Author Topic: How to invest $1000?  (Read 4034 times)

skrizzle

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How to invest $1000?
« on: April 21, 2014, 12:50:51 PM »
I have $1000 from dividends paid that couldn't be reinvested. How would you go about investing these profits?

drewfromutah

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Re: How to invest $1000?
« Reply #1 on: April 21, 2014, 01:54:03 PM »
I'd open a Lending Club account and buy 40 notes.

warfreak2

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Re: How to invest $1000?
« Reply #2 on: April 21, 2014, 01:56:40 PM »
It depends on what the rest of your money is invested in, what debts you have (if any), your financial goals, and your risk tolerance. You haven't really given us much to go on!

skrizzle

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Re: How to invest $1000?
« Reply #3 on: April 21, 2014, 02:19:15 PM »
Of course.

No debt. I can take on plenty of risk as I have no dependence on this money (although, I don't really know how to answer your question regarding risk). I'd consider investing into an index fund or stock of my choice but I don't feel now is a good time to purchase - prices are high and I can't find a value stock that I like/trust.

Let me know if you'd like further clarification.

Saverocity

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Re: How to invest $1000?
« Reply #4 on: April 22, 2014, 05:48:56 PM »
Of course.

No debt. I can take on plenty of risk as I have no dependence on this money (although, I don't really know how to answer your question regarding risk). I'd consider investing into an index fund or stock of my choice but I don't feel now is a good time to purchase - prices are high and I can't find a value stock that I like/trust.

Let me know if you'd like further clarification.

Without posting your current assets and liabilities such a question is rather difficult to answer.  I would suggest a good Bordeaux and 12 minutes in a strip club. But I am not the most Mustachian here.

Shor

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Re: How to invest $1000?
« Reply #5 on: April 22, 2014, 06:45:19 PM »
Buy the coolest bike ever!.. then sell your car.
Net Gain ~ $14,500
Yield: ~ 1,450%

svosavvy

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Re: How to invest $1000?
« Reply #6 on: April 23, 2014, 09:24:27 AM »
$1,000 div?  If it isn't already part of your allocation strategy (which if you are asking this forum then I would presume it is not) then it sounds like play money.  I would say markets have ample liquidity hence lack of bargains.  There is always a bargain you just need to find it (hint:the bargain is people).  I would suggest you choose an amazing person you know who could use some help and develop an idea to spend it in such a way that impacts their life meaningfully.  As long as that person retains their memory they will always remember your gregarity.  IMO a great person is a great investment if you think your gesture won't matter then maybe you should revisit your assessment of the person.  I am kind of in the same boat, wife and I both pay ourselves distributions from "the house" which is our old fashioned combined financial life.  I am easy to entertain so my distributions kinda lay around in the deadwood bank looking for a destination.  One of the big Buffett rules is surround yourself with great people then you will aspire to greatness or something like that.  Good luck, whatever you do don't buy a long term bond :)

warfreak2

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Re: How to invest $1000?
« Reply #7 on: April 23, 2014, 10:53:41 AM »
lol wut

Welcome, but you might be in the wrong place. There's no such thing as "play money", only "money", and how much of it you choose to spend on "playing" shouldn't depend on where it came from.

Well done, your investments produce more money than you need - but I'm sure you didn't get to that position by taking your own advice to give away any money that you weren't expecting to have. It's not like there aren't going to be unplanned expenses, too.

What you're suggesting is "don't invest it, spend it!" which is kind of the exact opposite message of this site. Also, you aren't going to fool anyone by putting the "investment" label on something that is obviously spending.

---

I vote shove it straight into an index fund. Market crashes happen, but anything predictable is already factored into the price today; besides, it hardly matters what happens in the short term.
« Last Edit: April 23, 2014, 10:58:45 AM by warfreak2 »

birdman2003

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Re: How to invest $1000?
« Reply #8 on: April 23, 2014, 02:08:08 PM »
I'd open a Lending Club account and buy 40 notes.

I tried to open an account but was denied with this message:

"Due to state regulatory restrictions, residents of your state [Iowa] are not permitted to purchase Notes on the Lending Club platform at this time. You may be able to purchase Notes from current Note holders through a secondary market operated by our partner FolioFN. To gain access to the FolioFN platform you will need to complete your Lending Club registration and then, separately complete the FolioFN application process."

arebelspy

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Re: How to invest $1000?
« Reply #9 on: April 23, 2014, 05:46:57 PM »
I vote shove it straight into an index fund. Market crashes happen, but anything predictable is already factored into the price today; besides, it hardly matters what happens in the short term.

This.  1000 is pretty small compared to what you'll need to FIRE, so start investing now, and learn to get over the timing the market idea.  :)

Index fund and done.
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imbros

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Re: How to invest $1000?
« Reply #10 on: April 24, 2014, 12:02:49 PM »
Buy the coolest bike ever!.. then sell your car.
Net Gain ~ $14,500
Yield: ~ 1,450%

+1 if feasible. (work is in bike commute distance etc.)

If not, open a Vanguard account and buy VGSTX.