# $25000 to Invest. What would you do?



## davdoc0011 (Nov 13, 2008)

If you were to invest and had $25000. What would you do?


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## Dagwood (Oct 1, 2007)

I think I would buy real estate.


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## swhiting (Oct 4, 2007)

Dude, you're on a fishing forum....... 

If you're asking us what you should invest in, A BOAT, duh!

Then invite all of us and we'll tell you what a wise choice you made


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## shipoke (Jul 11, 2008)

Buy a small fixer-upper house. When the market turns, you will have it ready to put on the market.
Shipoke


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## shipoke (Jul 11, 2008)

Buy a small fixer-upper house. By the time the market turns, you will have it ready to put on the market.
Shipoke


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## Jighead (Feb 11, 2009)

I'm in the same situation. I just pulled my tiny nest egg out of the market. I'm looking at real estate in the 10 to 20k range. If real estate doesn't work then maybe some BP stock. (Joking)


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## ?MEGA (Jan 31, 2009)

my grandfather told me the safest way to double your money is to fold it and put it in your pocket.


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## bayrat (Jun 5, 2008)

Houses and lots, Whorehouses and lots of whiskey, but on a real note, real estate.


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## Bullshark (Mar 19, 2009)

shipoke said:


> Buy a small fixer-upper house. By the time the market turns, you will have it ready to put on the market.
> Shipoke


If you don't need the $ real estate. Personally I would not buy a house though. Well anymore I bought 2. I get sent listings and have noticed a few nicer condo/town houses. I saw one in a building that is mostly elderly which if I was not spent would have been bought by me now. You can get a pretty nice one for 20-30k. You never have to worry about the really big stuff on multi family properties unless you buy the whole building. The problem with buying a home for that is you end up in the bad area and i'm sorry but it's not worth it. I can't sell 1 house and I don't want to rent it. So I own the nicest house in the hood that is just sitting.


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## Splittine (Nov 24, 2007)

Thats easy.....Guns.


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## WW2 (Sep 28, 2007)

BP is at 2/3rds what it was and the well is capped....


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## BIGKENNY (Dec 30, 2008)

thats really easy tits for my wife


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## standrew (Dec 15, 2009)

Jighead said:


> I'm in the same situation. I just pulled my tiny nest egg out of the market. I'm looking at real estate in the 10 to 20k range. If real estate doesn't work then maybe some BP stock. (Joking)


People have made a ton of money on BP in the last 2 months. When there's blood in the streets (or oil in the gulf) play ball......

BP p.l.c. Common Stock Share Price Chart | BP - Yahoo! Finance


Right now I would still play them for a little bit... They are going to make out like bandits with this spill. They've already posted a 17 billion loss last quarter (mostly from giving the gov 20 bil). Their stock will outperform the dow for the rest of the summer IMO. If you're into the double dip theory, put some money in bonds.....

If you're not a gamblin man, go and open up a gourmet icecream shop in St Andrews or Apalach or some other small coastal area that has a lot of restaurants within walking distance. Great seasonal business....


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## JoshH (Sep 28, 2007)

Put it in the bank and forget about it and act like it wasnt there.


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## Horse in around (Jan 1, 2008)

$12,000.00 Gold
$12,000.00 Silver
$1,000.00 Whiskey


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## nextstep (Jun 27, 2008)

pay off a small portion of my debt


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## asago (Nov 11, 2008)

Open up an IRA or stick it in a money market account.


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## Emerald Ghost (Mar 11, 2008)

Let's keep this thread going,..... I'm wanting to do the same thing right now.
CD's aren't paying anything, and a GREAT buy on real estate might work. Rent it out now and then sell it when and if the market turns..........
Where is that $20-$30K place located Bullshark ?
My money is just sitting, and it needs to be working.


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## PensacolaEd (Oct 3, 2007)

Lottery tickets?

I'd probably go with either foreclosed Real Estate or overseas mutual funds.

