Coming into about 100,000 dollars. What to do?

Hk-4-Life · 09-25-2009, 02:58 PM

recently i was in a pretty ridiculous car accident involving a drunk driver.
After talking to my attorney it looks like i'll be getting about 100,000 dollars.

Im trying to decide what would be the best way to make this 100,000 turn into 1,000,000 not completely go away(by spending it).

In all of your opinions. what should i do?

here's a few things i was thinking.

1. invest in stock- what stock should i buy and should i buy 100,000 dollars worth of it or buy a few different stocks?

2. open a business- if so what would you open and where? would 100,000 dollars be enough or would it be in my interests to pull out more money in loans?

3. ?

All joking aside...the business i was thinking of opening would be a Strip Club/Hookah Lounge.

I dont think there is one anywhere and i think it would be cool to be able to watch girls dance and smoke hookah at the same time.

Another company i was thinking of trying to open would be a "2 men in a cab" type business.
Basically it would be good in big cities or what not for people who want to take a cab home but dont want to leave their car overnight.

What would you guys do with $100,000?

theubernoob · 09-25-2009, 06:06 PM

throw a decent chunk in a total stock market fund. put the rest in some type of low risk investment, fund your ira, etc

Random.Samurai · 09-26-2009, 10:35 AM

I would give it all to me.

Open a field or store, man!

pchsfootball2404 · 09-26-2009, 03:34 PM

Quote:

Originally Posted by Random.Samurai

I would give it all to me.

Open a field or store, man!

No...

Unless you have a very solid place and know the demographics opening a feild would just result in him losing his money.

I would say to invest half of it in something low risk c.d's certain mutual funds. Rest in a Diverse porfolio of stocks. Never invest all your money in one particular stock.

The Essentials · 09-26-2009, 07:52 PM

buy a car.

Random.Samurai · 09-26-2009, 08:21 PM

Quote:

Originally Posted by pchsfootball2404

No...
Unless you have a very solid place and know the demographics opening a feild would just result in him losing his money.

Well, he doesn't have to... that's why I first offered to take it off his hands

As my advisors at Wu-Tang Financial told me, you need to diversify your bonds. Protect your g*qq@mn neck!

treett0 · 09-27-2009, 09:09 AM

Make the strip club thing. They have one in louisville,kentucky and people smoke all night. Its packed there to.

-HATER- · 10-02-2009, 12:47 AM

Quote:

Originally Posted by treett0

Make the strip club thing. They have one in louisville,kentucky and people smoke all night. Its packed there to.

most likely will.
my friend is also coming into a decent amount of money(from insurance. we were both involved in the same wreck) and likes the idea/will invest his share as well(he will be getting more then me)

mulletstation · 10-02-2009, 02:46 AM

look at all the terrible advice in this thread. You're not going to be able to open a 'strip club' for 100K guys. what the hell

Fund your 2008 IRA to the max
Fund your 2009 IRA to the max
Pour whatever percentage you want your 'moderate risk' investment into a Vanguard fund, or a S&P ETF
Pour whatever percentage you want your 'safe' investment into a long term CD
Put what you want to risk into 10+ or more solid blue chip stocks, with some high risk stuff like solar or financials if you're feeling the need to gamble.

Thrill.Ride07 · 10-02-2009, 08:49 AM

put it all in AIG.

no but really, if you are not familiar with investing that 100,000 can really drop.
Talk to a financial planner, Open some interest lock up plans for 2yrs 3yrs and 5yrs (Put maybe 30% of the 100,000 divide it into those 3 different times)

Pay any or all debt you have.

Put 10% readily available for personal/ business use.

put another 40% into a fund, where they can invest it and most likely beat the market for you.

%20 play around with, Buy some of your own stocks after doing some research, Try and learn about investing in the markets and how it works.

Your good to go!

DagNasty · 10-02-2009, 10:39 AM

Quote:

Originally Posted by mulletstation

look at all the terrible advice in this thread. You're not going to be able to open a 'strip club' for 100K guys. what the hell

this

Real estate while the market is still in the crapper or talk to an financial advisor with your goals in mind and set a plan to get there. Turning $100k into $1mil in the stock market involves a fair amount of risk but can be done.. best advice I can give you is pay down debt (as previously mentioned here) and put the rest away and let it work for you over the next 10-20 years, then enjoy a large pot of cash.

phoolio · 10-02-2009, 10:57 AM

how did you get 100k out of him. like what do you have to say to squeeze that out? im being serious, does the damage to you/ the car have to be a certain extent or what?

