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/biz/ - Business & Finance

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1567613 No.1567613 [Reply] [Original]

I just inherited $10K. I'm thinking about just keeping it in a checking account as an emergency fund. It's not enough to do anything worthwhile with other than that. Am I wrong?

>> No.1567617

>>1567613
Go to the bank you were thinking of opening a checking account with and ask them this question; "If I only had $10,000 to invest what would you suggest I invest in?" Decide from there.

>> No.1567631

>>1567617
This is the worst advice ever. Don't do this OP. Do your own research.

>> No.1567635

>>1567613
If you have no emergency fund then yes. Then you look forward to emergencies more than you normally would.

>> No.1567639

>>1567613
Do some research on how to appropriately size your emergency fund. Depending on your circumstances and lifestyle, $10K may be too much or too little.

If, after determining the proper amount for your emergency fund, you have at least $3K left and if you have no other pressing need for that money in the next 5-10 years, then invest it in something life a Vanguard Target Retirement fund.

>>1567617
>Go to the bank you were thinking of opening a checking account with and ask them this questio
No. Modern banks offer brokerage services that make them a lot of money. They would love to steer you toward investments that earn them a lot of fees.

This is horrible advice, and you should legitimately feel bad.

>> No.1567640

>>1567613
thats $500 though

>> No.1567701

>>1567613
$10k isn't shit buddy. go put it all on red and then go back to figuring out a way to make money

>> No.1567713

Put it in an index mutual fund and forget it exists, whenever you get unexpected money, do the same. Could become an amazing retirement fund with little effort depending on how old you are

>> No.1567723

>>1567713
I'm 21.

>> No.1567725

>>1567613
Buy 1cr on poloniex, it's about to go skywards

>> No.1567775

>>1567613
Terrible idea. Put it in a good stock, you can sell at any time. Biglari Holdings (BH) is looking really good, and has been getting improved profits for several years straight. Couple that with a sensible CEO and you have a great business.

>> No.1567777

>>1567635
This

Are you working? Increase your Roth contribution

>> No.1567781

>>1567777
This is pretty accurate, but instead of putting it in savings put it in a good stock. Extra money should definitely go to a Roth IRA.

>> No.1567786

>>1567613
Buy a shit ton of ammo

>> No.1567803

>>1567723
Awesome, more time you have for your money to grow the better

>> No.1568050

>>1567777
>Roth contribution
Checked, but bad advice. You can only put earned income into a tax-advantaged account. Inheritance doesn't count.

>> No.1568182

>>1567713
The only advice you should consider

>> No.1568252

>>1567713
>>1567803
Why should I trust this though? There is no guarantee that it will just keep going up.

>> No.1568260

>>1567613

Pay off debt and don't spend it.

I know plenty idiots who have blown that much money in a very short amount of time.

If you haven't got 10k, try working and matching your 10k. Then you will appreciate how much it actually is.

>> No.1568304

>>1568252
There is no garuntee for everything, but there are stocks so incredible safe (like BH) that it is absolutely implausable that they would go down.

>> No.1568360

>>1568252
>>1568304
I mean that, when I look at the S&P 500, it's very high, so how could buying into it make me any money?

>> No.1568414

>>1568360
It goes higher silly man.

>> No.1568429
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1568429

Well you can start trading cryptocurrencies man, its no meme if you research it well and get in, get out at the right moments.

You could join a discord chat group dedicated to trading/investing in crypto currencies at https://discord.gg/KK63cHF

>> No.1568519

>>1567613

Buy a house
Rent it out to tenants

Profit

>> No.1568521

>>1568519
What house am I going to buy with $10,000?

>> No.1568527

>>1568360
invest everything in General Dynamics stock

>> No.1568530

>>1568521
nigger when you buy a house you usually dont drop 150,000$ cash on the table. 10k is enough to put down on a house though, then rent it out to millennials, lose all your profit in fixing the house, then lose it all when one of your tenants ends up being a serial killer

>> No.1568535

>>1568521

Depending on your financials you should be able to get a $200k home or less.