Ed


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## ul412al (Oct 2, 2007)

Why not start a business (based on something you really enjoy) which could provide you with everything you need to retire and then some. Certainly there is risk but...


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## Wild Froggy (Mar 2, 2009)

*This is It*

Take it from a Certified Real Estate Appraiser, buy investment properties. Lots of great deals on the market right now.:thumbup:


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## Linkovich (Oct 24, 2007)

Brass and lead....the way things are going it will be worth more than gold and silver soon.


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## Grassflatsfisher (Oct 3, 2007)

Realestate still hasnt bottomed out. Plus if its for investment you will be paying taxes on your rental income or gain on sale. Who knows what your tax rate will be in a few years...a quick look at history says that they wont go down anytime soon. Gold and silver are at their highest levels in history so why buy now...wait till its low. Buy low sale high right? IRA and money markets are driven by the market which is all over the place...plus you get to pay a yearly or monthly fee to the bank or some shmub who will never call or check in to tell you whats going on or to get out now... What are money market accounts bringing in now??? .0125%...no thank you.

If it was me I'd look at MUTUALLY HELD WHOLE life policy. Ohio National, Guarduan, New York life... guaranteed returns, very good liquidity(cash value within the policy...which you can use for that realestate investment), and your family will greatly benefit from the death benefit. Put your money to multiple uses...

Of course everyone has different circumstances and think diffrently. Personally i want guaranteed returns...4%+ and make better...ive got one policy making 6.8%. Plus the security of knowing your family will be taken care of if something happens to you. On top of that im putting my cash value to use on other investments.


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## Grassflatsfisher (Oct 3, 2007)

For you readers...go get the book "Becoming your own bank" by Nelson Nash. It will change the way you think about investing. I only regret not reading it 10 years ago. 

If you want to know who my financial planner is pm me.


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## dockmaster (Sep 27, 2007)

For 25grand you could get tits for the whole neighborhood!!




BIGKENNY said:


> thats really easy tits for my wife


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## Wild Froggy (Mar 2, 2009)

*What?*



Grassflatsfisher said:


> Realestate still hasnt bottomed out. Plus if its for investment you will be paying taxes on your rental income or gain on sale. Who knows what your tax rate will be in a few years...a quick look at history says that they wont go down anytime soon. Gold and silver are at their highest levels in history so why buy now...wait till its low. Buy low sale high right? IRA and money markets are driven by the market which is all over the place...plus you get to pay a yearly or monthly fee to the bank or some shmub who will never call or check in to tell you whats going on or to get out now... What are money market accounts bringing in now??? .0125%...no thank you.
> 
> If it was me I'd look at MUTUALLY HELD WHOLE life policy. Ohio National, Guarduan, New York life... guaranteed returns, very good liquidity(cash value within the policy...which you can use for that realestate investment), and your family will greatly benefit from the death benefit. Put your money to multiple uses...
> 
> Of course everyone has different circumstances and think diffrently. Personally i want guaranteed returns...4%+ and make better...ive got one policy making 6.8%. Plus the security of knowing your family will be taken care of if something happens to you. On top of that im putting my cash value to use on other investments.


Life Insurance? Are you kidding. Life Insurance is not an investment. A 6.8% return is awful. I would just keep my money in my pocket at that rate.


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## ammo angler (Oct 21, 2007)

Put it in a CD, IRA, or bank and forget about it. One day you will have a genuin reason to use the money and will be thankfull. The secret is...your outgoings should be less than your income ( a lot less) Easier said then done when presented with endless opportunities for irresponisible credit, and stupid shit to buy. Be the exception... save a little money......be solvent!

