Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Help Needed... Too Much Money :D
Old 06-20-2008, 12:28 AM   #1
Confused about dryer sheets
 
Join Date: Jun 2008
Posts: 3
Help Needed... Too Much Money :D

Hello everyone

I hope Im in the right area.

I am going to be recieving a fair amount of money and I have no idea what to do with it!!

I was going to see a financial adviser but since looking at the fees Im not sure the amount of money I have come by really warrents the fees I would need to pay for their advice!

I currently have bills that are over half the amount I am recieving.. Would it be best to pay off the bills and then invest the rest of the money?

If I invest without paying off my debts I want to be able to use the interest earnt to go on holidays and go towards paying debts etc. But if the funds are placed in a term deposit at 8.40% over 2 years I will only have earnt $4100.

Is there a better way to invest the funds? Or is there something else I should do that I havnt thought of?

Im so scatter brain with ideas Id really like anyones opinon...

Thanks and sorry if this is in the wrong area...

Sonia
__________________

__________________
bobchic is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-20-2008, 02:16 AM   #2
Recycles dryer sheets
 
Join Date: Oct 2005
Posts: 325
Hi and welcome. So you are getting like around $25,000?

Simple answer.

1. Pay off your debts.
2. Go on "holiday"
3. Invest the rest in diversified Index funds (no financial advisor).

Which index funds will depend on a lot of factors, including your age, country that you live in, etc.
__________________

__________________
CybrMike is offline   Reply With Quote
Old 06-20-2008, 08:03 AM   #3
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
And where do you get 8.4%?
__________________
73ss454 is offline   Reply With Quote
Old 06-20-2008, 08:11 AM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,116
Quote:
Originally Posted by 73ss454 View Post
And where do you get 8.4%?
From bobchic's profile:

State - Australia
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-20-2008, 08:26 AM   #5
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,905
Bobchic, I would suggest reading some books on investing and developing an asset allocation and investment plan.

Here is a link to a list of some investment books recommended by the diehards message board:

Diehards book list

I have read many of the books on that list, and have found them to be very informative.

Hope this helps!
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 06-20-2008, 09:26 AM   #6
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Among other things, you need to determine your current situation and your longer-term goals with whatever is left.

That could mean using some of it to pay off debts and/or build an emergency fund, and investing the rest for a longer-term goal -- whether that goal be to buy a car (with cash) at some point in the future, a down payment on a home, retirement or something else. Without knowledge of things like age, marital status and timeframe for longer-term goals, it's really hard to say anything specific.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 06-20-2008, 09:42 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
6 months living expenses at 8.4%

Leave $1000 for doing somthing "fun'........

The rest goes to retiring debt..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 06-20-2008, 01:56 PM   #8
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Quote:
Originally Posted by REWahoo View Post
From bobchic's profile:

State - Australia
Gottcha!
__________________
73ss454 is offline   Reply With Quote
Old 06-22-2008, 05:47 PM   #9
Confused about dryer sheets
 
Join Date: Jun 2008
Posts: 3
Thanks for the replys

I am 23yrs old living by myself (with the very real posibility of being married in the next year or so)

Right now I want a car and to pay off a smal amount of debt.

In the next 5 years I want to pay for a trip overseas (live and work for a year or more in Europe and America)

And then I want to have the rest for a house deposit (My employer pays 9% toward my super and I contribute through out the year where I can. So Im not too concerned about retirement)

Does this help? I want something that returns high. Is investing a stupid thing to do at the moment? What about buying specific shares?

My debt is managed at the moment so would it be best just to keep paying it as is or pay it off and put the replayment money towards an investment/savings plan?

Thanks again
__________________
bobchic is offline   Reply With Quote
Old 06-22-2008, 07:54 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,018
Quote:
Originally Posted by bobchic View Post
I want something that returns high. Is investing a stupid thing to do at the moment? What about buying specific shares?
We all want something that returns high!

Investing is never a stupid thing to do unless you need the money immediately. Generally speaking, the higher the (potential) reward, the higher the risk. Get to know what your risk tolerance is. At age 23, your long term investments should be biased towards equities to optimize growth, but you have stated you may get married and travel in the medium term, so you need to put money for that into a safe but liquid vehicle, such as CDs or a money market fund.

Quote:
Originally Posted by bobchic View Post
My debt is managed at the moment so would it be best just to keep paying it as is or pay it off and put the replayment money towards an investment/savings plan?
What is the debt for? If it is for a car, or consumer goods, that's "bad debt" and you should pay it off ASAP. If your debt is for investments (e.g. rental property) it is being used to earn you money and is probably tax deductible. That's "good debt". Really rich people never borrow for stuff: they only borrow to make more money.

You used the expression "at the moment" so I wonder if you are British. YMMV about tax deductible nature of investment debt. Everything else stands.
__________________
Meadbh is offline   Reply With Quote
Old 06-22-2008, 08:23 PM   #11
Confused about dryer sheets
 
Join Date: Jun 2008
Posts: 3
haha.. no not british... im as aussie as they come.. lol

yes i guess you would class it as bad debt... but i guess if i pay it off i will just get more bad debt cause im terrible like that.. so if i just keep the one bad debt it will stop anymore.. hopefully..

Im really bad at any money management... hence why I am asking for help

All your ideas and advice are very helpful... thank you so much
__________________
bobchic is offline   Reply With Quote
Old 06-23-2008, 08:37 AM   #12
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 514
Quote:
Originally Posted by Meadbh View Post
You used the expression "at the moment" so I wonder if you are British.

Is "at the moment" a British thing? If so, I never knew that. It's quite common here in Canada. I thought it was something said pretty much everywhere.
__________________
kombat is offline   Reply With Quote
Old 06-26-2008, 06:19 PM   #13
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,905
Quote:
Originally Posted by kombat View Post
Is "at the moment" a British thing? If so, I never knew that. It's quite common here in Canada. I thought it was something said pretty much everywhere.
I thought so, too. Apparently not!
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 07-04-2008, 10:05 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
If the debt is at a lower interest rate than the 8.4% interest you can get, and assuming the tax treatment is the same for both (pay taxes on the interest, deduct debt interest paid), then it is "good" debt and you make money by saving your money at 8.4%. Otherwise, if the debt is at a higher interest rate or is not tax deductable, then it is "bad" debt and you will make more by paying off the debt than you will by saving the money at 8.4%. Almost always paying off the debt is a good move.

I assume the Australian market is down along with most of the world. It's not a bad time to get into mutual funds if you won't need the money for at least two and maybe more years. You may have to put up with losses initially still, who knows, but prices are down substantially from last year's peaks.

If you may need the money in less than two years I'd go with something like a CD or money market fund at your 8.4%.
__________________
Animorph is offline   Reply With Quote
Old 07-15-2008, 12:04 PM   #15
Confused about dryer sheets
 
Join Date: Jul 2008
Posts: 1
if you get an inheritance money and you owe backchild support what happens?will they take it out of an in hertance money?evenif the children are all grown?
__________________

__________________
birdland1950 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Secret Money. Do you hide money from your spouse? Enuff2Eat FIRE and Money 72 07-08-2008 04:13 AM
advice needed ironman FIRE and Money 4 01-28-2007 09:35 PM
Money we've made versus money we have kept laurence FIRE and Money 27 07-14-2006 10:44 AM
Changes needed after ER? getoutearly FIRE and Money 3 02-19-2006 09:49 AM
How long will money last? Money Mag earlyout FIRE and Money 21 10-29-2003 03:15 PM

 

 
All times are GMT -6. The time now is 05:56 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.