What would you do with $20k ?

Discussion in 'Finance, Investing & Economy' started by Dammit!, Sep 22, 2005.

  1. Dolemite

    Dolemite Member+

    Apr 2, 2001
    East Bay, Ca
    buy $20,000 worth of McDonalds gift certificates
     
  2. Ian Lozada

    Ian Lozada Member

    May 29, 2001
    The Pick Four Pool
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    "Well mom, remember my dream of owning a big house on a hill and how I used to wish for a living room with a plaster lion in it from Mexico and how I always wanted a large twenty four seat dining table in a dining room with original oil paintings by Michelangelo and Rembrandt and remember how I always wanted a rotating bed with pink chiffon and zebra stripes and remember how I used to chit chat with dad about always wanting a bathtub shaped like a clam and an office with orange and white stripes and remember how much I wanted an all red billiard room with a giant stuffed camel and how I wanted a disco room with my own disco dancers and a party room with fancy friends and remember how much I wanted a big backyard with Grecian statues, s-shaped hedges and three swimming pools? Well, I got that too."


    ***

    Waiter: "Would monsieur care for another bottle of Chateau Latour?"
    Navin: "Ah yes, but no more 1966. Lets splurge! Bring us some fresh wine! The freshest you've got - this year! No more of this old stuff."
    Waiter: "Oui monsieur."
    Navin: "He doesn't realise he's dealing with sophisticated people here."
     
  3. kebzach

    kebzach Member

    Dec 30, 2000
    Greenfield, WI
    I can't tell you what to do with your money. If it was me, I'd pay down debt like a mother but that's just me. You don't seem to have the debt that I do.
     
  4. Howard Moon

    Howard Moon Red Card

    Sep 27, 2005
    Blow the lot on the good life for a bit. Charlie. Booze and Birds. Sorted.
     
  5. speedcake

    speedcake Member

    Dec 2, 1999
    Tampa
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
  6. Caliguy

    Caliguy New Member

    Apr 27, 2005
    In your pc
    Jerk
     
  7. nicephoras

    nicephoras A very stable genius

    Fucklechester Rangers
    Jul 22, 2001
    Eastern Seaboard of Yo! Semite
    I actually found myself in the same situation recently. Put most of it into Index Funds and dollar cost averaged it.
     
  8. billyireland

    billyireland Member+

    May 4, 2003
    Sydney, Australia
    You knew it was coming...


    What would I do with $20,000? I'd wipe myass with $20,000! Either that, or enter you and your wife into the World series of Poker next year ($10,000 each). :D

    I''m a real glutten for squandering money htough, so if I were you I would probably just treat myself.

    But what the hell is this talk of getting a house for that money? You'd be EXTREMELY lucky to get any house here for under ¢150,000.
     
  9. Dammit!

    Dammit! Member

    Apr 14, 2004
    Mickey Mouse Land
    How has that worked for you?

    And how did you dollar cost average?
     
  10. TheSlipperyOne

    TheSlipperyOne Member+

    Feb 29, 2000
    Denver
    Club:
    Arsenal FC
    If I had $20k I'd invest it in Indonesian Dwarf Rat Futures.
     
  11. fireman451

    fireman451 Member+

    Jun 26, 2002
    The Midwest
    Club:
    --other--

    Nice plan, go with the general markets and layer in your costs.

    I like your approach.
     
  12. nicephoras

    nicephoras A very stable genius

    Fucklechester Rangers
    Jul 22, 2001
    Eastern Seaboard of Yo! Semite
    Given that I was mostly looking for a relatively safe place to park my money with somewhat healthy growth, just fine. Nothing spectacular, but then you're not likely to get that with index funds, which I knew going in.

    You spend the same amount on shares of the fund on, lets say, the 15th of every month, instead of buying certain amount of shares per month.
     
  13. MtMike

    MtMike Member+

    Nov 18, 1999
    the 417
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    The Silicon Valley Housing market. 5 years ago.
     
  14. ASroma90

    ASroma90 New Member

    Oct 21, 2005
    you should have bought google options a year ago, well too late for that, so here is a site for you http://www.willhill.com

    good luck! :p
     
  15. taylor

    taylor Member+

    Jun 9, 2000
    Fav team: FC CARL ZEISS JENA
    Club:
    --other--
    Nat'l Team:
    Germany
    Just want to add my 2 cents and the beggar that is in me would welcome anyone elses 2 cents.