Good luck
Rich


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## timman (Oct 3, 2007)

First, make sure you've got your emergency fund covered. You need to have 3-6 months of living expenses in a multi-tier cash reserve. Think high yield money market, short-term bond mutual funds and maybe some muni's (depending on your tax bracket.) When it comes to bonds/bond mutual funds, look for short maturities. Interest rates can't go anywhere but up, and when they do, bond values will drop. The next step depends on alot of factors. What's your time frame? What's your tolerance to risk? If you're squared away on the emergency fund, and if you're still a few years from retirement, then look for actively managed growth or growth & income mutual funds with good long-term track records. I say actively managed as opposed to index funds. Index funds (like the ones that mirror the S&P 500) have been basically flat over the last 10-12 years and you need good fund managers that provide what's called Alpha. (In a nutshell, that's a measure of the value the fund manager brings to the table and indicates how they have performed against a relative index.) If you're not contributing to a Roth IRA, then max that out (assuming your income doesn't exceed allowable limits). You can own just about anything in a Roth IRA -- stocks, bonds, mutual funds, REITs, annuities, etc.) The great thing about a Roth IRA is that your investment grows tax-deferred until retirement, and then you can take distributions tax-free. Speaking of annuities, there are some great products available that provide you with the opportunity to participate in the market and you can add features that will protect you from down-side risk, lock in gains every year, and that will provide a guaranteed death benefit that would pass on to your heirs at your death. The knocks against annuities have traditionally been that they are expensive and you can't gain access to your funds if you need to (surrender charges.) The products that have come out the past few years have come a long way in dispelling those knocks.
Don't buy gold, as you would be commiting the sin of "buying high" at this point. Besides, if you factor out gold's run-up over the past year, it's only averaged about 2% (at best) return over the last 40 years. As for real estate, yeah, maybe if you are a "fixer upper" kind of person, you might be able to get a decent piece of property cheap, put in some sweat equity, and then flip it. But long term, real estate's historical appreciation doesn't compare to the stock market. 
Again, it all depends on what your personal situation is at the moment. I would recommend you get in touch with a financial planner and he/she can look at everything from a comprehensive standpoint and offer some guidance. If you are interested, PM me.


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## curtpcol (Sep 29, 2007)

good job Tim


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## Grassflatsfisher (Oct 3, 2007)

Wild Froggy said:


> Life Insurance? Are you kidding. Life Insurance is not an investment. A 6.8% return is awful. I would just keep my money in my pocket at that rate.


Your right....go put your money in a cd or money market account earning 1-2%. You wont be able to touch it till your 65 and then get taxed on your gains. Just think what those deferred taxes will be in 25-30 years...go back 30 years and see what the tax rates were then and what they are now...even on those IRA accounts your going to et taxed to death. I'll take my tax free dividends within my LI policy all day long and use my cash values to retire on and put towards other investments inbetween...be my own banker and pay myself back when i need to borrow and not a bank... plus keep getting the returns on the money within my policy as if i never borrowed it. Keep playing the old school of thought game and wind up like a lot of these people who have nothing now because they lost it all in the market or housing collapse. 

Its an investment strategy...not a "work for most product" like these institutions sale everyone on. Read the book i mentioned above. You will rethink your comment. 

Not saying the market is all bad....i just dont want to be market dependant. Recession proof is the goal.


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## lastcast (Oct 12, 2007)

BigK, whats "really easy tits"?

Skip


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## Shop Keeper (Oct 17, 2009)

I agree with Timman,( well thought and well put) I have seen plenty of people who have been able to take advantage of this current situation and absolutely make bad decisions. 25k sounds like a lot of money, but in the scheme of life it is not, but it is enough for most people to make an emergency fund, and get out of debt to some extent. But hey, if you wanna try and keep up with the Jones there are plenty of people who would gladly make your money theirs. (That's always easy)


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## markw4321 (Oct 4, 2007)

Real Estate (rental properties) could be risky with little to no return on investment over the next 10-15 years (maybe longer) in Pensacola area. 

I have a two bed room one bath home in Warrington, that I own free and clear (grew up in the house) . In my opinion it is basically a headache at this point in terms of a rental property. House is in good shape and a 2bedroom/ 1 bath. 

At this point in time it will rent for around $550 a month. Insurance + upkeep/repairs + renters who cannot or will not pay and who trash the place every lease period until they move out = zero positive rental income.

