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197 votes

What options do I have at 26 years old, with 1.2 million USD?

The amount of money you have should be enough for you to live a safe but somewhat restricted life if you never worked again - but it could set you up for just about any sort of financial goal (short ...
Grade 'Eh' Bacon's user avatar
114 votes

Why are low risk investments so strongly advised for first-time investors?

First-time investors, quite frankly, do not have enough experience to accurately assess their risk appetite. You're willing to "gamble" with that £50/month, but that's because it's just £50, and you'...
cHao's user avatar
  • 3,209
110 votes
Accepted

I won USD 50K! Now what should I do with it?

EDITED after OP added more details. no taxes have been taken out yet. 24% will probably be withheld, taking you down to 38K. The organization that ran the sweepstakes must withhold 24%. It's the ...
RonJohn's user avatar
  • 50.7k
92 votes

What options do I have at 26 years old, with 1.2 million USD?

Pay off the credit cards. From now on, pay off the credit cards monthly. Under no circumstances should you borrow money. You have a net worth but no external income. Borrowing is useless to you. $...
Brythan's user avatar
  • 21k
79 votes
Accepted

Should a high-school student invest their (relative meager) savings?

You should invest in that with the best possible outcome. Right now that is in yourself. Your greatest wealth building tool, at this point, is your future income. As such anything you can do to ...
Pete B.'s user avatar
  • 76.7k
62 votes

What are the benefits and disadvantages of investing $60-70K in the following methods?

Typical Human Advisor: Advantages: They can recommend funds and allocations that fit to your portfolio. Disadvantages: Those who are just fund salespeople in disguise will usually recommend poor-...
Shorlan's user avatar
  • 904
60 votes

What options do I have at 26 years old, with 1.2 million USD?

You need the services of a hard-nosed financial planner. A good one will defend your interests against the legions of creeps trying to separate you from your money. How can you tell whether such a ...
O. Jones's user avatar
  • 1,111
60 votes
Accepted

Invest $50,000 in cash or borrow $100,000 and get a mortgage?

I can use that property to get a loan for another real estate? Or that's not how loans work? That's not how secured loans generally work. You could get a mortgage on your rental property, but the ...
D Stanley's user avatar
  • 136k
54 votes

I'm 18 and have 6 grand. What should I do with it?

A Roth IRA is a great idea. You can only put in as much as you earn (as in, get in paychecks) each year, but that shouldn't be too much of a problem for you right now. You're paying nothing in taxes,...
Joe's user avatar
  • 35.8k
52 votes

I'm 18 and have 6 grand. What should I do with it?

Unlike others, I do NOT recommend putting your $6k into a retirement fund this early. It's a bad idea.1 If you're overflowing with money after college and don't know what to do with this $6,000 then, ...
user541686's user avatar
  • 3,369
48 votes

Should I open a Roth IRA or invest in the S&P 500?

Your question indicates confusion regarding what an Individual Retirement Account (whether Roth or Traditional) is vs. the S&P 500, which is nothing but a list of stocks. IOW, it's perfectly ...
RonJohn's user avatar
  • 50.7k
47 votes

What options do I have at 26 years old, with 1.2 million USD?

Until you get some financial education, you will be vulnerable to people wanting your money. Once you are educated, you will be able to live a tidy life off this-- which is exactly why this amount ...
Harper - Reinstate Monica's user avatar
47 votes

I won USD 50K! Now what should I do with it?

You make $50/hr and are in debt? This is a serious problem! The $50K is a distraction. This is what I'd do: Pay off any high-interest debts (say 7% and above) up to ~$40k (saving some for taxes, ...
NPSF3000's user avatar
  • 1,588
47 votes

Realistically, how much do you need to start investing?

Any amount greater than 0 is fine really.* Investing great lump sums is akin to timing the market, just set a monthly target and stick to it.** Consistency over the long term is the key to success. ...
Leon's user avatar
  • 4,107
41 votes

Is it an OK strategy to sell whenever an investment gains value above a threshold?

