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Okay so I'm a hispanic female, I have 80k in my savings account at a credit union. Where should I put it in? cds/bonds? Don't know much about mutual funds, money market accounts I should steer away from that
The first question you have to ask is: what do YOU want to do with it? Save it? Use it as principal for investing for a bigger role? College expenses?
What you want to do with the money will determine what you should do with it.
In other words, if you're gonna use the money in the next 5 years or so, keep it in CDs and money market accounts.
If you're gonna use it in 5-10 years, keep it in conservative investments usually mutual funds in a taxable account.
If you're gonna use it 10-20 years from now, if it's for college for children, keep it in a college savings program. Or you can put it in more risky fund allocations.
Finally, if you're going ot use it 20+ years from now put it in mutual funds with an appropriate risk profile.
CDs and savings accounts will not keep up with inflation, so don't keep it there if you don't have to. But realize that to get higher returns you have to accept more risk. Anyone who claims otherwise has their own personal goals / agendas or believe the kool-aid they drink.
Since I am planning for a family, if I came into 80k right now, I'd set up a college savings account and buy credits to the university system in WA state. No matter when they enter, they will have those credits to pay towards a degree.
OR, if I felt adventurous, I would use that as downpayment on an investment property and rent it. My wife and I won't have much free time raising a family though, so we'd have to give it some thought.
Okay so I'm a hispanic female, I have 80k in my savings account at a credit union. Where should I put it in? cds/bonds? Don't know much about mutual funds, money market accounts I should steer away from that
You don't have to do anything. How are old you? And what are your finical goals?
if you have student loans pay that off. use the cash for buying house.
Ahhh... I am so tempted to say exactly what to do with some of the money for a female.... Then get a nice fat cat husband... Without prenupt.. And then retire early...
No offense. Reality of life.
CD-s at 1.2% return? With 2.5% inflation rate? Is it some sort of joke?
Mochagirl, why would you tell us you were hispanic? Im just curious on this because it has no bearing on what you should do with your money.
If you have 80k and you need something to do with it you need to ask yourself a few questions.
Do I own a House?
Basically thats the only question.
You should buy a house! As someone who is a firm believer in making yourself financially stable the first thing you need is a foundation, the foundation of a house and if it is paid for or mostly paid for then thats great!
If you want to invest then you need to realistically think about how much time you are willing to put into managing the money. You can invest in Mutual Funds, max out your Roth IRA, but either way you need to tell us how much time you are realistically going to put into this.
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