>> No.1568580
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1568580

>>1567613
1. Keep record of the inheritance for tax purposes. (Yes you should pay taxes on it)
2. 10,000 is plenty to do any number of things but they all involve different scenarios based on your current life situation.

>situation a: no emergency fund yet, have old loans that are generating a lot of bad interest
solution: keep a chunk of the 10k and pay off your worst interest loans/credit cards. It is difficult to salvage the use of investing if you have high debt to start.

>situation b: no emergency fund, no debt
safe solution: save about 3,000 dollars in emergency funds, invest rest in vanguard funds online, switch account options to receive online notices to waive account fees. Purchase 7,000 dollars in a regular investor account (not 401k) Most likely an ETF or Mutual Fund that is Total Stock Market. There is no simple strategy for when to pick the day to invest, but keep in mind that the price of the share is determined on stock market closing on a normal business day. I usually pick the time to buy in when the market is down a decent amount.

As to your questions, yes, even small amounts of money are usually worthwhile to invest once you have it set up and no checking accounts are pretty terrible at everything with the sole exception of paying bills or monthly costs. Brick and Mortar banks savings accounts are also not worth it.

If you need additional advice about Vanguard feel free to ask. Though setting up an account is fairly easy and Vanguard itself will assist on the phone if you feel like this would be a pain for you online.

>> No.1568589

>>1567613
figure out the index of the tax rate the banks use. see if you are able to get more than that. investing by yourself. case you dont find the best investment possible in a bank. Lending bitcoin on polo has a 0.02% to 0.05% return every 2 days with no risks.

>> No.1568600
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1568600

>>1568252

>There is no guarantee that it will just keep going up.

theres an entire century worth of data proving that stocks will continue to go up forever. it has to, or else the world will become a place you dont want to live in anyway.

>> No.1568601

buy 1 credit on poloniex

>> No.1568632 [DELETED] 

>>1568580
>Keep record of the inheritance for tax purposes. (Yes you should pay taxes on it)

(No you shouldn't.)

Inheritances are not taxable to the receipt. Any tax owed is owed by the estate, not the beneficiary, and will have been deducted before the distribution is made.

I understand that you mean well, but these are adult topics. Don't give advice about things that are beyond your knowledge level. Just lurk and read.

>> No.1568633

>>1568580
>Keep record of the inheritance for tax purposes. (Yes you should pay taxes on it)

(No you shouldn't.)

Inheritances are not taxable to the recipient. Any tax owed is owed by the estate, not the beneficiary, and will have been deducted before the distribution is made.

I understand that you mean well, but these are adult topics. Don't give advice about things that are beyond your knowledge level. Just lurk and read.

>> No.1568634

>>1567613
buy weed
sell weed
smoke some weed
and again

>> No.1568638

>>1568050
You can put up to as much as you earned that year according to taxes...

>> No.1568640

>>1568638
That's exactly what I said. You can only contribute to a 401k or IRA if you have earned income. An inheritance isn't earned income. So OP would have to have other earned income, and not have already contributed.

This is 4chan. Don't assume that everyone has earned income. At least half this board are college student (and lower) and NEETs with zero or nominal earned income.

>> No.1568659

>>1568429
this

>> No.1568699

I'm a 21 year old NEET. This was from a divorce and my dad is just gifting it to me "for having to deal with all of the divorce bullshit" so it's not even an inheritance, actually.

>> No.1568791

>>1568633
>The eight states that impose an inheritance tax include Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania and Tennessee.

You spoke too soon.

>> No.1569002

>>1568791
>You spoke too soon.
No I didn't. I said that any inheritance tax would be paid by the executor of the estate, which is true everywhere (including any of the states listed). Tax laws require that the tax be withheld from the distribution PRIOR to transfer to the beneficiary.

Unless the executor has committed tax fraud, my statement is 100% true: the beneficiary will owe zero tax.

>> No.1569015

>>1568699
You should move in with your mom and try to get your dad to buy more of your love

>> No.1569349

>>1567701

I now have $75,000

What do?

>> No.1569355

>>1567613
Invest in a diversified index fund, put a percentage in bonds in relation to how old you are (ie. if you are 20 put 20 percent in bonds)