What is the best way to make my money work?

[McRib]

My industry is not known for retirement and pensions and the likes thereof. With that said, I came across some money unexpectedly recently and I do not want to squander it. I wanna make it make me money for retirement. It's not much. About 4k. What's the best way to put this money to work other than cocaine or getting Yuri and the boys involved??

 

[BHC Vic]

I want to know too. I like that a money market is safe but I feel like maybe I can do better?

 

[RCDave]

Payoff Debt

 

[OldSchoolBoats]

My industry is not known for retirement and pensions and the likes thereof. With that said, I came across some money unexpectedly recently and I do not want to squander it. I wanna make it make me money for retirement. It's not much. About 4k. What's the best way to put this money to work other than cocaine or getting Yuri and the boys involved??

I would use it to pay down any debt you may have, maybe pay down a car note??

Other than that, maybe pick a project around the house that you have been putting off and use it there.

 

[McRib]

Payoff Debt

In 5 yrs I'll be debt free. 4k won't do shit. I wanna put it to work now so when I'm debt free I can add to it accordingly.

 

[Sbarry]

Payoff Debt

X2... Then pay those payments, that were being paid to banks, to yourself.

I am on a mission to be 100% debt free. Not going to be an easy feat, but that is the plan.

 

[McRib]

Being debt free will free up a lot of money but I won't make what I make forever.

 

[rivermobster]

http://www.dinarguru.com/

:tbi

 

[ductape1000]

Since you said no blow, just go with the hookers...

The girls will show how your money works!! :tbi

 

[wsuwrhr]

Sorry Ribbie,

Ive tried similar posts through the years. Always works out the same.

Brian

 

[USMC2010]

Do you have a 401k?

 

[McRib]

Since you said no blow, just go with the hookers...

The girls will show how your money works!! :tbi

My pump hand is not what it used to be. Bitches be crazy nowadays. Too much work!

 

[Member: 71]

Put the $4k towards a Whipple and charge the remaining $5k on a credit card.


https://whipplesuperchargers.com/index.php?dispatch=products.view&product_id=149


#yolo

 

[McRib]

Sorry Ribbie,

Ive tried similar posts through the years. Always works out the same.

Brian

Maybe I'll ask over on Facebook with the river whips peeps.

 

[LargeOrangeFont]

Pay off debt.

If you have debt, it is likely that the debt is accruing interest faster than the $4K will accumulate interest.

I know that is a boring answer. Aside from that put it in your 401K or open an IRA.

 

[mjc]

Do you have a financial adviser yet? If not start looking for one. Otherwise start buying some funds through Scott trade or any of the others like them.

 

[McRib]

Do you have a 401k?

No. They offer but don't contribute. That to me is a savings acct.

 

[MissB]

If you have a 401K, max that out for the year.
If you have a roth, throw some in there.
If you have neither, set up a roth and put it in there

 

[Meaney77]

Roth IRA?

 

[ductape1000]

My pump hand is not what it used to be. Bitches be crazy nowadays. Too much work!

Ima guessin you meant your pimp ✋.....

[emoji41] [emoji379]

 

[LargeOrangeFont]

If you have a 401K, max that out for the year.
If you have a roth, throw some in there.
If you have neither, set up a roth and put it in there

This.

 

[LargeOrangeFont]

No. They offer but don't contribute. That to me is a savings acct.

How do you figure that is a savings account? I mean you can use it like one, but you are only hurting your future self if you do that.

 

[McRib]

Fuck it. I'm just gonna buy 133 bottles of titos.

 

[ChevelleSB406]

 

[Dirtbag]

401k First..max it out..
while the 4k doesnt seem like a lot to your debt its a lot more than you think.
4k is not going to make a lot of interest over your next 5 years. You arent going to find anything making 10% on your money for 4k.

Theres a lot of money to be saved by paying off debt.

 

[MissB]

No. They offer but don't contribute. That to me is a savings acct.

Ribby, that's tax free money till you use it. YOu should at least contribute. Start today. Even if it's small, which will be a start.

 

[Riverbound]

Hard to go wrong with rental properties.

 

[gmnhra]

buy Amazon 20 years ago....

1,000 at IPO....500,000 today

damn....

 

[pwerwagn]

I second the 401k route, or pay off debt.

