JustaTexan Posted September 29, 2008 Report Share Posted September 29, 2008 I am receiving a little inheritance from my grandmother who passed this year. My father is pretty much forcing me to put 15k of it into a CD of some sort and rationing the rest to me for whatever he feels necessary. He'll probably try to pick it out and everything but does anybody have any recommendations I could present to him? I'm really nervous about investing it right now anyways. But like I said-not my choice. 1 Link to comment Share on other sites More sharing options...
nascar Posted September 29, 2008 Report Share Posted September 29, 2008 I take it you don't want to piss off your dad, so I won't suggest anything.. Link to comment Share on other sites More sharing options...
JustaTexan Posted September 29, 2008 Author Report Share Posted September 29, 2008 (edited) I take it you don't want to piss off your dad, so I won't suggest anything..He's mad because I don't want to use it right now for a larger and nicer house. I have a small little house that suits my needs just fine and he wanted me to use my money for a down payment for a new one. However, I don't want to rack up more debt. I like my little house and want to keep it and get it paid for in full. My goals are not his goals though. Guarantee you my younger brother will get his share free and clear. Enough soapbox though....But I will present suggestions to him for investing. So if you know some why don't you give them to me Nascar? Edited December 22, 2009 by DEANNATX Link to comment Share on other sites More sharing options...
JustaTexan Posted September 29, 2008 Author Report Share Posted September 29, 2008 Or if you think some other type of investment would be better for me, please do tell! I really do not know much about investments at all. Link to comment Share on other sites More sharing options...
nascar Posted September 29, 2008 Report Share Posted September 29, 2008 PM Link to comment Share on other sites More sharing options...
JustaTexan Posted September 29, 2008 Author Report Share Posted September 29, 2008 Thanks! Link to comment Share on other sites More sharing options...
Ravenous Wolf Posted October 11, 2008 Report Share Posted October 11, 2008 Your dad is actually correct right now. People are abandoning stocks and dumping money into CDs right now because stocks just went down the toilet.But the real question is just how active are you going to be with your investments and that will determine what your answer is.The reason is because of the nature of money. One day, it is going great like the Dow hovering around 14,000 and the next day it dips below 9000. However, it is all cyclical too.Some folks monitor their portfolio every day, others once a week, once a month, and then there are many who stuff it away and don't want to be bothered with it for the next twenty years.Not to side with your dad, but for those who want to manage wealth properly, they like to ensure that it is being handled right. Link to comment Share on other sites More sharing options...
Ravenous Wolf Posted October 11, 2008 Report Share Posted October 11, 2008 Also for DHK, what is your take on this... Link to comment Share on other sites More sharing options...
DHK Posted October 11, 2008 Report Share Posted October 11, 2008 First, the relationship questions with Dad: - Do you live at home with him? - Is he supporting you?If the answers to both of those questions are "yes", you probably ought to do what he thinks to keep the peace in your home. (BTW, whenever I listen to my parents, they have never let me down or led me astray. I hope you are blessed with good parents as I have been.)Second, the savings questions: - Do you have current DEBTS you can pay off with that money? Paying down the debt with "windfall" money is a great guaranteed after-tax investment that frees up additional cash flow. - Do you have an emergency fund with 3-6 months cash reserve? Right now, even though the "sky is falling" on the stock market, CASH IS KING!Third, the Protection questions: - Do you have life insurance? - Do you have disability insurance? - Do you have a liability/umbrella policy? (BTW, this is CHEAP.)Fourth, the investment questions: - If you have a sound savings and insurance picture, NOW its time to begin your investment program. Why now? Because you won't feel as vunerable to market forces that are outside of your control. I think people are panicking with the market because it represents the majority of their life's savings and they didn't properly diversify between risk and safe money, taxable and tax-free money. - If this new CD is your new emergency fund (3-6 months worth), can you begin or increase your 401(k) contributions? - If you already had 3-6 months of expenses saved in a risk-free way, then use the CD to get into some investments. At this time, I'd be looking at STOCK mutual funds as the market is completely depressed right now and I'd be looking for the biggest return on that money OVER A 5+ YEAR TIME HORIZON.The market WILL come back. What we don't know is WHEN. So, if you plan to begin an investment strategy, you should be investing for a 5+ time horizon and know that you don't have ANY immediate plans for these funds that you plan to invest in the market.What kind of investments? Load or no-load? I'll let you determine those on your own. BTW, those who take the advice of a financial professional (not salesman, but professional) will see higher returns over a "do-it-yourselfer" because the professional will help you see your financial picture in a more objective viewpoint. If you feel that you would've "sold out" of your investments by now in the market, then paying the small "load" might be a very good investment to encourage you to stick it out in the market. This way, you need to get back the value of what you paid AND you get a professional to help you through.Just my $.02 on this. Link to comment Share on other sites More sharing options...