    I am sort of like Dammit,

    I am 26 and am trying to decide what to do with around 35K. This will be retirement money, so a 30 to 40 year horizon. I use to be really familiar with daily trading and all that (back during the bubble, hey, it help avoid some college debt at the time)

    I am considering

    1)sending it all to a college friend who is some sort of money manger/broker
    2)Investing it all in what I believe to be luxury complementary goods (e.g battery technology, Porche)
    3)Trying myself, but I go burned when the bubble bursted and I graduated from college.

    Any pointers are welcome and cyber love is given.
     
  16. Red&Black

    Red&Black Member+

    Aug 30, 2001
    Lot 8
    Club:
    DC United
    Nat'l Team:
    Burkina Faso
    i'd buy a house man. the tax deductions alone will almost surely save you more than you might make off of stocks. the absolute #1 indicator of financial stability is how early one buys a house.
     
  17. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Depends on a lot of factors.
     
  18. Red&Black

    Red&Black Member+

    Aug 30, 2001
    Lot 8
    Club:
    DC United
    Nat'l Team:
    Burkina Faso
    agreed, but personally i'd buy a house before i played the market.
     
  19. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    As I probably would as well. Money aside, owning a home is a much better feeling than renting and doing well in the stock market (I would imagine).
     
  20. taylor

    taylor Member+

    Jun 9, 2000
    Fav team: FC CARL ZEISS JENA
    Club:
    --other--
    Nat'l Team:
    Germany
    Well, I am waiting for a soft landing or a crash. I am starting to think that mutual funds are really the only way to go for now because I just don't have the time necessary to go research this crap.
     
  21. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    I think we're definitely going to see a hard crash in the next year or two.
     
  22. taylor

    taylor Member+

    Jun 9, 2000
    Fav team: FC CARL ZEISS JENA
    Club:
    --other--
    Nat'l Team:
    Germany
    Where do you guys do get your info from? I would like to pick up more info but have found limited places. FT is good for daily stuff, but any sort of web place (I don't care if I have to pay)?
    thanks
    T.
     
  23. Dammit!

    Dammit! Member

    Apr 14, 2004
    Mickey Mouse Land
    Re: the Housing market, I think it depends where you are looking at buying. If you're in South or north Cali, pretty much forget about it. You can't (likely) aford a house anyways. In other areas, it might be worth it.

    I like reading barrons online and it's free.
     
  24. NBlue

    NBlue Member

    Jun 17, 2002
    Orlando, Florida
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    A lot of time has passed since this was origninally posted and I wonder if the original poster would be kind enough to let us know what he did with the funds? Hopefully, he has invested it wisely.

    Also living in the Orlando area and having the same predicament, I have invested about half of it into funding to take my brother-in-law and myself on a trip to Germany in June -- that will be $$ well spent!

    That said, in your situation, I think that the clear right answer is to invest the money as a down payment for a home. We signed a contract on a home in Baldwin park in 4/04 that was finally completed in 7/05 and we've been there since then. It is absolutely shocking to see the growth in our investment as the value of the home has basically doubled since we signed the contract. Though I don't think this rate of return will continue, if you are buying in Downtown Orlando, its difficult to believe your home will do anything but increase in value in the next few years. If you are thinking of investing your $$ now to save up to buy a house I think that is a crazy strategy as (1) you are losing the tax savings of deducting interest expenses (which can be quite significant) and having to pay taxes on any income yoy receive and (2) if you cash out that $$ in a couple years and your cash on hand has increased from 20k to 30k, the house value may well have increased as well -- say (conservatively) from 300k to 400k. You'd actually be in a worse place than you are today.

    I'd strongly recommend using the $$ as a downpayment on a house. There are still tons of good buys out there even though the market is crazy. Good luck!
     
  25. Dammit!

    Dammit! Member

    Apr 14, 2004
    Mickey Mouse Land
    Thanks for asking and for the advice.

    I have a very good rental situation right now thanks to the kindness of a family member, so I'm not buying a house. (I'm basically paying half the rent I should be so long a s I take care of the place good.) Baldwin park is crazy expensive. With my situation, I'd rather wait rather than downgrade and stretch to make mortgage payments.

    So, what I did was, I lent $10k to a family member at 7% interest (they said it was better than paying 7% to the bank) and I have $10k in the market. Over 3 months in the stocks I am up $500, but made many mistakes which will never happen again. It's good practice and I'm enjoying it.

    So, doing ok, not spectacular. Working on perfecting the investing techniques.
     

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