I might go the pay off debt route right now since the market is high. Once you pay something off, put that monthly pymt to your 401 and lower your taxable.

Fwiw, I just checked my 401 and I'm up ~10% Since Jan 1.

 

[ductape1000]

Hard to go wrong with rental properties.

A 4k windfall is going to buy one hell of a rental... [emoji15]

 

[wsuwrhr]

Fuck it. I'm just gonna buy 133 bottles of titos.

Ive got a truck and a forklift.

Where we headed? Costco?

 

[LargeOrangeFont]

A 4k windfall is going to buy one hell of a rental... [emoji15]

He could buy a city block in Flint, MI

 

[LargeOrangeFont]

Ribby, that's tax free money till you use it. YOu should at least contribute. Start today. Even if it's small, which will be a start.

And if your company matches at all, you have thrown away more than 4K.

 

[Cole Trickle]

4K isn't going to make you much of a return like mentioned.

Basically the thought with paying off dept is credit cards are costing you 9-12% interest on average with good credit. There is no way to make that investing safely.

I'm not sure I would throw it at a car that's costing you 2% but that's just me.

I recently looked at the day trading program but honestly unless you have a ton of free time and love getting up early you can loose more than you make. You can suceed but it seems like a grind and high stress program.

Maybe use that $$ to pick up a couple yard cars at auction that you could then flip? If you buy a clean lowish mileahge toyota/honda for cheap you can make better fast $$$ with 4K than with a 401K or mutual fund.

 

[snafu]

Roth IRA. Look at Vanguard funds.....low expense ratio. Take the advise of Warren Buffett and pick an S&P 500 Index fund. Pay yourself first and add what you can monthly or annually.

 

[spectra3279]

Ribby, that's tax free money till you use it. YOu should at least contribute. Start today. Even if it's small, which will be a start.

True. I started doing it at first just to lower my taxable income.

I'm single make 100K a year and have nothing I can write off. So I'm fucked. And I owe nobody.

 

[LargeOrangeFont]

I'm single make 100K a year and have nothing I can write off. So I'm fucked. And I owe nobody.

What a loser!!

 

[ductape1000]

4K isn't going to make you much of a return like mentioned.

Basically the thought with paying off dept is credit cards are costing you 9-12% interest on average with good credit. There is no way to make that investing safely.

I'm not sure I would throw it at a car that's costing you 2% but that's just me.

I recently looked at the day trading program but honestly unless you have a ton of free time and love getting up early you can loose more than you make. You can suceed but it seems like a grind and high stress program.

Maybe use that $$ to pick up a couple yard cars at auction that you could then flip? If you buy a clean lowish mileahge toyota/honda for cheap you can make better fast $$$ with 4K than with a 401K or mutual fund.

Since we need someone to replace Steve, this is a great idea!!

 

[spectra3279]

Actually I feel like it at tax time.

 

[Cole Trickle]

Since we need someone to replace Steve, this is a great idea!!

McFlipfull:skull:thumbsup

 

[LargeOrangeFont]

Since we need someone to replace Steve, this is a great idea!!

In for the "LOWISH MILEAGE USED TOYOTA/HONDA VALUES GOING UP 50% IN 2 MONTHS TROOF and FACTS" thread.

 

[LargeOrangeFont]

Actually I feel like it at tax time.

I have some write offs and still do.

 

[530RL]

This should answer all your questions.

http://www.vanguard.com/pdf/icradd.pdf



In more simple terms, historical long term rates of return on equities post WWII are about 8 percent per year. So if you have debt that you are paying a higher rate on, you are better off paying yourself that higher rate of return by retiring the debt early.

To the extent you can put money into a 401k or other tax advantaged retirement account, then the after tax return on that money, given the tax advantages when putting it in the retirement account, must be considered when calculating your investment return versus your debt cost.

I don't care what anyone says, 4 Grand is a lot of money and more money than the vast majority of US families have in their checking account. Every penny saved and then invested matters over 50 years of work as if you were born post 1960, you are working to 67 or 70 not 65 to become eligible for Medicare and social Security. For example, if you put that 4k in an index fund and compounded at 8 percent per year for 45 years, you would have $127,681.80. If you compounded at 9 percent that 4k would become $193,309.15. But if you only make 4 percent, it only becomes 23,364.70 over the same period of time.