If you are thinking real estate rental property investiment in the local area your time horizen for return on investment, needs to be for the long term.

mark


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## Nat (Oct 10, 2007)

Do Not Buy Real Estate as an Investment

read this..............

http://www.martinarmstrong.org/files/A-Forecast-For-Real-Estate.pdf


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## HisName (Nov 29, 2009)

I am Diversified , and recommend Agricultural land.
I purchased over 100 acres in 2 areas of Molino as soon as Obama got elected because I knew what was coming.
31 acres will be left to my Children. the Taxes are $47 a Year [ Agricultural ] on that land.
This land has 2 Creeks , 1 is a spring that starts on my land and becomes a creek = Fresh Water for all the years to come.
The large creek starts as a spring in Walnut Hill. It has fish to eat if times get bad , and I predict they will.
the back of my property borders International Paper Land and I am over run with deer and Turkey . = Food
I say , you cant put your money in a better place than Gods Green earth.
A lot of people are Fleeing the crime of the city and it will get much worse! Land will only go up !!!!

the dollar will only go down , The money Market and CD's are terrible now.

I was getting 4.9% on a 15 month CD 2 years ago at penair

JMHO


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## ?MEGA (Jan 31, 2009)

i have most of my retirement monies invested in china/russia. it is has done real well so far


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## TravelingHoosier (Jan 19, 2008)

Verizon stock pays around a 7% dividend

Run a 7% stop loss or sit on it pretty close until you get some cushion built up.

I've been in and out of it a dozen times the last two years.. Made an excellent return on it to date and think, maybe, just maybe i've seen the bottom for a while.. Bought in at 24 the last go around and it seems to be staying well above that now and getting a great divvy.. I still have stop in place though in case it goes south
Verizon is not a great company, debt levels are high and it has some other issues, but it has huge, free cash flow and that looks promising for some time to come..

Microsoft is another stock i have been in and out of a lot also, the dividend is not nearly as good, but it's a great, solid company.. Just not cool or sexy...

Microsoft willl be a 2 or 3 bagger from these levels sometime in the future.. Plus the 
divvy..

good luck


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## Grassflatsfisher (Oct 3, 2007)

One thing about land...you can't make more of it. Whats here now is all we got.


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## HisName (Nov 29, 2009)

markw4321 said:


> Real Estate (rental properties) could be risky with little to no return on investment over the next 10-15 years (maybe longer) in Pensacola area.
> 
> I have a two bed room one bath home in Warrington, that I own free and clear (grew up in the house) . In my opinion it is basically a headache at this point in terms of a rental property. House is in good shape and a 2bedroom/ 1 bath.
> 
> ...


Mark I could not agree more. I just sold a house in all places " MayFair "wow was it a head ache and I was so happy to sell it to HUD for only $31K / appraised at $58K 

Your right , The Renters would not pay , It took 6 months to get them out , I had to pay the Judge , and the cop for each Visit to try to get them out. I could have hired a hit man for less.

No More renting for me. I can not tell you all the joys of Land Investment if you find the right land and enjoy your investment. I only have a Camper Trailer on the Land and a garage for my Tractor and ATV's , however it is a great get a way , 
The wife enjoys spending the weekend out there , it is a good investment , and fun. I say , Invest in Agricultural Land [ Mine is TIMBER Land BTW ]


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## ammolance (Jul 18, 2009)

pay off my 10 acres in Crestview......then just hope that someday i can sell it an retire!:beer:


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## Nat (Oct 10, 2007)

more reading on the subject


http://www.martinarmstrong.org/files/Staring-into-the-Abyss-7-31-2010.pdf



enjoy


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## AquaBlue22 (Sep 28, 2007)

Only buy real estate if you willing to be a landlord, 24/7. Good luck!


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## cabinlong (Dec 25, 2009)

Spend it on booze, fishing, and women. I guess you waste the rest


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## feelin' wright (Oct 7, 2007)

I would buy 25,000 dollars worth of Gerbils and then open up shop on Memorial Day. I could see it now 2500 chevy truck with a "Gerbil Man" vinly graphics on the side. Cut me in on the profits when this idea goes throught the roof.