This sounds like "timing the market" and is not a viable long-term strategy. You buy when you think a stock will go up, and sell when you think it goes down, or when you want to diversify, ...
D Stanley's user avatar
  • 136k
38 votes

Why are low risk investments so strongly advised for first-time investors?

They may well be concerned that, if the fund does not perform, they could be in trouble for mis-selling further down the line if you made a complaint. Following the financial crash, and various mis-...
webdevduck's user avatar
  • 1,017
35 votes

Can you really always yield profit if you diversify and wait long enough?

"Always" is an absolute, but history does show that in the long run the (EDIT: US) stock market has gone up. But not continuously up. And in the long run, you're dead. Unless you're really ...
RonJohn's user avatar
  • 50.7k
34 votes

Invest $50,000 in cash or borrow $100,000 and get a mortgage?

You've really answered your own question, without even needing to go into the financial details. "I just don't like the idea of getting in debt and not being able to move any time soon." If you want ...
jamesqf's user avatar
  • 11.1k
29 votes

I'm 18 and have 6 grand. What should I do with it?

First, it's great that you're considering these options at all, and that you're trying to be responsible and forward-thinking about planning for your future. I'm also going to break with the ...
mc01's user avatar
  • 444
27 votes

Is it an OK strategy to sell whenever an investment gains value above a threshold?

This feels like a variant of a sunk-cost fallacy. Don't consider the $10k at all in your investing; there's nothing you can do to get it back. Instead, suppose someone gave you $10.5k worth of stock. ...
Teepeemm's user avatar
  • 409
25 votes

Help getting started (I've just opened a trading account)

You're not going to learn anything of significance by investing or trading with only $200 other than how to use the platform of your broker and you could easily do that by opening a FREE paper trading ...
Bob Baerker's user avatar
  • 76.6k
23 votes
Accepted

As a 22-year-old, how risky should I be with my 401(k) investments?

At 50 years old, and a dozen years or so from retirement, I am close to 100% in equities in my retirement accounts. Most financial planners would say this is way too risky, which sort of addresses ...
Pete B.'s user avatar
  • 76.7k
22 votes

How do I invest in the S&P 500?

The S&P 500 is a stock market index, which is a list of 500 stocks from the largest companies in America. You could open a brokerage account with a broker and buy shares in each of these ...
Ben Miller's user avatar
  • 116k
22 votes

Am I losing money in my 401 K?

That depends on your definition of losing money, and the specifics of where your 401k money is invested. If for instance you invest money in an index fund, and the index declines (as it has in recent ...
jamesqf's user avatar
  • 11.1k
20 votes

When to stop saving and start investing?

Given your specific situation, being debt free and in Germany where there are supportive social structures in place for potential unemployment etc, I would consider the following: Depending on your ...
Leon's user avatar
  • 4,107
20 votes

I won USD 50K! Now what should I do with it?

Not sure if I've read properly, but 50k is not all that much, even moreso as existing debt is involved (was it maybe 500k, and I misread?). Insofar, the mere idea "Should I buy property or start a ...
Damon's user avatar
  • 409
20 votes

Realistically, how much do you need to start investing?

Two parter: Part 1: How much money do you need to have before you invest? You want to ensure that you have enough money in liquid form to cover emergency expenses/etc. before you invest in anything. ...
Dugan 's user avatar
  • 2,582
20 votes

How do I know when to quit trading?

If you are investing in stocks, the best way to tell is to see how you compare against the S&P500. In general, that's your baseline. The problem is, you've only been investing for a few months, so ...
ChrisInEdmonton's user avatar
19 votes

What options do I have at 26 years old, with 1.2 million USD?

If you were the friend of my daughter or some other "trusted" relationship, I would tell you to head on over to Bogleheads.org, follow their advice and do research there. I would advise you to aim ...
Pete B.'s user avatar
  • 76.7k
19 votes

Realistically, how much do you need to start investing?

If you are able to invest £2000-£3000 a month then you are already in amazing shape if you ask me. That's my entire wage (and that's after tax!!). I invest something like £80 each month, and even that ...
Anju Maaka's user avatar

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