived way before success, How will failure affect you, if this very common path to success is followed by you? Or just put your money in the money market account and relax, as previously mentioned, until you are ready to buy what will probably be your best investment, your house.
    Reply
    How many hours every week, day, ect...  are you willing to study stocks, sportsbetting, ect... How much stress are you willing to take when or if you are losing money ( the less experienced you are the greater your odds of losing money, the greater the returns you are trying to acheive the greater the odds are that you will lose money, even if you are just losing money that you have already gained, losing so-called paper profits, trust me losing your profits is still  losing money? How badly do you really want to enter the competition of making and losing money? Failure is often acheived way before success, How will failure affect you, if this very common path to success is followed by you? Or just put your money in the money market account and relax, as previously mentioned, until you are ready to buy what will probably be your best investment, your house.
     
    Vermeer
    Vermeer
    Veteran
    Participation Meter
    Joined: Dec, 2006
    Posts: 2910
    Posted: Sep. 13, 2007 - 10:54 PM ET #11

    The first thing for any individual to figure out, aside from time frame, is the risk/reward of any investment. There is always a trade off, the lower the risk, the lower the return.

     How much risk can you tolerate? If you would like to see for example, a little more risk in exchange for a little greater return, place a portion in the money market (low to no risk) and a portion in either a given equity, or a  mutual fund.Do proper due diligence and find a fund you feel comfortable with, and make certain their expense ratio is low.Go no load and compare expense ratios and turnover or churn. Third Avenue funds are cheap, use them as as comparison regarding expense ratios and performance.The guy who writes the quarterly report for the Third Avenue Value Fund basically writes an introduction to market analysis ever time.

     If you decide to pick one or two stocks, as a beginner, I would suggest you find one that has a history of paying consistent, preferably increasing dividends, and always reinvest those dividends. Most returns from stocks come from dividends, not simple share price growth.

     I would look into whether the company has a DRIP (direct reinvestment program)  to avoid some fees...(but be careful, as there are fees associated with DRIPs.) For example, a company like Walgreens allows you to open a DRIP with as little as $50. This also allows you to not necessarily tie up all of your money any one stock, and diversification is also something to be highly aware of. Do not get carried away with diversifcation, however, at the start;it is always better to do the research, and then settle on the best one, two, or three stocks you like.

      Trading and market timing are expensive, so I would avoid that trap starting out.Do it when you have some money to play around with, money that you feel you can afford to lose, as you will make bad trades, everyone does.

     The most important thing is to realize that you must educate yourself. Observe the reasoning of present or past investment pros (Warren Buffett, George Soros et al) See what they buy, but more importantly, understand why they are buying ( or bought) what they did.Look at their portfolios at a place like Stockpikr.com (look at most viewed, and you will see their known picks with some explanation of the thinking behind those choices.

     Read classic investment texts, both in fundamental (Graham and Dodds The Intelligent Investor would be one) and technical analysis.Think long term.People go broke trying to get rich quick, and impulsive buying or selling is lethal, just as it is in betting.Recall Will Roger's thought that the best way to double your money is to fold it, and put it back in your pocket.

     It can seem overwhelming at first, but it is not. Be informed. Read and understand business publications, WSJ, Barrons, etc.and of course be aware of current events, and world history.Time is more important than money, as you can always attempt to recapture lost money, but you never get back lost time. If you wish to start making money while you are learning, go the money market route, and immerse yourself for a few months or a year in reading as much as you can.Do not feel compelled to make a real decision without preparation.

       Watch, yes CNBC, or Bloomberg, or whatever, just to hear the logic behind some informed people's opinions.They have some interesting and very informed guests (However, take a guy like Cramer with a huge grain of salt, as he is an entertainer, but you also may want to read about his life story to get that that is not all he is.He has made serious money through investing before making more through entertainment).

      Lastly, look up an investment club in your area. Know anyone who is on their way to becoming a CPA?  Take her or him to lunch, and ask questions. Read The Automatic Millionaire and heed its prosaic advice...it is not glamorous, but compound interest is a wonderful thing.

     
    Good luck.
     
     
      
     
    Reply
    The first thing for any individual to figure out, aside from time frame, is the risk/reward of any investment. There is always a trade off, the lower the risk, the lower the return.