Go to your local Schwabb, ETrade, Fidelity or other office. They will all give you pretty much the same boilerplate but accurate advice. Save now, live better later.

 

[bowtiejunkie]

Outside of debt pay down: open a Roth IRA, invest in Vanguard 500 Index Fund Investor Shares (ticker VFINX) or Vanguard Wellesley Income Fund Investor Shares (VWINX). The latter doesn't have the up side as 500 Index, but the downside protection is great. You can open up a Scottrade/Charles Schwab/Fidelity account to trade individual stocks (you can also buy into mutual funds as well, along with many other investment types). I use Scottrade. Some of this depends on your risk profile (can you accept wild swings in values with potential for large gains as well as potential for large losses or do you want steady slow growth of value?).

You can also get a professional money manager and they'll direct your portfolio based on your goals and risk profile.

I feel it's good to spread the money around. Get it working in different types of investment vehicles. Then, when you retire, you have different pools of money to pull from. I do 401(k), employee stock purchase plan through work (buy my employer's stock at a discounted price), Roth IRA, individual stocks through Scottrade account. I also do a DRIP (dividend reinvestment program), which is basically buying stock direct from a publically traded company and reinvesting the dividends.

Plenty of guys and gals on here have way more coin then I'll ever have, so you may want to ask them how they made their money. My advice is from an average investor point of view with moderate risk profile and is both committed and consistent with investing. I keep it simple and only invest in things I understand. If you're not going to hire a money manager, you'll have to figure out what works for you. You have to jump in if you're ever going to have a chance of making money investing. Some of this has a learning curve. Know when to buy, when not to buy. Buy what makes you sleep well at night. Pick stocks from different industries. Many ways to make money. Buy stock in solid companies. When the market goes down, keep buying provided the company is still performing and it's just the overall market weighing down the stock price. Start NOW. The time value of money only works if you're investing. My $0.02.

 

[RiverDave]

If you have a 401K, max that out for the year.
If you have a roth, throw some in there.
If you have neither, set up a roth and put it in there

A 4k windfall is going to buy one hell of a rental... [emoji15]

4K isn't going to make you much of a return like mentioned.

Basically the thought with paying off dept is credit cards are costing you 9-12% interest on average with good credit. There is no way to make that investing safely.

I'm not sure I would throw it at a car that's costing you 2% but that's just me.

I recently looked at the day trading program but honestly unless you have a ton of free time and love getting up early you can loose more than you make. You can suceed but it seems like a grind and high stress program.

Maybe use that $$ to pick up a couple yard cars at auction that you could then flip? If you buy a clean lowish mileahge toyota/honda for cheap you can make better fast $$$ with 4K than with a 401K or mutual fund.

As boring as it sounds, I'd pay off debt first Andrew. But I totally get not wanting to do it.

Both the posts above resonate with me. Especially Trickle's.. Maybe put 2K in some tax free investment, and then go down and flip some cheap ass cars and see how ya do! I know a lot of guys that do it, from small ticket items, to bazillion dollar shit, and if you have any kind of skills at knowing values, you can easily put some cash in your pocket and start growing it quickly.

RD

 

[milkmoney]

I would give the 4k to my mother and then when I need 20k, it jus shows up, I don't know how she makes that happen in a month or two. But I ain't complaining [emoji4] [emoji202]

Like said invest or pay off or down bills

 

[HOOTER SLED-]

Being debt free ain't all that it's cracked up to be. Unless you make a shitload of money and can just pay cash for everything.

 

[LargeOrangeFont]

Being debt free ain't all that it's cracked up to be. Unless you make a shitload of money and can just pay cash for everything.

How so? It is pretty nice not being encumbered with a hefty recurring monthly burn.

Not directing this at you, but the concept of "saving up" for something and buying it is largely gone from our society.

 

[wsuwrhr]

Since we need someone to replace Steve, this is a great idea!!

Replace.

Noted.

 

[HOOTER SLED-]

How so? It is pretty nice not being encumbered with a hefty recurring monthly burn.

Not directing this at you, but the concept of "saving up" for something and buying it is largely gone from our society.

Sure you're not throwing money away in interest.....but having a lil credit to use becomes handy.