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What do I do with 20,000.00?

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What do I do with 20,000.00?  Reply with quote  

Hello All:

Wonder if anyone can help me out. I am debt free. I live rent/mortgage free and I dont have a need for a car (use the company's). I make between 60,000-80,000 a year. I have been in my current postion for 1yr and change. The company has never laid off in 40yrs. A healthcare related business pretty stable. I have saved 20,000 so far this yr but have been a bit nervous about doing anything with it due to the economy (it just in a regular savings account Sad ). I have 401k at work. I want to be able to access about 5,000 of that in case of emergency. I will probably be able to save another 20,000 by years end. What do I do?
Post Fri Jul 03, 2009 5:43 pm
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Hi there! Looks like you are in a really good financial shape, keep up the good work!!

My suggestion is to first set aside an emergency fund for rainy days - typically 6 months of expenses.

The rest of the spare cash you could invest in stocks or low cost index funds. I think the best time to invest is now amidst the financial crisis. Buy now and hold it there until the economy recovers and prices go up again.

Be greedy when others are fearful and be fearful when others are greedy - that's what Warren Buffet says!
Post Sat Jul 04, 2009 3:52 pm
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I would make sure first of all that your emergency fund is 3-6 months of your monthly income and put that into a money market account where you can get around 1.8% or better that has the ability for you to write checks. Then with the additional cash I would put it into index funds that are mildly aggressive.
Post Mon Jul 06, 2009 2:21 pm
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I would travel around the world!
Post Tue Jul 21, 2009 2:30 pm
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As others have said set aside some money for a rainy day then in your situation I would work out what I want to learn about.

If you like something solid then you may want to invest in property, or as avont78 there are some great value stocks out there.

However as with anything you need to know what you are doing - I know I'm stating the obvious Very Happy

There is more to the stock market than just buying low and selling when the shares get higher for example, but a lot of share newbies get burnt because that is all they operate on. There are some great books out there, and of courses too. Most of the online share broker firms such as OptionsXpress and Thinkorswim have online trading courses and virtual trading so you can try with virtual money before using your own.

Let us know what you decide to go for...

Post Sat Jul 25, 2009 7:06 am
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Cherryl Hanson-Simpson
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Shop around and see what you can invest in. But don't just do any type of investment and then leave it in the hands of the portfolio manager. Invest into something you are passionate about and learn everything there is about that investment. Advisors are saying that now is the best time to invest so take their advice and make that money work for you instead of having it in a saving account. Very Happy

Post Sun Jul 26, 2009 10:00 pm
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Save some for emergencies and sent some to the bank for savings.
Post Sun Aug 02, 2009 9:06 pm
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I think you should invest it in fixed annuities which are really safe. I think it's government insured and free withdrawals. Somebody I know is a financial advisor and she has a site under construction (I'm not affiliated with it at all, in case you're wondering). The site is
She told me she wants to switch the name to a different website soon.
So all the best! Very Happy
Post Mon Aug 03, 2009 8:38 pm
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Odd website. It seems to be in Latin. Since I can't figure it out, I think it's best deleted.

Post Tue Aug 04, 2009 12:47 am
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Wow, that's very good for you. I'm sure it feels good to ask "What should I do with $20,000" Here's what you do. Go to Vegas and gamble like it's no tomorrow!

Nah. Nah. I'm just kidding. Save some for emergencies (you never know when you'll need it) and put the rest in your savings. Other than that, you seem to be in very good shape for the economy today!
Post Fri Aug 14, 2009 8:32 pm
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