thanx in advance

for only 4 months, i’d stick it in a high yield savings account.

Any advice on making that money grow in the 4 months I have would be wise.

steve, BTW, a submariner is definitely not an investment. it doesn’t appreciate, although it will retain value better because of name recognition. you also have to take into account the $500-$700 maintenance cost every 2-3 years.

- $5500 buy domain names (carefully choosen) and resell it later for profits.

Me too I own $10 000 that is my fortune, I don’t have any other savings as I

spend all my salary income on shopping, child school,……

I think I will spend this way to make more money.

Cruise to Mexico
Publish My Book

A down-payment on a tank…

Hmm.

Probably Travel. Greece or Australia. Maybe a cruise. If it were a requirement to not spend it on getting out of debt that’s what I’d use it for.

For her I would recommend maxing the Roth, establish emergency fund, pay debts. If there is anything left, I would start an index fund, and more importantly, keep contributing to that fund.

I wish I could land something like that for just being a nice guy, but I won’t be getting a sum like that. If I did, in my personal situation, I would take the $10,000 and because I have already placed $3500 into my Roth for the year, I would finish that baby out with $500.

Then I would set aside $1500 for part of a vacation I would like to take overseas.

With the $8,000 remaining, I would pay off $2500 in student loan debt and $2500 towards are car loan.

With the remaining $3000, I would take car of a year’s condo fees which is $900.

I would place $2000 into my brokerage account to grow somemore and then take the final $100 and go out to eat with the person/people who gave me this sum of money to thank them..

Now back to reality….Darn.

Here’s my recommendation:

1) Place $4000 into a ROTH IRA now (yesterday even!) ~ $4000 is the current contribution limit. Invest that $$$ into good growth stock mutual funds with a steady five to ten year track record of consistently high returns.

2) Place $5000 into a ROTH IRA after January 1st ~ $5000 is the contribution limit for 2008. Invest that $$$ into good growth stock mutual funds with a steady five to ten year track record of consistently high returns.

3) Place the remaining $1000 into a high interest bearing savings account like ING Direct or Salem Five Bank (I use ING Direct but Salem Five offers a slightly better return).

The Results:

Assuming that you started with $0 in your newly crerated ROTH IRA account, the $4000 that you contributed for 2007 plus the $5000 that you will contribute for 2008 will grow to $173,588 by age 65 (calculating on a conservative 8% rate of return) even if you never contribute another dime to the account……….ever.
You don’t need my meager math skills to understand that you could be sitting on a huge pile of cash, at retirement, if you continue to MAX-OUT that ROTH IRA from here on out. I stress ROTH IRA because at your age it would be to your benefit to use the ROTH IRA and pull out your earnings TAX FREE at retirement. Wow!

The $1000 that you placed into the high yield savings account will at least help to buffer that cash against the cost of inflation as well as provide you with an emergency cushion and prevent you from using credit cards in the event of an emergency. Your goal should be to save 3 to 6 months of expenses into this ‘Emergency Fund.’

The take home message:
Max out the IRA, save for a rainy day, COMPLETELY ban the plastic (credit cards) and ‘POOF’ ~ you’re a millionaire.

Make the folks proud and use that $$$ wisely ~ don’t blow it! Time is on your side! Wishing you the best!

Mike K.