JustaTexan Posted October 12, 2008 Author Report Share Posted October 12, 2008 Your dad is actually correct right now. People are abandoning stocks and dumping money into CDs right now because stocks just went down the toilet.But the real question is just how active are you going to be with your investments and that will determine what your answer is.The reason is because of the nature of money. One day, it is going great like the Dow hovering around 14,000 and the next day it dips below 9000. However, it is all cyclical too.Some folks monitor their portfolio every day, others once a week, once a month, and then there are many who stuff it away and don't want to be bothered with it for the next twenty years.Not to side with your dad, but for those who want to manage wealth properly, they like to ensure that it is being handled right.Thanks! I don't disagree with my Dad about putting it some where secure. I want it somewhere very secure and was wanting ya'lls advice. I don't really know much at all about investing. Big dingbat when it comes to stocks and cd's and all that jazz. Link to comment Share on other sites More sharing options...
JustaTexan Posted October 12, 2008 Author Report Share Posted October 12, 2008 DHK: Thanks for all the advice! No, moved out of Daddy's house 8 years ago. Supported myself 100%. But we do work together so I see him everyday. He is also a wonderful grandfather and usually a good Dad so I do not want to hurt our relationship. But we have kind of come to an agreement. He gave me a bit of the $$ to do as I please with it. I wanted to pay off some of my cards and things like that with it. And the remaining 15k we are goig to sit down and figure it out. I am thinking 5k into a "rainy day" account. The other 10k into a CD that I can add to. I also just upped my 401k contribution to 6%. I know that doesn't sound like much but I was at 3% so it felt bold. Link to comment Share on other sites More sharing options...
JustaTexan Posted October 22, 2008 Author Report Share Posted October 22, 2008 Okay anybody have any advice about what kind of cd to put this money into? I want something I can add to as I save up money probably quarterly. I plan to keep it until I purchase my second home-no sooner than 5 years. Are these things 100% secure? That's my main concern. Link to comment Share on other sites More sharing options...
ManWithANewPlan Posted October 22, 2008 Report Share Posted October 22, 2008 As a deposit with a bank, CDs are insured by the FDIC. FDIC recently increased their insurance to 250k, so if you are depositing less than 250k, then yes, your money is about as safe as it gets. Link to comment Share on other sites More sharing options...
Denita Posted October 22, 2008 Report Share Posted October 22, 2008 DeannaTX, if you have more than $250k you could spread it around to your friends at CIC:)++ Just kidding... Link to comment Share on other sites More sharing options...
JustaTexan Posted October 22, 2008 Author Report Share Posted October 22, 2008 DeannaTX, if you have more than $250k you could spread it around to your friends at CIC:)++ Just kidding...Haha! No, not that much. I wish! And thanks ManWithANewPlan. With this economy, I am just concerned about placing it into a bank at all but I know that's what I need to do. Although with one of our local banks I think I would be okay. Our area isn't really suffering as much as the other areas. Link to comment Share on other sites More sharing options...
DHK Posted October 22, 2008 Report Share Posted October 22, 2008 Okay anybody have any advice about what kind of cd to put this money into? I want something I can add to as I save up money probably quarterly. I plan to keep it until I purchase my second home-no sooner than 5 years. Are these things 100% secure? That's my main concern.https://www.dcu.org/personal_banking/cd_menu-index.htmlClick above and read about the "Add-on" feature.Basically, open your CD with DCU and you can add to it as long as you're adding $100+ and you have a CD term of 12 months or less.Here's info on NCUA insurance (the "FDIC" for credit unions):https://www.dcu.org/streetwise/howto/index-ncua.html Link to comment Share on other sites More sharing options...
JustaTexan Posted October 22, 2008 Author Report Share Posted October 22, 2008 So I can't add on if my cd terms are long-term? I wanted to keep it for a good while. Longer than 12 months. Thanks guys! Link to comment Share on other sites More sharing options...
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