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malaz
Joined: 06 Jan 2013
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 Posted: Mon Feb 16, 2015 11:35 pm Post subject: How would you invest $10,000 ? |
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I noticed that members in this forum are more interested in finance than your daily expat in Korea so I am interested in hearing some opinions.
How would you invest a $10,000 laying around in your bank account?
Cheers |
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radcon
Joined: 23 May 2011
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| Posted: Mon Feb 16, 2015 11:50 pm Post subject: |
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| I would hand over that wad of cash to my old man, since he is like one of the top brokers in the state. |
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atwood
Joined: 26 Dec 2009
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| Posted: Tue Feb 17, 2015 3:35 am Post subject: |
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| If you're from the U.S. and have a bank account there, you could do far worse than putting the money in Vanguard's Total Stock Market Index, either the mutual fund or ETF version. |
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ricochet
Joined: 04 Sep 2011
Location: carpetbagging...
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| Posted: Tue Feb 17, 2015 5:31 am Post subject: |
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| i'd invest it 1 dollar at a time... |
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wooden nickels
Joined: 23 May 2010
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| Posted: Tue Feb 17, 2015 5:52 am Post subject: |
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| An acre of land in Colorado. |
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atwood
Joined: 26 Dec 2009
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| Posted: Tue Feb 17, 2015 6:16 am Post subject: |
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| wooden nickels wrote: |
| An acre of land in Colorado. |
To farm on or to grow on? |
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northway
Joined: 05 Jul 2010
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| Posted: Tue Feb 17, 2015 6:21 am Post subject: |
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| atwood wrote: |
| If you're from the U.S. and have a bank account there, you could do far worse than putting the money in Vanguard's Total Stock Market Index, either the mutual fund or ETF version. |
This is really good advice for the investing neophyte. |
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young_clinton
Joined: 09 Sep 2009
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| Posted: Tue Feb 17, 2015 8:20 am Post subject: |
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| In AAPL or SBUX. cut it in half and invest in both. |
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PRagic
Joined: 24 Feb 2006
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| Posted: Fri Feb 20, 2015 10:03 pm Post subject: |
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Don't forget that if you're American and you buy stocks or funds that go up in value, you'll get hit with a whopper on capital gains when you sell unless the government reverts back to pre-Obama rates. An increase in a stock price can make you feel wealthy, but it doesn't mean squat until you actually sell and pay the piper.
10,000 is a good chunk of change, but when investing you need to keep in mind your risk tolerance. Would you jump out the window if you lost a large portion of it? Will you be investing this amount every year for the foreseeable future or is this a one shot deal? If American, have you already filled up your IRA allotments? Will you need the money to live any time soon, for example to buy a home?
If you're continually investing over the long haul and are looking for some stability, it might be advisable to get into dividend generating funds and then reinvest the proceeds. Even at just a 5-6% return that can build up pretty quickly and you can always diversify as you go. Not very sexy, and you won't be that guy at the party spouting off about how his stock is up 900%, but you'll get there and not have too many problems sleeping at night. |
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atwood
Joined: 26 Dec 2009
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| Posted: Sat Feb 21, 2015 2:33 am Post subject: |
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| PRagic wrote: |
Don't forget that if you're American and you buy stocks or funds that go up in value, you'll get hit with a whopper on capital gains when you sell unless the government reverts back to pre-Obama rates. An increase in a stock price can make you feel wealthy, but it doesn't mean squat until you actually sell and pay the piper.
10,000 is a good chunk of change, but when investing you need to keep in mind your risk tolerance. Would you jump out the window if you lost a large portion of it? Will you be investing this amount every year for the foreseeable future or is this a one shot deal? If American, have you already filled up your IRA allotments? Will you need the money to live any time soon, for example to buy a home?
If you're continually investing over the long haul and are looking for some stability, it might be advisable to get into dividend generating funds and then reinvest the proceeds. Even at just a 5-6% return that can build up pretty quickly and you can always diversify as you go. Not very sexy, and you won't be that guy at the party spouting off about how his stock is up 900%, but you'll get there and not have too many problems sleeping at night. |
Show some proof capital gains taxes are higher under Obama than they were under Bush. He has proposed a capital gains hike would only affect those making more than $465,000, but what is the chance of that being passed?
And how many on this board are making that kind of money?
Dividend generating funds are a bad idea for several reasons. The research on that is extensive and persuasive. Do a little reading and you'll see. You can start with Larry Swedroe's works.
And for someone worrying about taxes, dividends are a bigger probem than capital gains. |
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Plain Meaning
Joined: 18 Oct 2014
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atwood
Joined: 26 Dec 2009
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| Posted: Sat Feb 21, 2015 5:09 pm Post subject: |
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Thanks for the info. It might be more accurate to say that for a small percentage of Americans the capital gains tax rate increased, however. |
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Plain Meaning
Joined: 18 Oct 2014
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| Posted: Sat Feb 21, 2015 8:03 pm Post subject: |
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| FWIW, the general thrust of your point is still correct; none of those increased capital gains rates should apply to anyone who posts on this board. |
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candy bar
Joined: 03 Dec 2012
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| Posted: Sat Feb 21, 2015 11:42 pm Post subject: |
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| A man on TV says if you send in a donation, plant a seed of faith, it is promised that your money will gain 10 fold. Well, there is your answer. |
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young_clinton
Joined: 09 Sep 2009
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| Posted: Sun Feb 22, 2015 12:35 pm Post subject: |
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| 10 fold faith investments are the best. However you have to remember, if you don't have a 10 fold increase, it's because your faith is not enough. |
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