Do not invest with a bank! They are going to charge you too much in fees and most likely won't have as diverse of a selection of investment choices.
Do a search on How to Find a Financial Planner (or Financial Advisor.) This will give you some good tips on what to look for and what to avoid.
Ask a lot of questions. It's ok to ask how are they making their money - are they getting paid on a commission then you might want to be wary of what they are trying to sell you.
If they are trying to sell you something you don't understand then don't invest in it. You probably want to stay away from insurance or annuity investments.
Fidelity and Vanguard both have a nice selection of funds and Vanguard tends to charge lower fees. (No they are not all the same.) Fees are something that can really add up over a lifetime of investing.
You can talk to an advisor over the phone and figure out your savings goals and tolerance for risk. You can pay a fee and work with one of their advisors to manage your account for you.
If I were in your shoes I would park the money in a bank account, develop a relationship with a financial adviser in that bank and find out what they recommend...
Don't rush into whatever they suggest but if somehow you can put this money in whole or in part into a tax sheltered account then do it...you can make investments from there.
In the mean time start learning about investing money...the only real person who has your best interests in mind is YOURSELF. Don't shovel the money into anyone's hands and say "make me rich". Unless you can evaluate their advice then you don't know whether you are being taken advantage of.
Read books on the subject...you have a nest egg that will stand you well in later life. You have the right idea...I'm impressed with your attitude at your age....there is no rush...learn about mutual funds...I am Canadian but Vanguard sounds like a good company to start with. Educate yourself about them...like I said earlier...try to put the money into a tax-sheltered account....It will save you a lot in the long run.
good luck...you have a good head on your shoulders...educate yourself in investments...it becomes a nice paying hobby :)
I agree with Hobble... the only thing supporting the stock market right now is all the money the Fed is dumping into the biggest banks to prop them up... we don't have an economy based on production of goods anymore.
Everyone I've been reading is expecting a MAJOR correction in a couple of months... like maybe March.
Don't put your money in any of the big banks... credit unions instead... that will preserve the number of your dollars.
Have some CASH hidden in your home in case of bank holidays.
Buy yourself some gold bullion (1 ounce rounds) and silver bullion (1, 5 and maybe 10 ounce) as a way to preserve the value of your money.
If the currency and stock market crash, you will be able to go buy some income-producing real estate and have that making you money.
First, you need to find out if you need to pay taxes on the money - since you didn't mention how you came into the money.
Second, you need to look into finding out more about liability insurance, and Living Trusts, or other ways of sheltering your money from people who may suddenly decide that you are a good target for a lawsuit. (a little paranoid maybe, but I think it may be better to be paranoid and protected, than a walking target. You decide for yourself obviously.)
My friend has about twice as much as you do, and a similar situation (in some ways). He showed me his statement, and told me how much he is paying for advice from the bank. It was about 1% annual fee - which isn't especially high. But the advice wasn't really good. And this is standard Big Bank "paid advisor" advice.
Since you don't need the money, do what you suggested, and put all of it into short term CD's - while you learn about money and investing. It may take 6 months to a year to get some of the basics understood. (By this I mean that you need to learn to be your own financial advisor, so that you know enough to interview people that you are eventually going to pay to be your Future financial advisor.)
Good luck.
Most all Financial Advisers, Brokers and mutual
fund companies are trustworthy. To be an aggresive
investor, you must be able to withstand market risk.
May I suggest the following mutual funds for you.
All from Vanguard. (VDIGX) (VASVX) (VWELX)
Call 800 662 7447 and talk to a company rep.
Yes it matters, because the charges and fees are
important and can make a big difference in the
final outcome.
A major stock market correction is upon us, so I would not invest in equities at this time. You might be inclined to sit on cash at the moment - there is hardly any inflation currently except in some assets like real estate and stock market equities.
You can only trust yourself 100%.
Read all you can and do it yourself. Or start your own business, buying low and selling high. Either way odds are you'll end up making more money than giving it to a bank.
I'm 24 and recently came into 185,000 dollars. I have no debt and live within means. I plan on keeping 35k in a savings account or some low risk short yet cd invade of emergency. Investing 25k for 3-5yrs and 125k long term for retirement. I'm young and single with no real need for the money, so I can afford to be aggressive. But who do I trust to invest the money a average bank? Merrill lynch? Does it even really matter or are all the mutual funds pretty much the same?