     How much risk can you tolerate? If you would like to see for example, a little more risk in exchange for a little greater return, place a portion in the money market (low to no risk) and a portion in either a given equity, or a  mutual fund.Do proper due diligence and find a fund you feel comfortable with, and make certain their expense ratio is low.Go no load and compare expense ratios and turnover or churn. Third Avenue funds are cheap, use them as as comparison regarding expense ratios and performance.The guy who writes the quarterly report for the Third Avenue Value Fund basically writes an introduction to market analysis ever time.

     If you decide to pick one or two stocks, as a beginner, I would suggest you find one that has a history of paying consistent, preferably increasing dividends, and always reinvest those dividends. Most returns from stocks come from dividends, not simple share price growth.

     I would look into whether the company has a DRIP (direct reinvestment program)  to avoid some fees...(but be careful, as there are fees associated with DRIPs.) For example, a company like Walgreens allows you to open a DRIP with as little as $50. This also allows you to not necessarily tie up all of your money any one stock, and diversification is also something to be highly aware of. Do not get carried away with diversifcation, however, at the start;it is always better to do the research, and then settle on the best one, two, or three stocks you like.

      Trading and market timing are expensive, so I would avoid that trap starting out.Do it when you have some money to play around with, money that you feel you can afford to lose, as you will make bad trades, everyone does.

     The most important thing is to realize that you must educate yourself. Observe the reasoning of present or past investment pros (Warren Buffett, George Soros et al) See what they buy, but more importantly, understand why they are buying ( or bought) what they did.Look at their portfolios at a place like Stockpikr.com (look at most viewed, and you will see their known picks with some explanation of the thinking behind those choices.

     Read classic investment texts, both in fundamental (Graham and Dodds The Intelligent Investor would be one) and technical analysis.Think long term.People go broke trying to get rich quick, and impulsive buying or selling is lethal, just as it is in betting.Recall Will Roger's thought that the best way to double your money is to fold it, and put it back in your pocket.

     It can seem overwhelming at first, but it is not. Be informed. Read and understand business publications, WSJ, Barrons, etc.and of course be aware of current events, and world history.Time is more important than money, as you can always attempt to recapture lost money, but you never get back lost time. If you wish to start making money while you are learning, go the money market route, and immerse yourself for a few months or a year in reading as much as you can.Do not feel compelled to make a real decision without preparation.

       Watch, yes CNBC, or Bloomberg, or whatever, just to hear the logic behind some informed people's opinions.They have some interesting and very informed guests (However, take a guy like Cramer with a huge grain of salt, as he is an entertainer, but you also may want to read about his life story to get that that is not all he is.He has made serious money through investing before making more through entertainment).

      Lastly, look up an investment club in your area. Know anyone who is on their way to becoming a CPA?  Take her or him to lunch, and ask questions. Read The Automatic Millionaire and heed its prosaic advice...it is not glamorous, but compound interest is a wonderful thing.

     
    Good luck.
     
     
      
     
     
    modernavalon
    modernavalon
    Banned
    Participation Meter
    Joined: Apr, 2007
    Posts: 287
    Posted: Sep. 13, 2007 - 11:47 PM ET #12

    Thank you guys so much for all the insight. I am still totally up in the air with what I should do. Wallstreet do you have any stocks in mind or a mutual fund that would be a good idea for someone in my situation? Im thinking of going the mutual fund route. My one problem now is choosing a mutual fund and how to find out about them and once I have decided on one where to go to get one.

    Thanks
    Reply
    Thank you guys so much for all the insight. I am still totally up in the air with what I should do. Wallstreet do you have any stocks in mind or a mutual fund that would be a good idea for someone in my situation? Im thinking of going the mutual fund route. My one problem now is choosing a mutual fund and how to find out about them and once I have decided on one where to go to get one.

    Thanks
     
    depeche2
    depeche2
    Legend
    Participation Meter
    Joined: Feb, 2002
    Posts: 67006
    Posted: Sep. 14, 2007 - 12:01 AM ET #13

    Quote Originally Posted by modernavalon:

    You are exactly right I want to put it away for a house down payment. So put it away for like  3-10 years  I have never had any real money before depeche2 so I have never  even considered what I want to do with it. To be honest I dont think I fully understand what a IRA is . Thats why im asking you guys I dont have anyone in my life that can give me good advice and I really look up to alot of you guys on here  so im hoping you guys can be of some help.


