The only way to make it grow is through investing it. The more risk you take on, the higher it has the chance to grow. However, at the same time you have an increased risk that you'll lose your investment.
A money market account is safe and leaves your liquid assets in a state where you can get them easily. The downside is a poor rate of return.
Tax-exempt bonds (local, state or federal) are an attractive option provided that the rate of inflation doesn't exceed your rate of return or reduce it to effectively nil.
Another sensible option would be to pay off any debts you have. Your income is your best way to grow wealth, and every dollar you pay in interest is a dollar taken away from your future earnings. Even though this isn't as exciting an option as putting your money in the stock market, this might be your best bet longer-term.
If you have no debt, then the $50k would go a long way towards a down payment on a home - that way you can stop paying rent, which is another source of wasted earnings.
I agree with the rest of the advice, but buying a home is not a good investment in all parts of the country/world, nor at all times. A home you own decreases your mobility and thus your employment options, especially if the labor or housing market in your area plummets in the future.
In other markets, home ownership and all its associated costs (including property taxes and maintenance) is more expensive in both the long and short term than renting.
For instance, for what I pay in rent in NYC (PLUS a down payment), I would have to commute at least 3 times as long to afford to buy an equivalent home. And also have to add the responsibility (in time and expense) for maintenance - from upgrading the plumbing to shoveling snow from the sidewalk.) Further, it'd be much more difficult to see friends, whom I'd no longer live near. That's all time that could instead be spent with friends and family, being healthier, or even making money on a side project or freelancing.
And if you get poor terms on your mortgage (think variable rate loans), you're just setting yourself up for pain.
"The more risk you take on, the higher it has the chance to grow."
Not true, and it's often opposite where higher risk means a higher overall worse performance. You can also do more homework than others, and/or have more patience than others.
The subreddit /r/personalfinance has a wiki article about "windfalls", the principles of which apply here (section "Get educated on saving and investing"):
I got 'talked into' moving a chunk of money out of a current account into a combination of investment ISAs and Personal Investment Plans with Scottish Widows. Over 5 years they have increased in value by about 35%, so average 7% per year. Here is one of the ones I used:
I went in knowing nothing, and wouldn't have done it if my bank hadn't pushed me in that direction (the department of the bank no longer exists) and I guess I got lucky, as it has worked out well for me.
PLEASE NOTE: investment ISAs/Personal Investment Plans with Scottish Widows can go up and down. Also bear in mind I an openly saying I know next to nothing about this, so please don't jump into anything without researching it carefully.
There's no way for you to reliably make even 20k in the next year off of an investment of 50k unless you are going to be personally involved in it. You will also almost certainly make at least 20k at your job in the next year, and can probably figure out a way to increase your salary by 20k.
Put 5k in NYSE:BND for your emergency fund, Fidelity/Vanguard/Etc work about the same. Then put 5500 in Roth IRA NYSE:VOO. Then do the same for your work 401k account if you have one. Put the rest in a brokerage account in NYSE:VOO, maybe save 5500 for 2018 IRA.
'more' in terms of value? Then, take a break and roam the world. You can sustain for 2-3 years and do a RTW at a slow-n-steady pace and also make some money in the interim :)
If you take a few months off to live on that money and learn something new, would it be enough to increase your earnings by $100k total over the next 5-10 years? That's also an investment, and one that's got a decent chance of doubling your money in a reasonable timeframe.
An unusual recommendation perhaps but recently I've been thinking of starting a small online business. Investing in that seems to offer the better risk to reward ratio. It also doesn't require a large capital to start. Consider that perhaps?
I don't have time to start a business, otherwise I wouldn't ask (see the title). I just look for ways to make it more with doing one time jobs (like investing, buying selling etc.) which I don't have to do the thing on a regular basis but one time and make it 51k after some time, for example.
