What to do with extra 20k?

[zerogravity]

I am 47 and have an extra 20k from a business that I closed. I won't be needing liquidity for a long while (15 yrs) I am looking for some advice on where to park it? I'd like to make a decent return and if it can be tax free income that would be even better.

 

[Katiek]

Personally, I'd look at my overall asset allocation and see if the percentages are what I want. if not, I'd use the extra money to help get the percentages where i want them. If my percentages were where I wanted, I'd invest the money in a balanced fund with my desired allocations.

But do you have debt outstanding? You may make the best return paying down debt.

 

[MBAustin]

Katiek's suggestions are good. If you are still looking for a place to park it at reasonably low risk with tax-free income, take a look at VMLUX (Vanguard limited term municipal bond fund). It's where I park our "cash" reserves to drawdown for spending when needed.

 

[jim584672]

Multi level marketing. 20k in soap and stuff.

(That wasn't serious.)

 

[Ian S]

First pay off high interest loans like a credit card. If you don't need it for 15 years, I'd make sure to fully fund a Roth IRA. I'd start with cash then gradually buy into something like SPY, a good bond fund like MWTRX, and a healthcare sector ETF so after a year have a mix of all four assets that you feel comfortable with then rebalance every year or so. The key is to build up a Roth, IMHO. I wish I had more Roth than traditional IRA but may look into some conversion over the next few years.

 

[Jay_Gatsby]

I'm surprised no one has said "give it to me"

 

[target2019]

1. Give it to me and I'll help you make money on that, or
2. Put it all in Vanguard US Stock Market ETF

 

[unno2002]

[FONT=&quot]For thought, consider the other side of the coin… instead of putting it somewhere to “make” money, do you have some aspect of your life where $20k now would help you avoid spending money over the next 15 years. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Sample thoughts… Extensive home insulation upgrade to avoid the out of pocket costs of rising energy prices. Depending on your climate, sun, electrical cost, etc., photovoltaic cells to eliminate some portion of your electrical bill. [/FONT]

 

[cooch96]

Is "hookers and blow" an inappropriate suggestion?

That's what I'd do. Well, maybe not. I'd have to check with DW first.

 

[zerogravity]

OP here. This is why I finally joined up to this forum! Priceless advice! You guys really have me thinking now. I appreciate the serious answers and am having a good laugh over the MLM idea! I remember when I was not so far out of college and got invited to a "special investing group". Soap and water purification filters and a chance for a piece of the American Dream!
I like the last idea especially- pay off something now to avoid paying in the future. Hmmm. Fuel efficient car? Life insurance policy? Solar panels? Wind?
Or a mental health investment? Like a personal masseuse or a cruise around the world? Intangible benefits are tax free.,.

 

[eroscott]

OP here. <snip> Hmmm. Fuel efficient car? <snip>

2012 or 2013 Chevrolet Volt from CarMax if you have a place at home to charge up. Even 120v plug would do for a 10hr overnight charge *if* you drained the 40 mile battery by the end of the day.