Author Topic: Stubble faced new Mustachian inquiry on first time investment.  (Read 1567 times)

dmoon

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My profile:
I do not come from money and have very little to stand on, for now.
My positive predicament:
The bills are low and getting lower.  My house is paid off.
The intention:
To sell the home and move to a more desirable location.  After collecting on the home I would like to make some money with a percentage of the cash on hand. Preferably a quick turnover (six to 12 months?).

Hyperlinks to credible sites appreciated, as well. 
Thanks a million (pun intended)!
Grateful to be connected here...


Chrissy

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Re: Stubble faced new Mustachian inquiry on first time investment.
« Reply #1 on: June 22, 2014, 12:47:48 PM »
Are you currently contributing to any tax-advantaged accounts?  Ex ROTH, 401K, SEP?

dmoon

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Re: Stubble faced new Mustachian inquiry on first time investment.
« Reply #2 on: June 22, 2014, 01:11:59 PM »
401K, yes.  I have not taken advantage of the match from my employer.  ROTH and SEP are both foreign to me.  After collecting on my house, I will no longer be working for the same employer (moving out of state).  The goal, for now, is to eventually create a passive, monthly income...  Obviously, my question and answers are of a 'newbie' mentality.  Should I still take a 'match' of 401k for less than a year?    Currently making approximately 60K.

Chrissy

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Re: Stubble faced new Mustachian inquiry on first time investment.
« Reply #3 on: June 22, 2014, 01:31:10 PM »
You should take the match IF you are vested and can take that money with you when you leave.  It's free money!

SEPs are for small business owners and the self-employed.  With ROTHs, you can't take a tax break on your return, however you pay NO taxes when you retire and withdraw the money.  Most IRAs are the other way around:  take a tax break now, pay taxes at retirement.

If you only intend to invest the money for 6-12 months, I'm a little at a loss, since I'm a long-term investor.  All I can think of is CDs.  They don't throw off a lot of interest, but something is better than nothing. 

Looks like you can get 1.10% on a 1-yr CD pretty easily.  If you invested $50,000, you'd get $550 when the CD matures in 12 months.  CDs, or Certificates of Deposit, are very safe--your deposit is FDIC insured--so you're guaranteed not to lose anything.

http://www.depositaccounts.com/cd/
« Last Edit: June 22, 2014, 05:11:44 PM by Chrissy »