    Put 4K into a Roth IRA and then another 5K next year.  You can withdraw the contribution amount at any time tax-free and penalty-free.  You can also withdraw up to $10,000 in earnings tax and penalty-free for use toward your first residence.  So when you turn the 10K into 20K in 4 years you can withdraw all of it without paying a penny in taxes and all of it grows tax-deferred and then tax-free in the interim.  Also allows you to buy and sell within the account without worrying about short-term capital gains or dividends. 
    Reply
    Quote Originally Posted by modernavalon:

    You are exactly right I want to put it away for a house down payment. So put it away for like  3-10 years  I have never had any real money before depeche2 so I have never  even considered what I want to do with it. To be honest I dont think I fully understand what a IRA is . Thats why im asking you guys I dont have anyone in my life that can give me good advice and I really look up to alot of you guys on here  so im hoping you guys can be of some help.


    Put 4K into a Roth IRA and then another 5K next year.  You can withdraw the contribution amount at any time tax-free and penalty-free.  You can also withdraw up to $10,000 in earnings tax and penalty-free for use toward your first residence.  So when you turn the 10K into 20K in 4 years you can withdraw all of it without paying a penny in taxes and all of it grows tax-deferred and then tax-free in the interim.  Also allows you to buy and sell within the account without worrying about short-term capital gains or dividends. 
     
    Vermeer
    Vermeer
    Veteran
    Participation Meter
    Joined: Dec, 2006
    Posts: 2910
    Posted: Sep. 14, 2007 - 12:13 AM ET #14

    Quote Originally Posted by depeche2:



    Put 4K into a Roth IRA and then another 5K next year.  You can withdraw the contribution amount at any time tax-free and penalty-free.  You can also withdraw up to $10,000 in earnings tax and penalty-free for use toward your first residence.  So when you turn the 10K into 20K in 4 years you can withdraw all of it without paying a penny in taxes and all of it grows tax-deferred and then tax-free in the interim.  Also allows you to buy and sell within the account without worrying about short-term capital gains or dividends. 


      I second that recommendation.Accurate and concise!!
    Reply
    Quote Originally Posted by depeche2:



    Put 4K into a Roth IRA and then another 5K next year.  You can withdraw the contribution amount at any time tax-free and penalty-free.  You can also withdraw up to $10,000 in earnings tax and penalty-free for use toward your first residence.  So when you turn the 10K into 20K in 4 years you can withdraw all of it without paying a penny in taxes and all of it grows tax-deferred and then tax-free in the interim.  Also allows you to buy and sell within the account without worrying about short-term capital gains or dividends. 


      I second that recommendation.Accurate and concise!!
     
    modernavalon
    modernavalon
    Banned
    Participation Meter
    Joined: Apr, 2007
    Posts: 287
    Posted: Sep. 14, 2007 - 12:32 AM ET #15

    Sounds like a great idea and sounds like what I should and will do. My last question is where do I go to do such a thing?

    Thanks Depeche2
    Reply
    Sounds like a great idea and sounds like what I should and will do. My last question is where do I go to do such a thing?

    Thanks Depeche2
     
    wallstreetcappers
    wallstreetcappers
    Covers Linesmen
    Participation Meter
    Joined: Feb, 2003
    Posts: 58464
    Posted: Sep. 14, 2007 - 12:46 AM ET #16

    Avalon,

    I am not sure I agree with the Roth ideas given by others. I would try and contribute to a Roth from regular money that you get year to year, or say you know there is a tax refund coming your way after you are working on them, I would forgo the tax return and contribute to a Roth IRA.

    To me it sounds like you are going to need the money within 10 yrs. I dont see the benefit tax wise to a Roth if you are needing it in less than 20 yrs..it is also a hassle to WD the money from a Roth, even though for certain things you can without penalty. I would suggest considering investing it regularly, outside a retirement account and ALSO start investing in a Roth every single year....

