| About to receive a large settlement. What to do with the $$? |
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skitt1234
New Member
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Joined: 04 Feb 2011
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| About to receive a large settlement. What to do with the $$? |
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I have always been broke... living paycheck to paycheck... but I am about to get a $150,000 settlement. This means that I'll be debt free with about $130,000 left. I want this monry to last. What is the best thing for me to do? I know nothing about the regular investing stuff... stocks, bonds, etc... besides, isn't 1 hundred grand not enough really to invest to make me any significant amount of money? I don't know...
Should I start a small business, maybe? What do you think?
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Fri Feb 04, 2011 11:44 pm |
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oldguy
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Location: arizona
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quote:
I have always been broke... living paycheck to paycheck... but I am about to get a $150,000 settlement. This means that I'll be debt free with about $130,000 left.
It depends partly on your place in life - young, old - employed, unemployed. A long life potential - or you're age 70 on SS?
The most common way to fail is to break up the settlement and scatter it by paying off bills, debt, getting a newer car, etc. The average lottery winner (who has never handled money) will be broke in 7 yrs.
First, I would avoid splitting off $20,000. Second, I would avoid starting a business, the urban legend is that you need a business to become wealthy - in real life 85% of business start-ups fail and leave the owner with huge debt.
I would invest the $150,000 in a Target Fund at one of the two major no-load fund companies (Vanguard or Fidelity). Historically, $150k grows to $1,200,000 in 20 yrs, $3,400,000 in 30 yrs, $9,800,000 in 40 yrs. So it's a matter of age and how long you want to wait.
But remember, if you peel off $25k or $50k, it really cuts into the $1,200,000.
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Sat Feb 05, 2011 12:31 am |
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skitt1234
New Member
Cash: $ 0.70
Posts: 3
Joined: 04 Feb 2011
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I'm 40 years old and unemployed. Haven't been able to find work. So knowing this, how would you recommend I start growing it?
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Sat Feb 05, 2011 3:32 am |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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I wonder what the OP did 7 years ago?
If he put that $150k into the SP%)) Index Fund he would have $341k today. 
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Thu May 10, 2018 2:40 pm |
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