I have $3,000. Save? Invest? Buy some land on the moon?

[Lorn]

What do you guys suggest? I just won $3,000 from a nation-wide art contest and I'm looking for some advice on what I should do with it. I don't want to blow it...

Any good advice?

 

[Kipper]

Invest, or pay off debt it you have it.

If you don't have something that you are ridiculously itching for and have been for a long time, save it. Don't spend. That's the biggest mistake people make with unexpected sums of money - just blow them.

 

[OverVolt]

If you don't already have a little cash saved up, i would save it. Not sure on investing, nothing right now that i can think of that would be a good investment besides real-estate in some areas.

My vote goes for save.

 

[Evadman]

That happens to be the max amount you can put into a Roth IRA. Conicidence? I think not!

 

[aplefka]

Invest it. Or at least some of it. That's the best thing you can do. Say you put 500 into bonds. 10 years down the road that'll be a nice little cushion to come back on. In fact, I don't know if all bonds are just doublers, but you may be able to make even more than double the 500. If you REALLY don't need it, I'd suggest putting 2k of it into bonds, simply because that'll be at least 4k in 10 years.

 

[seanws]

i like the moon idea.

 

[Lorn]

Thanks so far, guys. For the record I'm 18 years old... I don't have any debt so far.

 

[NikPreviousAcct]

Give it to me.

 

[NikPreviousAcct]

Originally posted by: NOLOVE
Thanks so far, guys. For the record I'm 18 years old... I don't have any debt so far.

Secure Credit Card. Start building credit now.

'nuff said.

 

[Malak]

Originally posted by: NOLOVE
What do you guys suggest? I just won $3,000 from a nation-wide art contest and I'm looking for some advice on what I should do with it. I don't want to blow it...

Any good advice?

300 $10 hookers.

 

[Evadman]

If you put it into a mutual fund or play the stock market, and earned 10% back per year (which a blind monkey who types with his feet could do) you will end up with just over $250k when you retire. If you were a dumb monkey, and only earned 8% a year you would still end up with over a 100k.

 

[Lorn]

Originally posted by: Evadman
If you put it into a mutual fund or play the stock market, and earned 10% back per year (which a blind monkey who types with his feet could do) you will end up with just over $250k when you retire. If you were a dumb monkey, and only earned 5% a year you would still end up with over a 100k.

That sounds... most excellent. Any specific steps I should take?

 

[imported_Mike]

:camera:'s of art?

 

[Evadman]

Originally posted by: NOLOVE

Originally posted by: Evadman
If you put it into a mutual fund or play the stock market, and earned 10% back per year (which a blind monkey who types with his feet could do) you will end up with just over $250k when you retire. If you were a dumb monkey, and only earned 5% a year you would still end up with over a 100k.

That sounds... most excellent. Any specific steps I should take?

Step 1: Learn about stock, mutual funds, IRA's, Roth IRA, 401k's and the power of compund interest.
Step 2: Make an informed decision
Step 3: Retire


I recommend Fool.com for information. If you are going to jump into something with no clue, then all I can say is your $3k will quickly become my 3k, and my 401k will grow by that much . Seriously, if you want decent return with little work, check out a bunch of mutual funds that have no associated fees (no-load) and toss your money into a few, and don't touch it unless you have reason too. Spiders work as well, and are probably a better choice based on your age. Personaly, I would go with the equivelent to spiders on the Nasdaq which I forget the name of because I suck.

 

[aplefka]

You know, on second thought, if you didn't invest, you could buy one of the these. And trust me, with one of those, you could do a different kind of art; the kind of art that I like to do (and no, not pr0n movies).

 

[brtspears2]

How about become a millionare....Iraqi millionare that is. I guess the idea is that if their economy picks up, you can be up big time.
http://www.dinarmerchant.com/

 

[OS]

Originally posted by: Evadman
If you put it into a mutual fund or play the stock market, and earned 10% back per year (which a blind monkey who types with his feet could do) you will end up with just over $250k when you retire. If you were a dumb monkey, and only earned 8% a year you would still end up with over a 100k.

I call BS. I'd like to see anyone who can make a consistent 10% each year, every year, for a couple decades.

 

[imported_Mike]

Originally posted by: brtspears2
How about become a millionare....Iraqi millionare that is. I guess the idea is that if their economy picks up, you can be up big time.
http://www.dinarmerchant.com/

I've thought about this...eventually the value will increase...profit!

 

[Evadman]

Originally posted by: OS
I call BS. I'd like to see anyone who can make a consistent 10% each year, every year, for a couple decades.

The historcal average is 8%. Are you telling me you can not beat average?

<--- has done over 10% every year (except one) since he started in '94. Did ~29 for 2004. Not sure what my average is, but I think it is around 14. well, for a decade. Only 4 more to go.

 

[Martin]

Anyone ever try Forex? It seems as if you can make a lot of money on that....

 

[OS]

Originally posted by: Evadman

Originally posted by: OS
I call BS. I'd like to see anyone who can make a consistent 10% each year, every year, for a couple decades.

The historcal average is 8%. Are you telling me you can not beat average?

<--- has done over 10% every year (except one) since he started in '94. Did ~29 for 2004. Not sure what my average is, but I think it is around 14. well, for a decade. Only 4 more to go.

Dow Jones 100 years

Notice the nice flat parts, some of which last 20+ years?

 

[Skunkwourk]

Originally posted by: CheapArse

Originally posted by: brtspears2
How about become a millionare....Iraqi millionare that is. I guess the idea is that if their economy picks up, you can be up big time.
http://www.dinarmerchant.com/

I've thought about this...eventually the value will increase...profit!

am I missing something, I just cheked XE currency converter and I got 1,000,000.00 IQD = 682.2912 USD. Dinarmerchant is selling 1 million for 950 USD.

 

[OS]

Also I've never seen the historical averages take into account fees, taxes, inflation, etc.

 

[imported_Mike]

Originally posted by: Eghck

Originally posted by: CheapArse

Originally posted by: brtspears2
How about become a millionare....Iraqi millionare that is. I guess the idea is that if their economy picks up, you can be up big time.
http://www.dinarmerchant.com/

I've thought about this...eventually the value will increase...profit!

am I missing something, I just cheked XE currency converter and I got 1,000,000.00 IQD = 682.2912 USD. Dinarmerchant is selling 1 million for 950 USD.

Interesting...their based out of SD, maybe ill give them a call sometime. It says on their website that Bush wants to improve Iraqi economy and supports the dinar....but you can't trust the site.

 

[Evadman]

Originally posted by: OS
Dow Jones 100 years
Notice the nice flat parts, some of which last 20+ years?

Yepperz. But it is all about averages. If the average 3 day return is 0.17%, then that means that you could concievably pull in ~17% a year right? (300/3*0.17) Obviously, it doesn't work like that, but you get the idea. Obviously, you have researched this phenomenon. Besides, moving money around only makes your broker rich, not you.

Originally posted by: OS
Also I've never seen the historical averages take into account fees, taxes, inflation, etc.

I also do not know the historical including inflation. It is probably about 1/2, or 4% above inflation.