A question for all you great people

I have a decent, not quite, 5 figure commission coming my way if everything works out like it should, I am probably jinxing myself as I type this, but oh well my question is.

What to do with the money: I wish it was anofe to do all 4 because they are no way mutually exclusive, but It is not, or is it? IDK what do you all think?

I could buy Stocks: kinda wanna weight for a dip.

2. Gamble it up on sports betting and options contracts.

3. buy silver

4. buy gold

what do you all think. Number two is kinda a joke, but a little gamble is always fun. I am pretty sure that I can let this money sit on ice for a long while if that helps.

Thanks in advance.

 

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If you are going to gamble, play a high stakes poker game, if you know how!

 

What to do is based upon your objective. Make as much money as possible in the shortest amount of time? Then go put it on 24 in roulette. Pays 35 to 1 and only takes 15 seconds. Seriously though you need to start with your goal, your risk tollerance and what enjoyment, if any, you want through this process .

 

Leghi: I thought about putting it on my stars account. Its not Boby's room type of money or anything . It sucks that I live in the Buckle of the bible belt and the closet casinos are hours away. Although I do run hot in New Orleans for some reason. so that could be an option. Do you ever play there?



Otter: 24 sucks 11 is where it is at. Rullet is fun as hell. As far as risk goes I like to sports bet and play rullet i'm not adverse to risk. I think the funest way to spend the money would be plane ticket to amersterdam

 

15% #4 GOLD ( The US dollar/world currency too flakey for now, no more than 20%)
50% #1 Stock ETFs ( set following stops for 10% loss)
10% #2 Why work if no adrenaline play.
25% cash , for when Gold or stocks crash
IMO

Jim

 

put it in municipal bonds. You can buy in $50K chunks. They pay 5%. Set it up so you wait 2 years, then get $$ every year after that. You pay no tax on intrest for these bonds. Thats what finacial advisor told me he would do last week and what the really wealthy do.

 

The Noost: I am freaked out about municipal bonds right now. I live in Jefferson County, AL and we are about to go bankrupt because of them. Also the county commioner at the time we issued our sewer debt is going to jail for the rest of his life. Guility on 60 fealony counts. Which plays a large role in my fear, but. With just the little I know about them it seems like what used to be an amazing way to fund public works have been corputed. Also I was reading somewhere that "Bonds where way over bought" maybe seeking alpha idk. is there any truth to this?

 

I'd spread a little across 1, 2 and 3 balance is always important. I'd also splurge a little on something fun.

 

penny stocks!! (joking, but I have made a little cash on them)

 

I only play in Atlantic City & Las Vegas. Very few poker rooms in the country that offer the limit I play on a regular basis. Borgata & Taj Mahal in AC and Wynn, Bellagio, & Mirage in LV. That is about it other than Commerce.

 

" maybe seeking alpha"
Not sure what that means. But....
After he told me about the stock porfolios he offered, I suggested a shorter term vehicle. Thats when the bond fund came up (not at a muni level at this point). After that discussion, I specificly asked him what he woould do with x ammount of $$. Thats what he said. Municipal bonds.
Maybe you should talk to a financial advisor and see what they think?? Initial consultation was free for me.

 

SeekingAlpha.com

 

I like stocks...easy to buy, easy to sell. The key is to minimize risk and expense. There are a lot of well managed companies out there that are currently "on sale".

If you don't have the time (or desire) to do the research, then Dollar Cost Averaging (DCA) into an S&P Index fund may be the way to go. 12b-1 fees on index funds typically run less than 1% with a company such as Vanguard and you can set up any type of automated transfer method you desire.

I like Dividend Reinvestment Plans (DRIPs...minimal expense) with large, well managed companies that have great free cashflow...such as telecom or cable companies.

For instance...

I recently added to my AT&T(T) DRIP. AT&T is a large, well managed telecom company with international exposure. It has a strong balance sheet, trades at 12 times forward earnings, and has a 6.4% yield. I just put my money in the DRIP and forget about it.

It's difficult to discuss bonds in a forum such as this. Suffice it to say that the typical bond fund gets clobbered in a rising interest rate environment...which we will likely see in the not-too-distant future.

Everything else you mentioned is a crap shoot. PMs may continue to rise, but I don't like the underlying fundamentals. I buy PMs via coins as a hobby; not an investment. They go up, they go down...but they don't pay a dividend.

 

High-risk investments should be no more than 10-15% of your investment pyramid. The majority should be in blue-chip stocks and bonds or in ISAs (Or whatever the US equivilent is). Putting a little bit into gold on a dip is a good idea too. It has the potential to go up considerably in price over the next few years, and even in the event of it going down, it will always retain considerable value....

 

1. Put the money in the bank.
2. Start studying.
3. When you learn enough to KNOW that something is a bargain and is also something you completely understand and like, take the money out of the bank and buy it.
4. If you can't find something you completely understand and know to be a good value, leave it in the bank.

Any other course of action will probably lose the money in the long run.

 

I couldn't agree more!

Also, does your company offer any 401k plans with matching benefits? Always go the rout where you can get free money first.

 

Maybe you could use it to enroll at the local community college.

 

I did about 150% profit on stocks last year. if you want some lotto picks look at EVFL KRY and TSTR they are all long shot stocks with potential for hi return and potential for hi loss.

 

Not totally a bad idea for a little of it. I have my money scattered everywhere, but the part that I play with in penny stocks has made me 5 figures in 2009. I am very picky about which one I buy, when I buy it, and when I sell it and run.

 

To me that says it all right there. I invest in everything listed, just gotta know when to take a good deal. Who cares if its a stock, or a gold coin, if you know you can make money then do it. If I were you I would snag a full set of pf/ms 70 Buffalo coins and wait to spend the rest thats just me though... and im a bit buffalo crazy. :goofer::goofer: