Elliott.

Put it in a CD with HEAVY penalties - that way it won't be worthwhile taking it out

Jonny

 

Most of the money is insurance money. About 3/4's of it that is. The other 1/4 is my money. I make my money by buying things cheap and selling them for more then I bought them for. I have been doing that with paintball for awhile, but now am thinking of stepping up to cars soon.

Johnny: Do you think I should start investing or just put it in a CD? I know the CD will be less risk, but do you think I could do well in the market?

 

If you want to invest 10K of it or more, there are always stocks, of course....but they are risky. I myself have always liked municipal bonds, which are usually available in blocks of $5000 each, sometimes with a slight premium or discount. The interest they pay off (usually twice a year) is both Federal and state tax-free if you live in the state you invest in. There are also municipal bond funds, where you buy shares insteand of individual bonds.....these usually pay interest every month, and are also tax-free. Any broker at an investment firm can buy them for you...or in some cases you can buy them directly yourself rom the mutual fund.

I have invested in both for some years now and have built up a pretty good retirement nest egg. (which I start in two weeks, BTW)

 

Congratulations on the retirement and thanks a lot for the tips!!!

 

IMO, invest the money on yourself by getting an education, whether for college or some other form of formal schooling, you'll be far far ahead in the game called Life if you do. Once you have a degree, one day you can be like me and have TWO Lexus' in your garage.

 

Elliott,

Loaded question. You could do very well in the market - or else you could lose your *****!

CD's are great, but low risk and low reward.

I would look at investing into some mutual funds. I have been looking at Emerging Markets. Also, you can't go wrong with Energy.

But then again, if you don't trust yourself with money then you may want to go with a CD.

I always liked investing in stocks/mutual funds because it is kind of like gambling everyday. It is fun to sign on and see how your stock is looking for the day. With a CD you know how much you are getting and the excitement is minimal. You are young and want to have fun with your money.

Why not put most of your money in a 6-month CD and take a little and use it to start trading some stocks. See how you do. If you enjoy it, when your term expires on your CD, throw a little more into your stocks. If you get owned by the stock market - go back to the CD

Jonny

 

Well, it's certainly no fun when the bottom falls out of stock prices. While I can't say with certainty that there will be a crash, the Dow Jones right now is at record highs....14,000 and up. It is not likely to go up much further before a sharp downturn happens. In the investment world, that is known as a "correction".......when stock prices get overvalued and fall back to levels that more accurately reflect market conditions.