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## Nat (Oct 10, 2007)

worth reading


http://www.martinarmstrong.org/files/Deflation-to-Be-or-Not-to-Be-08-05-2010.pdf


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## Mikvi (Mar 11, 2008)

Fast cars, fast women and booze. Just waste the rest


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## Dagwood (Oct 1, 2007)

How about this:

2010 TROPHY WHITETAIL DEER HUNT 290-300+INCH BUCK - eBay (item 390223717272 end time Aug-13-10 00:56:32 PDT)


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## Realtor (Oct 1, 2007)

Dagwood said:


> How about this:
> 
> 2010 TROPHY WHITETAIL DEER HUNT 290-300+INCH BUCK - eBay (item 390223717272 end time Aug-13-10 00:56:32 PDT)


is this one of those hunts that they put the deer in a cage and you shoot it? from the looks on the deers face, he kinda knows what coming he is trying to break his horns at this very moment on a tree stump.


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## KoolKat45 (Oct 3, 2007)

Hard to beleive folks pay that kind of money to hunt deer like that... What a shame. I would suggest to invest in someone who could explain what most of these people are trying to tell you what to invest in. :thumbup: I'm interested in this topic as I'm heading into a lump of money and would love to figure out a way to make a bit off of it but I have no clue. Would rather buy a house to live in rather then rent. Love the thought of land but all I've seen is so expensive it hurts to hear the price. The CD's and stock market are all foreign to me and dont have a clue and like I said I dont understand what most are saying when they speak of them.... Any how I'm not that bright but like this topic....


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## SteveH (Oct 3, 2007)

The first step in choosing an investment is to determine your time horizon. If you will need the money in less than 4-5 years, then you don't want to invest in the stock market or real estate. If you don't have an emergency fund and adequate risk management (insurance) in place, then you don't want a long-term investment. Decide what you want to do with the money and when you will need it. There is no perfect single investment for every $25k out there. Life insurance is not an investment. Before buying any type of annuity, check out annuitytruthdotorg. 
If you may need the money in the short-term, consider a laddered CD approach. An example of this would be to divide the money into $5k batches. Buy a 6 month Cd, a one year cd, a 1.5 year cd, a two year cd, and a 30 month Cd. Then, when the 6 month CD matures, reinvest it in a 30 month CD. Continue to do this with each one that matures. This way you end up with 5 CDs, that are each for 30 months. You will always have one maturing every six months, but you will be getting the 30 month interest rate. Also, if you need to spend one, you only lose the interest on $5k, instead of the entire $25k.


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## Dagwood (Oct 1, 2007)

That's a good idea Steve. What are 30 mo. CD's interest now?


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## SteveH (Oct 3, 2007)

CD rates are very low now, 30 month is about 1.3%. this approach is designed to 1. Not lose any money2. renew at higher rates as rates move up, instead of locking in for long time at the current low rates.


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## Grassflatsfisher (Oct 3, 2007)

SteveH said:


> The first step in choosing an investment is to determine your time horizon. If you will need the money in less than 4-5 years, then you don't want to invest in the stock market o real estate. If you don't have an emergency fund and adequate risk management (insurance) in place, then you don't want a long-term investment. Decide what you want to do with the money and when you will need it. There is no perfect single investment for every $25k out there. Life insurance is not an investment. Before buying any type of annuity, check out annuitytruthdotorg.
> If you may need the money in the short-term, consider a laddered CD approach. An example of this would be to divide the money into $5k batches. Buy a 6 month Cd, a one year cd, a 1.5 year cd, a two year cd, and a 30 month Cd. Then, when the 6 month CD matures, reinvest it in a 30 month CD. Continue to do this with each one that matures. This way you end up with 5 CDs, that are each for 30 months. You will always have one maturing every six months, but you will be getting the 30 month interest rate. Also, if you need to spend one, you only lose the interest on $5k, instead of the entire $25k.