    As for what to invest in..if you want my honest legit opinion, I would keep it very liquid and see if the market goes to crap next year, then try and pick up a winner, a great stock that you are ok holding onto for a long period of time but want a big return, because if the US market turns to crap in the next 18 months there will be some AWESOME bargains for someone with a longer term horizon.

    I would suggest against trading short term with these funds.
    Reply
    Avalon,

    I am not sure I agree with the Roth ideas given by others. I would try and contribute to a Roth from regular money that you get year to year, or say you know there is a tax refund coming your way after you are working on them, I would forgo the tax return and contribute to a Roth IRA.

    To me it sounds like you are going to need the money within 10 yrs. I dont see the benefit tax wise to a Roth if you are needing it in less than 20 yrs..it is also a hassle to WD the money from a Roth, even though for certain things you can without penalty. I would suggest considering investing it regularly, outside a retirement account and ALSO start investing in a Roth every single year....

    As for what to invest in..if you want my honest legit opinion, I would keep it very liquid and see if the market goes to crap next year, then try and pick up a winner, a great stock that you are ok holding onto for a long period of time but want a big return, because if the US market turns to crap in the next 18 months there will be some AWESOME bargains for someone with a longer term horizon.

    I would suggest against trading short term with these funds.
     
    modernavalon
    modernavalon
    Banned
    Participation Meter
    Joined: Apr, 2007
    Posts: 287
    Posted: Sep. 14, 2007 - 2:18 AM ET #17

    Thanks wallstreet ! OK thats what im gonna do. I will hold onto the money in a cd or a money market account for the next 18 months or so and ask you for stock advice in the meantime if thats ok? I am hoping you will let me know if you here of anything that I should dump the $10,000 into and I will do so right away. Thanks again for all your time and advice. Now all I have to do is maage to not touch the money for any luxurys or superbowl all in bets.
    Reply
    Thanks wallstreet ! OK thats what im gonna do. I will hold onto the money in a cd or a money market account for the next 18 months or so and ask you for stock advice in the meantime if thats ok? I am hoping you will let me know if you here of anything that I should dump the $10,000 into and I will do so right away. Thanks again for all your time and advice. Now all I have to do is maage to not touch the money for any luxurys or superbowl all in bets.
     
    Gunners
    Gunners
    Veteran
    Participation Meter
    Joined: Feb, 2006
    Posts: 3392
    Posted: Sep. 14, 2007 - 8:18 AM ET #18

    put it all on a coin flip superbowl bet! 
    Reply
    put it all on a coin flip superbowl bet! 
     
    wallstreetcappers
    wallstreetcappers
    Covers Linesmen
    Participation Meter
    Joined: Feb, 2003
    Posts: 58464
    Posted: Sep. 14, 2007 - 10:49 AM ET #19

    Avalon,

    The benefit of a CD does not make it worth the downside that you must hold it to term without penalty. Leave the money in a money market fund and dont mess with a CD..

    And if you arent planning on investing in a IRA, or you dont think you will, then it changes the assumptions. The key is you NEED to be making those yearly investments into IRA accounts..
    Reply
    Avalon,

    The benefit of a CD does not make it worth the downside that you must hold it to term without penalty. Leave the money in a money market fund and dont mess with a CD..

    And if you arent planning on investing in a IRA, or you dont think you will, then it changes the assumptions. The key is you NEED to be making those yearly investments into IRA accounts..
     
    depeche2
    depeche2
    Legend
    Participation Meter
    Joined: Feb, 2002
    Posts: 67006
    Posted: Sep. 14, 2007 - 11:15 AM ET #20

    Why is it a hassle to withdraw from a Roth?  It should be incredibly easy.  You then need to figure what, if any is subject to penalty or tax.  Up to the contribution amount is never a problem.  If it's over that and you are not 59.5 years old, then you need an exception to tax and penalty.  First time homebuy downpayment is one of them.  I don't really see the difference in whether the Roth contribution "comes from" the inheritance or earnarked from earnings or a tax refund.   Key thing is annual limits which is 4K for 2007 (up to April 15, 2008) and 5K in 2008.
    Reply
    Why is it a hassle to withdraw from a Roth?  It should be incredibly easy.  You then need to figure what, if any is subject to penalty or tax.  Up to the contribution amount is never a problem.  If it's over that and you are not 59.5 years old, then you need an exception to tax and penalty.  First time homebuy downpayment is one of them.  I don't really see the difference in whether the Roth contribution "comes from" the inheritance or earnarked from earnings or a tax refund.   Key thing is annual limits which is 4K for 2007 (up to April 15, 2008) and 5K in 2008.
     
