Need lots of advice on investing a couple grand

Cappuccino OC

Hi everyone,

The grand is not mine but my mothers. She just went through a nasty divorce. She left her DF Pedophile husband.

She really left him everything. She wanted out. He kept the two business & a home. She only received the profits from selling their 2nd home. I gues it's better than nothing.

Anyways, she needs advice on how to invest, safely, about 60,000. She would like to buy a home in about 4 years. She just moved to a new town so she's starting life all over again at 51. She's a pretty smart, funny & hard working lady. I know she'll do real well. She's already working and rented a home in the best place in her new city so my little brother can go to a 'good' school. She plans like I said to buy a home but not until my brother finishes High School in 4 years. She'll also move & retire in another state that's why she's not buying a home now.

Any advice on CD's, interest rates, money market accounts will really help.

Help,

Cappuccino OC

gsx1138

How about investing it into the Watchtower Society. With that type of donation I'm sure Jehovah will bless you.

Seriously though, I wish I knew more about investing. But with the way large corp. are screwing everyone I'd be very leary of doing any investing right now anyway.

Southland

You may want to consider an annuity. They go for about 8% to 10% interest.

a) Guaranteed safe principal and interest

b) Pays no taxes

c) Avoids probate or estate-advantaged

d) Flexible I can get money when I need it if an emergency

e) High interest/high return (remember equity linked)

f) Protection against interest fluctuations

g) No upfront fees

h) Easy to purchase

i) Retirement protection

Let me know if you want more information.

Cappuccino OC

Do all banks sell them? Are they specifically for retirement? It sounds good. With interest rates being so low on savings 8 - 10 % sounds really good.

Cappuccino OC

gravedancer

Be very careful of annuities....thats all I I have to say.

http://www.jameshoyer.com/problem_annuities.html

Do yourself and your Mom a favor and find a professional who will provide a balanced portfolio that is diversified in NO LOAD funds.

metatron

How much risk can you stomach?

Low risk - CD's, T-bills, Ginnie Mae funds

Higher risk(better returns) - collateral mortgage funds,
senior debt funds, financially sound reits

High risk - selected tech stocks and my favorite
------ silver (mining and metal) actually I don't see
much risk on silver, downside - but patience will be called
for waiting for its eventual rise.

metatron

You Know

Any advice on CD's

Sure, click here>

http://www.amazon.com/exec/obidos/ASIN/B0000636UN/globalphonera-20/104-0116337-5320765

Too, if she needs a car this looks like a good buy. Chick here> http://fallstreet.com/1929/1929.htm

/ You Know

Edited by - You Know on 6 July 2002 9:6:26

Kingpawn

The stock market took an upswing recently but I'm not sure I'd see it as an ongoing trend. You can get big gains or big losses in the market, depending on how aggressively you invest. "Aggressive growth" mutual funds are the riskiest of funds; "money market" funds are safer with lower rates of return. There are others in between.

I have to agree with those who say seek a professional's advice. And for heaven's sake don't act on "hot tips" in Internet chat rooms and the like! There was a scandal a year or so back where some 15 year old was using his dad's online account, buying stocks, then creating myriads of identities in chat rooms. He'd hype the stocks he bought, people bought, the price went up, he sold, and made out well. Even got to keep lots of it when caught.

My 401(k)'s making money this year because I got out of the stock market entirely.

Something else to consider: your mother's age and when she plans to retire. Generally speaking, the shorter the time before planning to retire, the more conservative your investment choices should be. Now's not the time to gamble if she's going to need a steady income in five years or so.

Tax laws can make it nasty sometimes. You've got 60 days or so to roll over money in some kind of account so time pressure can goad you into unwise choices sometimes. Worst comes to worst, an IRA or CD might be a good choice if time's short, but I am not an investment professional.

Good luck.

trevor

Cappuccino OC

Put the money in an interest paying deposit account for the next 6 month while you look into the matter. Right now is not the time to be making any kind of investment. The opportunities will be there next year.

Southland

Gravedancer: Thanks for your link. I don't know a whole lot about annuities other than that we sell them at work. They are supposed to be great if you have money to invest. I am pretty sure what we sell are not variable annuities, the subject of concern in your link. I'll try to find out some more information and post it here.

Need lots of advice on investing a couple grand

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