what to do with not-a-lot of savings (inherit, crying, retirees)
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Haha. I was thinking of doing something like this. I mean, just to experiment with how a person even does it.
I actually find money to be a combination of stressful and boring. It's a bad combo when it comes to the concept of investing. LOL. But I thought maybe I'd just buy a little something fairly safe from somewhere very mainstream that is low cost and could be lost without any great damage done. Just as an experiment.
(Just to resolve an issue previously raised, I am not saying anything about my financial situation being "somebody else's fault". My financial situation is perfectly fine.)
My son has played around on some app or website or something that let's you learn some beginner investing skills but with pretend money. Maybe I'll ask him about that. Anybody know of such a thing?
My situation is my own fault. I wanted to get married, and the result was being broke, in debt, and living paycheck to paycheck most my life, so losing money doesn't scare me as much as it might some others. I survived, paid off the mess my ex left me in (including the IRS--they don't scare me!), raised my daughter with everything she needed without receiving child support and got her through college. Bought a condo in my 50s without having money and will pay it off early.
I mean, I don't WANT to lose the bit I now have but I do have a sufficient pension, and in three years I'll take Social Security. Plus, I can work if I want to. Right now I am in the personal caregiving situation, but my employer won't let me go. They said they hope that I will continue to work with them, virtually or otherwise, when this all shakes out. My mother died last year, and we sold her house last year and split the money between six siblings and five grandchildren, so I ended up with close to $60K.
The websites first ask what your goals are, and that was a tough one for me. I don't really HAVE any financial goals. But then I thought of one! My daughter is thinking of getting married in 2024, and while she says they don't want a big wedding, just family, I would like to be able to give her something toward a down payment on a home of her own. She has traveled around the world and gone back to school twice and will get her PhD this spring, so while she's been self-supporting and does save, I'm sure she could use the help when she buys her first home. So there's my goal.
I am keeping some cash in the credit union account that pays a whopping .25 because at some point in the future, I will need another vehicle. I'm keeping the 2010 Corolla with the 157K miles on it going as long as possible, though, just to see how long it will last.
You cant separate your money not losing value from investing …over most of the last 40 years cash instruments have lost value after inflation and taxes and you haven’t bet on a thing.
Yes. Not trying to separate it. Trying to figure it out without spending my precious remaining days thinking about it overmuch.
If you are able to put the money aside, I would absolutely contribute to a Roth.
Where to put it depends on your tolerance for risk...but since it has to be there for 5 years (I assume that it your plan - to not withdraw it early) I would tend to have a higher percentage of equities. I have a good FXAIX position in my Roth, it has done well. I am considering FBGRX for my next purchase.
Thank you! I will look them up.
No, I don't anticipate needing that money for five years, even longer. I am not yet sure if I will make any earned income this year, but I might, and then I could contribute for 2022, as well.
My situation is my own fault. I wanted to get married, and the result was being broke, in debt, and living paycheck to paycheck most my life, so losing money doesn't scare me as much as it might some others. I survived, paid off the mess my ex left me in (including the IRS--they don't scare me!), raised my daughter with everything she needed without receiving child support and got her through college. Bought a condo in my 50s without having money and will pay it off early.
I mean, I don't WANT to lose the bit I now have but I do have a sufficient pension, and in three years I'll take Social Security. Plus, I can work if I want to. Right now I am in the personal caregiving situation, but my employer won't let me go. They said they hope that I will continue to work with them, virtually or otherwise, when this all shakes out. My mother died last year, and we sold her house last year and split the money between six siblings and five grandchildren, so I ended up with close to $60K.
The websites first ask what your goals are, and that was a tough one for me. I don't really HAVE any financial goals. But then I thought of one! My daughter is thinking of getting married in 2024, and while she says they don't want a big wedding, just family, I would like to be able to give her something toward a down payment on a home of her own. She has traveled around the world and gone back to school twice and will get her PhD this spring, so while she's been self-supporting and does save, I'm sure she could use the help when she buys her first home. So there's my goal.
I am keeping some cash in the credit union account that pays a whopping .25 because at some point in the future, I will need another vehicle. I'm keeping the 2010 Corolla with the 157K miles on it going as long as possible, though, just to see how long it will last.
No, I don't anticipate needing that money for five years, even longer. I am not yet sure if I will make any earned income this year, but I might, and then I could contribute for 2022, as well.
Keep in mind fbgrx is an extremely volatile fund and by itself is not a diversified investment.
Fbgrx is down 15% ytd.
S&P down 7%
Something like the permanent portfolio is down just 3-1/2 %
You cant possibly know what is right for you doing it on your own with out reading ,learning and experimenting.
We all have different needs , pucker factor and reasons for what we do .
Simple answers to complex questions are usually the wrong answers
I agree with that last sentence. The reason I opened the TD Ameritrade account is because I read on one of the "idiot" sites that they are good for beginners because they have the "idiot" courses to read and then they quiz you at the end. It really is more complicated than "just deposit your money HERE", even if you are a simple/beginner investor.
I decided not to be in any hurry. At the end of the night, I'd pour myself a glass of wine, sit down, and read a section of the basic course and then let it soak into my brain overnight. The information, I meant, not the wine, although that too, because then I sleep better. But this way I learned a little at a time.
I also bounced around to Bogleheads and Investopedia to see if they said the same or anything different than what I just read on TD.
Keep in mind fbgrx is an extremely volatile fund and by itself is not a diversified investment.
Fbgrx is down 15% ytd.
S&P down 7%
Something like the permanent portfolio is down just 3-1/2 %
OK. I do understand that right now the market is dropping. That's how it goes, right? Up and down. I'm not going to be putting any money in there that I need to pay the gas bill next week.
Keep in mind fbgrx is an extremely volatile fund and by itself is not a diversified investment.
I was not suggesting it as a stand alone. It would be just ONE (small) part of my ROTH. If I was just starting my ROTH, I would most certainly split the contributions between 2 or 3 different funds.
Here is an article that MQ might want to read, just some suggestions on fund choices.
I was not suggesting it as a stand alone. It would be just ONE (small) part of my ROTH. If I was just starting my ROTH, I would most certainly split the contributions between 2 or 3 different funds.
Here is an article that MQ might want to read, just some suggestions on fund choices.
Yep ,I just wanted to make sure MQ knew by itself it is extremely volatile
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