Calin · 10-02-2009, 02:22 PM

Quote:

Originally Posted by mulletstation

look at all the terrible advice in this thread. You're not going to be able to open a 'strip club' for 100K guys. what the hell

Fund your 2008 IRA to the max
Fund your 2009 IRA to the max
Pour whatever percentage you want your 'moderate risk' investment into a Vanguard fund, or a S&P ETF
Pour whatever percentage you want your 'safe' investment into a long term CD
Put what you want to risk into 10+ or more solid blue chip stocks, with some high risk stuff like solar or financials if you're feeling the need to gamble.

Hmm I'm not so sure about this piece of advise either.

You have to evaluate if a lawsuit settlement counts for earned income according to IRS regulation. If it doesn't then he can't contribute (fund) his IRA at all with that money.

As for the advice for Vanguard or S&P ETF. I don't think thats a great idea either. Most Vanguard funds are horrible relative to performance and the S&P ETF is pretty terrible too. Did you know that in the past 10 years if you invested into the S&P fund you lost money. Why would you invest money, lock it away to lose money. Makes no sense I think. Don't get me wrong Vanguard has some decent funds, but overall it isn't a sound company to be with. You are better off at a firm that can buy different funds and do it that way.

CD's are yielding close to nothing right now. Long Term or not, if you want to lock your money away like that I would say wait if you want to sock it away for a few years or at least do a ladder them out. As in you take say 20k chop it up in the 4 pieces and buy a 3,6,9 and 12 month and put 5k in each duration. When the 3 month matures buy a 12 month and so on. Or you can go 6,12, 18 and 24.

The Blue Chip stock idea isn't bad, but I would suggest a similar strategy but find something that has a decent yield to it. If you don't plan on following the market all the time then don't invest in something that requires you to. I know a person with 25,000 shares of Washington Mutual, never paid attention to it and is now worth basically nothing.

I think the best piece of advice is for him to see what cash he needs to be on hand. Afterwards you need to decide what rate of return you are looking to get roughly.

After you figure that out then fine a set of investments that exposes you the least ammount of risk that has historically performed like that, then evaluate if you believe it can be done again.

XFreak · 10-03-2009, 07:13 PM

buy 1 share of this

http://www.google.ca/finance?q=NYSE%3ABRK.A

no but seriously, invest at least half into stocks (more than 1). Diversify yourself. Talk to a broker, etc.

Zio7 · 10-04-2009, 06:25 PM

If you don't have a really good idea of what you're doing with stocks, especially with the recent volatility, that $100,000 could literally disappear within a day or two.

Your best bet is a solid business plan. The hookah bar idea isn't bad actually, the strippers might actually deter people though. It'll be hard to draw 50% of the people that would potentially go to it.

I live in Houston and the hookah bars around here are doing pretty well. You'll still ultimately need a good loan unless real estate around where you are is just at absolutely nothing.

p8ntballoc11 · 10-04-2009, 06:52 PM

If it were me, I would definitely open up my own business. I already know what I want to do (not telling). I'm gonna pursue it after I graduate and (hopefully) get my med degree.

AlphaNeo36 · 10-04-2009, 10:48 PM

You could research past lottery winners and identify their failures so you don't commit them?

GrimXtk · 10-21-2009, 05:10 PM

I also got 100,000 from insurance from when my mom died. My uncle controls it until I am 25 (can't touch it until then). So my mom is letting him invest the $$$ so it would grow (my uncle trades bonds and stuff and is fairly wealthy, so mom trusted him to do that)

nanarmotettet · 10-27-2009, 07:43 PM

blow it all and live life to its fullest.

Maximumheat2001 · 11-06-2009, 05:33 AM

I'd do two chicks at the same time.

FiresofSirius · 11-06-2009, 12:44 PM

Quote:

Originally Posted by GrimXtk

I also got 100,000 from insurance from when my mom died. My uncle controls it until I am 25 (can't touch it until then). So my mom is letting him invest the $$$ so it would grow (my uncle trades bonds and stuff and is fairly wealthy, so mom trusted him to do that)

She's communicating with your uncle from beyond the grave? Ouija Board?

Back on topic: Speak to a financial professional who will be able to better gauge your future plans, risk profile, and all that other fun stuff. Don't make a commitment until you understand everything and do a little bit of your own research because these guys do predominantly work on commissions from load fees.