> I recently inherited 100k and expect 250k more. I have no idea what to do with it. Are stocks my best bet?

I recently inherited 100k and expect 250k more. I have no idea what to do with it. Are stocks my best bet?

Posted at: 2014-12-05 
Is it a good time to invest in stock? If so, who should i contact?

If you have any debts (car, student loan, mortgage, credit card, etc.) pay them off first.

Preventing a debt from growing has the same impact to your net worth as investing and making a gain. Even more so because paying off debt is not taxable, while making money is.

Assuming you have money left over after paying off debts, what do you want to do with it?

If you want to use part of it for an emergency fund, there's only one thing to invest in: cash.

If you want to spend it in less than ten years, cash or individual bonds. No bond funds. No stocks.

If you want to hold onto it for more than ten years, stocks.

By all means, STAY AWAY from financial planners. Here's why: In the financial markets over the next 5 to 10 years, returns are going to be relatively low. Stocks are at historic highs. Using the Schiller PE Index, the PE is over 25 - in just about every previous time in history, that has resulted in 10 years of poor stock market returns. Bonds are dangerous because you lose money as interest rates increase, which they will do. A financial planner will take 1% or so of your money every year - if you are getting a 2-1/2% return (that is a projection I saw today in the Wall Street Journal) you will be giving almost half of that to a financial planner in fees.

I suggest opening an account with Vanguard, one of the top mutual fund companies. To start, put all the money into their short term bond index fund. That pays about 1.5%, way better than a CD and you are not obligated to keep it there. Then, once every 3 months, move $15,000 into an INDEX equity fund (Vanguard has several) - I would suggest large cap or their 500 fund. As you do this, spread it over 2-3 stock funds, maybe even one fund with international stock exposure.

The above plan is called "dollar cost averaging." It allows you to escape some of the risk in stocks, because you are putting the money into stocks over months and years, not all at once.

Vanguard has people who will answer your questions for you and give you advice - for free. And be careful of people who tell you (like some of the answers) that a planner can get you 10% or some ridiculous amount like that. Those days are over, now is the time to think dividends and index funds.

Contact three or four Financial Planners and make appointments to visit each one to discuss "an inheritance"...then visit each one and explain that you have inherited $10,000 and expect another $25,000...

The one who treats you with the most respect over $35,000 is the one you can trust to steer you right with $350,000

Stocks/Stock Mutual Funds are absolutely your "best bet", though with $350,000 you may be able to enroll in something like the "Actively-managed" portfolios many brokerages now offer that charge you a quarterly fee based on how much money they have made you (which typically adds up to no more than 1-2% of the annual average balance....a terrific deal if they can reliably average you a 12-15% annual return)...

If ANY of them mention annuities, just thank them for their time and leave! Annuities pay the best commissions to brokers of any investment, so anyone offering them is more interested in preserving THEIR wealth rather than growing yours!

Stocks are a great way to grow money, but it does not work for everyone. I would suggest you put most of the money into safe investments in order to offset inflation, and experiment with a small portion of it. If you wish to invest on your own, find a mentor or follow some consistently successful investors. If you give control to a broker- be very, very careful, and watchful. IF you have the ability, I would recommend self-management. There are three self-made millionaires in my immediate family thanks to wise investing. We have been far more successful than the brokers we originally started with.

You'll be able to instanly acquire an online payday loan as much as $1000 by using this site: http://loans.servermatrix.org I got our payday loan although I have really negative credit standing.

go to Couch Potato Investing (assetbuilders.com)

Diversify and conquer.

If America doesn't go bankrupt, the stock market should be a good place for "part" of your money.

If you need life insurance, buy term. Do not buy Whole life. Don't buy an annuity (they make it sound sooo good. for them, yes. for you, probably not)

Under 50, buy some real estate. Over 50, buy some bonds.

Don't listen to tips from your barber, or anyone (including me) on this website.

Good Luck!

By all means, contact a financial planner. If you don't know one personally, speak to someone at your bank for a referral. Beyond the wisdom of investing you need to seek help in avoiding giving a large portion of your money to the government by way of taxes.

Seek out a good Financial Adviser. One that won't

try to sell you insurance or investing into an annuity.

You can't go wrong by investing it in a low-cost vanguard index fund such as VTSMX.

Is it a good time to invest in stock? If so, who should i contact?