    Vermeer
    Vermeer
    Veteran
    Participation Meter
    Joined: Dec, 2006
    Posts: 2910
    Posted: Sep. 14, 2007 - 11:17 AM ET #21

    As above from WSC ...and if you bet that money, tell me where you are and I will come help you kick your own ass. LOL
    Reply
    As above from WSC ...and if you bet that money, tell me where you are and I will come help you kick your own ass. LOL
     
    wallstreetcappers
    wallstreetcappers
    Covers Linesmen
    Participation Meter
    Joined: Feb, 2003
    Posts: 58464
    Posted: Sep. 14, 2007 - 11:25 AM ET #22

    D2,

    The assumption is that he will be making a retirement contribution from normal income sources.

    For a short term period like he is considering I dont see the huge benefit on a one time retirement investment, it should come yearly from normal sources. I think everyone should forgo (well most everyone) tax returns and invest the ammt instead.

    If I recall (I think I am right here) that even under a down payment exemption, that only covers PRINCIPAL, not earnings on the principal..I think the principal is ok to WD without penalty, but the earnings are subject to tax..for a HOUSE that is..now other things qualify for earnings and gains..but I dont think a house dows (I might be wrong, but I think that is how I recall it).

    So he has to fill out tax forms, deal with the broker to WD the funds, on such a small ammt. I would rather he invest a tax refund or even just ear mark regular funds for an IRA and keep this liquid outside a retirement acct.
    Reply
    D2,

    The assumption is that he will be making a retirement contribution from normal income sources.

    For a short term period like he is considering I dont see the huge benefit on a one time retirement investment, it should come yearly from normal sources. I think everyone should forgo (well most everyone) tax returns and invest the ammt instead.

    If I recall (I think I am right here) that even under a down payment exemption, that only covers PRINCIPAL, not earnings on the principal..I think the principal is ok to WD without penalty, but the earnings are subject to tax..for a HOUSE that is..now other things qualify for earnings and gains..but I dont think a house dows (I might be wrong, but I think that is how I recall it).

    So he has to fill out tax forms, deal with the broker to WD the funds, on such a small ammt. I would rather he invest a tax refund or even just ear mark regular funds for an IRA and keep this liquid outside a retirement acct.
     
    Vermeer
    Vermeer
    Veteran
    Participation Meter
    Joined: Dec, 2006
    Posts: 2910
    Posted: Sep. 14, 2007 - 11:44 AM ET #23

    "If I recall (I think I am right here) that even under a down payment exemption, that only covers PRINCIPAL, not earnings on the principal..I think the principal is ok to WD without penalty, but the earnings are subject to tax..for a HOUSE that is"

     That is how I recall it too, but may be wrong of course...
    Reply
    "If I recall (I think I am right here) that even under a down payment exemption, that only covers PRINCIPAL, not earnings on the principal..I think the principal is ok to WD without penalty, but the earnings are subject to tax..for a HOUSE that is"

     That is how I recall it too, but may be wrong of course...
     
    modernavalon
    modernavalon
    Banned
    Participation Meter
    Joined: Apr, 2007
    Posts: 287
    Posted: Sep. 14, 2007 - 12:11 PM ET #24