Dear Sir, SEEKING YOUR IMMEDIATE ASSISTANCE. Please permit me to make your acquaintance in so informal a manner. This is necessitated by my urgent need to reach a dependable and trust wordy foreign partner. This request may seem strange and unsolicited but I will crave your indulgence and pray that you view it seriously. My name is. DAN PATRICK of the Democratic Republic of Congo and One of the close aides to the former President of the Democratic Republic of Congo LAURENT KABILA of blessed memory, may his soul rest in peace. Due to the military campaign of LAURENT KABILA to force out the rebels in my country, I and some of my colleagues were instructed by Late President Kabila to go abroad to purchase arms and ammunition worth of Twenty Million, Five Hundred Thousand United States Dollars only (US$20,500,000.00) to fight the rebel group. But when President Kabila was killed in a bloody shoot-out by one of his aide a day before we were schedule to travel out of Congo, We immediately decided to divert the fund into a private security company here in Congo for safe keeping. The security of the said amount is presently being threatened here following the arrest and seizure of properties of Col.Rasheidi Karesava (One of the aides to Laurent Kabila) a tribesman, and some other Military Personnel from our same tribe, by the new President of the Democratic Republic of Congo, the son of late President Laurent Kabila, Joseph Kabila. In view of this, we need a reliable and trustworthy foreign partner who can assist us to move this money out of my country as the beneficiary. WE have sufficient ''CONTACTS'' to move the fund under Diplomatic Cover to a security company in the Europe in your name. This is to ensure that the Diplomatic Baggage is marked ''CONFIDENTIAL'' and it will not pass through normal custom/airport screening and clearance. Our inability to move this money out of Congo all This while lies on our lack of trust on our supposed good friends (western countries) who suddenly became hostile to those of us who worked with the late President Kabila, immediately after his son took office. Though we have neither seen nor met each other, the information we gathered from an associate who has worked in your country has encouraged and convinced us that with your sincere assistance, this transaction will be properly handled with modesty and honesty to a huge success within two weeks. The said money is a state fund and therefore requires a total confidentiality. Thus, if you are willing to assist us move this fund out of Congo, you can contact me through my email address above with your telephone, fax number and personal information to enable us discuss the modalities and what will be your share (percentage) for assisting us. I must use this opportunity and medium to implore You to exercise the utmost indulgence to keep this Matter extraordinarily confidential, Whatever your Decision, while I await your prompt response. NOTE: FOR CONFIDENTIALITY, I WILL ADVISE YOU REPLY ME ON MY ALTERNATIVE EMAIL BOX ...Thank you and God Bless. Best Regards, MR DAN PATRICK.
Kaizyn|9 years ago
A money market account is safe and leaves your liquid assets in a state where you can get them easily. The downside is a poor rate of return.
Tax-exempt bonds (local, state or federal) are an attractive option provided that the rate of inflation doesn't exceed your rate of return or reduce it to effectively nil.
Another sensible option would be to pay off any debts you have. Your income is your best way to grow wealth, and every dollar you pay in interest is a dollar taken away from your future earnings. Even though this isn't as exciting an option as putting your money in the stock market, this might be your best bet longer-term.
If you have no debt, then the $50k would go a long way towards a down payment on a home - that way you can stop paying rent, which is another source of wasted earnings.
cauterized|9 years ago
In other markets, home ownership and all its associated costs (including property taxes and maintenance) is more expensive in both the long and short term than renting.
For instance, for what I pay in rent in NYC (PLUS a down payment), I would have to commute at least 3 times as long to afford to buy an equivalent home. And also have to add the responsibility (in time and expense) for maintenance - from upgrading the plumbing to shoveling snow from the sidewalk.) Further, it'd be much more difficult to see friends, whom I'd no longer live near. That's all time that could instead be spent with friends and family, being healthier, or even making money on a side project or freelancing.
And if you get poor terms on your mortgage (think variable rate loans), you're just setting yourself up for pain.
nicholas73|9 years ago
Not true, and it's often opposite where higher risk means a higher overall worse performance. You can also do more homework than others, and/or have more patience than others.
lobster_johnson|9 years ago
https://www.reddit.com/r/personalfinance/wiki/windfall
scraft|9 years ago
http://webfund6.financialexpress.net/clientsv21/scottishwido...
I went in knowing nothing, and wouldn't have done it if my bank hadn't pushed me in that direction (the department of the bank no longer exists) and I guess I got lucky, as it has worked out well for me.
PLEASE NOTE: investment ISAs/Personal Investment Plans with Scottish Widows can go up and down. Also bear in mind I an openly saying I know next to nothing about this, so please don't jump into anything without researching it carefully.
powera|9 years ago
There's no way for you to reliably make even 20k in the next year off of an investment of 50k unless you are going to be personally involved in it. You will also almost certainly make at least 20k at your job in the next year, and can probably figure out a way to increase your salary by 20k.
ixacto|9 years ago
gnarbarian|9 years ago
anotheryou|9 years ago
zeynalov|9 years ago
venkasub|9 years ago
khalll|9 years ago
MildlySerious|9 years ago
Bitcoin as an "investment" is a lot more volatile than most other options. But, as of now, also a lot more profitable.
gesman|9 years ago
techthumb|9 years ago
LeonB|9 years ago
cauterized|9 years ago
merchang|9 years ago
unknown|9 years ago
[deleted]
staz|9 years ago
scorpioxy|9 years ago
zeynalov|9 years ago
staz|9 years ago
[deleted]
boznz|9 years ago
elastic_church|9 years ago
mattnumbe|9 years ago