You forget to add that on that 1% return your going to be taxed so now its down to .75-.85% return. Im not sure your even keeping up with inflation at that rate. So instead of making money your actually losing it.

I guess guranteed predictable growth(a lot more than 1%), tax free dividends, availabilty to your cash without penalties and taxes, and being able to leave your family a substantial amount of money just in case you die (which is inevitable) is a horrible investment. Get out of the box a little. If set up correctly Mutually Held whole life insurance can be a huge investment and/or investment tool when using the cash values inside the policy. Not to mention if set up correctly the money within the policy can be shielded from creditors. It might not be for everyone but it can be for most. Not an investment??? I'm not saying its necessarily the only thing you invest in but its definitely a lot safer and better than a market funded ira or letting the bank make 20% while you get 1% on a cd. A $25,000 1x premium could be huge in 20 to 30 years.

If nothing else and if you got direct deposit you can stick it in a Gulf Winds high yield checking account and earn 3.01% on the first $15k. If your married and your wife has direct deposit you can split it up into 2 accounts and get 3.01% on the full amount.


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## SteveH (Oct 3, 2007)

I was not recommending CDs to the OP. I was simply stating one short-term option. I also wanted to point out that it is a mistake to think that there is one perfect investment for everyone. I don't know anything about the OPs situation, goals, etc. If you want to talk very long term investments (like life ins)then you need to look at a low-cost stock mutual fund. Over long periods of time, like 20 years, stocks have done very,very well. I have never seen a life product that performed anywhere near the projections that it was sold on. I did mention that one should have their emergency fund and insurance needs covered before starting any type of investment program. In my opinion, mixing insurance and investments is a mistake. 
Life insurance products and annuities are designed by very skilled actuaries (the house). the INS co can't lose on these products, but the investor certainly can.


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## Grassflatsfisher (Oct 3, 2007)

SteveH;558 I also wanted to point out that it is a mistake to think that there is one perfect investment for everyone.
If you want to talk very long term investments (like life ins)then you need to look at a low-cost stock mutual fund. Over long periods of time said:


> 1st i agree. There is no 1stop that is perfect. Bad wording on my part. Maybe great or good would have been a better word to use.
> 
> My problem with mutual funds are that you cant access your cash. The returns can be good but you have to be careful when you are talking about fixed vs variable type annuties. I may be in one eventually but im going to be a lot closer to retirement before i would do so. Or at least have a big number that i wouldnt need to touch for a while. Thats just my personal situation though. I have seen some good 10 yr models that would allow for reinvestment after the 10yr period.
> 
> ...


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## SteveH (Oct 3, 2007)

WiTh a mutual fund investment, I can access my money in about two days. Check out Vanguard, which is a shareholder-owned company, if that is important to you. In my mind, that is like saying that if you own one share of BP stock, they are somehow looking out for your interests. Technically, it is true, but in reality it is not of much significance.
Before sinking money in a whole life policy, just take a look at the guaranteed return, calculate the internal rate of return (irr) and decide if it is a good rate for a long-term investment. I will be glad to run these calcs free of charge for anyone considering this type of plan.


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## lastcast (Oct 12, 2007)

Pay delinquent property taxes. In Al. it's 12% payback. If they don't pay it you wind up with the property.

Skip


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## masher (Oct 30, 2007)

Buy all the B P stock you can get your hands on.


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## younghooker (Oct 7, 2007)

Not real estate or life ins... if you have emergency cash $10k or so.. time horizon 5 years plus.. then thru a discount broker ( I use Schwab).. 5 no load mutual funds: $5k each: Yackman Focused Yaffx, Permanent Profolio PRPFX, Mathews Div. MAPIX, Pimco Bond PONDX, Janus JATTX.. that's diversified.


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## MastaBlasta (Aug 14, 2010)

I would buy a Benelli MR1. Maybe even a Sea Doo.


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