    All my income is under the table so I have no tax return checks coming anytime soon till I get out of school and find myself a real job as of right now my bank offers a liquid cd that pays just shy of 5% I can take it out at anytime with no penaltys. I just want more how about a mutual fund of some sort> I hear about them all the time with a 10 - 20 % increase average. Is this a myth? Vermeer don't worry I have learned my lesson from not flat betting so I will not be making one single large wager. I have considered putting the $10,000 in a matchbook account and totall raising my unit amounts to $500 and just playing the games like it was my job and do 10 times the research as before. As fun as that sounds im scared I am not good enough capper to do such a thing.
    Reply
    All my income is under the table so I have no tax return checks coming anytime soon till I get out of school and find myself a real job as of right now my bank offers a liquid cd that pays just shy of 5% I can take it out at anytime with no penaltys. I just want more how about a mutual fund of some sort> I hear about them all the time with a 10 - 20 % increase average. Is this a myth? Vermeer don't worry I have learned my lesson from not flat betting so I will not be making one single large wager. I have considered putting the $10,000 in a matchbook account and totall raising my unit amounts to $500 and just playing the games like it was my job and do 10 times the research as before. As fun as that sounds im scared I am not good enough capper to do such a thing.
     
     
    Vermeer
    Vermeer
    Veteran
    Participation Meter
    Joined: Dec, 2006
    Posts: 2910
    Posted: Sep. 14, 2007 - 12:34 PM ET #25

    I meant betting any of it...or no more than just complete hell i need to have some fun and use 3% and bet real small until you know what you are doing. (and mentally write that money off as lost anyway).But 99.7 % of that, invest, do not trade, nor bet
    Reply
    I meant betting any of it...or no more than just complete hell i need to have some fun and use 3% and bet real small until you know what you are doing. (and mentally write that money off as lost anyway).But 99.7 % of that, invest, do not trade, nor bet
    All Forums | Investments
    12 Next Last»

    Hot Forums IconHot Forum Topics

    • Tuesday 11/10/2026 353
    • BEAT Your book 127,560
    • 🏈🏈🏈 Fubah2's risky CFB bets 300,747
    • I'm embarrassed for Trump supporters 63,593
    • $$ALL IN ( 2x5uNIT=1-O,5UnitUNDER=4-2,5Unit over=1-O,5Unit ATS=2-O,2Unit=4-o_ =+ 43 Units 5,909
    • Florida Man Tuesday 4,361
    • *EdgeHunter Ohio VS Miami Ohio - NEW WEEK, NEW MONEY!* 3,025
    • Bags Tuesday LARGE **Michigan State vs Duke** 2,388
    • Trump's legacy? 37,171
    • PART DEUX 87

    Warning - External Link

    Report User

    Thank you for reporting
    This content is abusive or harmful
    This post is spam
    An error has occurred
    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    Delete Post

    Are you sure you would like to remove this post?

    Remove Thread

    Are you sure you would like to remove this thread?

    Scan Results

    Login/Register

    Happy to have you join the conversation. To do so, please login or create an account.
    Accounts are free and easy to create.

    Search


    Loading…

    Loading…

    About Us
    Contact Us
    Careers
    Our Team
    Brand
    Testimonials
    Betting Guides
    Sportsbook Reviews
    Betting News
    Podcasts
    Responsible Gambling
    Betting Sites
    US Betting Sites
    Canada Betting Sites
    Canada Casinos
    Best Betting Apps
    Contests
    Streak Survivor
    King of Covers
    Office Pools
    The Covers community has
    810,221
    lifetime members worldwide
    Join our community today
    Covers 30 Years Logo Established in 1995,
    Covers is the world
    leader in sports
    betting information.
    21+
    Gambling problem? Call 1-800-GAMBLER
    Help Privacy Privacy Choices Terms of Service Cookies Sitemap Forum
    YouTube logo
    Facebook logo
    Twitter logo
    Instagram logo
    LinkedIn logo
    Google News logo
    Covers is verified safe by:
    Evalon Logo Logo GPWA Logo GDPR logo Logo GeoTrust logo Logo
    Covers Logo
    Copyright © 1995 - 2026 Genius Sports. All Rights Reserved.
    If you choose to make use of any information on this website including online sports betting services from any websites that may be featured on this website, we strongly recommend that you carefully check your local laws before doing so.It is your sole responsibility to understand your local laws and observe them strictly.Covers does not provide any advice or guidance as to the legality of online sports betting or other online gambling activities within your jurisdiction and you are responsible for complying with laws that are applicable to you in your relevant locality.Covers disclaims all liability associated with your use of this website and use of any information contained on it.As a condition of using this website, you agree to hold the owner of this website harmless from any claims arising from your use of any services on any third party website that may be featured by Covers.