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/biz/ - Business & Finance

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16631194 No.16631194 [Reply] [Original]

I am expected to receive an inheritance after the first of the year, it's only 10 grand but I want some advice from someone impartial to me to grow it.

Everyone keeps telling me to put it into CDs which seems to be a safe bet, but I won't be able to touch it in times of emergency.

I'd like to grow it to half a million before I turn 40, I understand that would involve some risky endeavors.

I was thinking of putting most in CDs, keeping $1K for emergencies in a regular savings account, and the rest in an aggressive investment portfolio.

>> No.16631206

DUDE JUST PUT 10K INTO A CD AND MAYBE YOU CAN BUY AN RV WHEN YOU RETIRE LMAO

>> No.16631232

Buy vinyl instead of CDs.

>> No.16631244

>>16631194
Bitcoin, unironically

>> No.16631249

>>16631194
Go all in LINK. $10k will get you roughly 5k. At $100 you’ll have half a million, cash out and reinvest into passive income streams

>> No.16631286

>>16631249
Whatever you do, don’t listen to this idiot

>> No.16631302
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16631302

>>16631194
Put it all in Bitcoin right now. It's going to 300k by the end of 2021.

>> No.16631328

the s&p 500?

>> No.16631365

>>16631249
>believing a premixed ERC token is reaching a 40-50 billion marketcap

>> No.16631375

>>16631194
Use 10% of it to buy credit default swaps and the other 90% in extremely out of the money LEAPS on tech stocks

>> No.16631381

>>16631365
You had two years. Two whole fucking years. Just buy the rope now and save yourself the time

>> No.16631403
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16631403

>>16631194
>I'd like to grow it to half a million before I turn 40

>> No.16631444

>>16631232
Kek

>> No.16631470

>>16631375
This. All in Jan 21 2022 Amzn 3000c, or if you’re a pleb do pypl

>> No.16631472

Don't put your money in something with negative net returns (after inflation).

>> No.16631605

>>16631194

Don't put it in CDs until there's a higher rate of return than now. While they are 100% safe, the rate of return will be lower than inflation because interest rates are low and are expected to stay that way for the near future.

If you're looking to get 500k before 40 you're going to have to be aggressive, that's basically what a normal person putting it in an index fund and leaving it alone would expect at the end of their careers on 10k. If you want something higher yield than CDs but not totally cucked like them I'd do dividend stocks right now desu.

>> No.16631618

>>16631605

Also it's not true that you can't touch CDs. You can in an emergency situation usually but you forfeit their gains.

>> No.16631747

>>16631605
yea, I looked into CDs, that's why I came here. Like $500 return after 5 years if I put in the whole 10 grand.

I understand I'd have to be aggressive and active, but I'm sick of being poor and I think this is my way out.

>> No.16631907

>>16631747

That's poor people's mentality dude. Don't fall for it. Even if you are aggressive you have to be rational in whatever investment choice you make. This board is full of get rich scams between penny stocks and the cryptos and their gains vaporize as quickly as they materialize. It's not wrong to speculate on them but you need to have the discipline to get out before they blow up and go to zero

>> No.16632130

>>16631194
>I'd like to grow it to half a million before I turn 40
make a time machine and bring you and your measly $10k back to 2016 and dump it all into bitcoin and take it all out in December of 2017. boom $5,000,000.
please just keep that money in case you get into a tight spot. it would be better used that way then literally risking it all for a sad $500k retirement fund. thats maybe 7 or 8 years of decent living if you already own your house

>> No.16632167

>>16631375
Sovereign or commercial CDSes?

>> No.16632190

>>16631194
Buy an entire bitcoin first then open a 3 or 5 year CD with the remaining funds and add 100$/mo to it.

>> No.16632192

>>16632130
So CDs would be the best bet to keep it safe?

>> No.16632313

A CD is the fucking worst investment possible, just slightly better than crypto scams.

Better off buying a total market index ETF like VTI. Hell, just dump it all into TSLA...it will reqch $500 by EOY.

>> No.16632419

>>16631194
>10k inheritance
How is the weather in Mumbai?

>> No.16632436

>>16632419
It's my share. My grandmother died, her kids got $100,000, her grandkids got $10K

>> No.16632505

>>16632192

CD's are the lowest risk, because its basically the same as having it in your bank account.

But they give you next to no money.

>> No.16632593

I'm just going to put it in a savings account till I figure something out

>> No.16633442

>>16631194
If you need liquidity, buy 2-year U.S. Treasury notes. It'll give you about the same rate of interest as a CD and if you need cash, you can probably sell them for about the same price you paid for them. Depending on interest rates, you could even make money.

As for trying to turn $10,000 into $500,000 by the time you're 40 years old, that's probably not going to happen because it implies a 21.6% CAGR, assuming you're presently 20 years old and have 20 years to compound. If you're that good at compounding, $500,000 will be pocket change to you by the time you're 40 years old. Of course, if we have a period of pretty high inflation, you may very well hit the $500,000 goal you seek but you'll find that $500,000 doesn't buy very much.

>> No.16633469

>>16632436
Sorry for your loss fren

>> No.16633511

>>16631747
For the portion of the money you're going to invest (i.e., the money not in a savings account or CDs or, my suggestion, Treasuries), your best bet is probably the Vanguard emerging markets fund, VWO, if you want a high rate of return without idiotic risk such as with cryptocurrency gambling.

Be forewarned, though, that an emerging markets fund is going to have higher volatility than a developed markets fund and you have to have the balls to not sell when prices fall. If the developed markets fall 50%, it's entirely possible (and perhaps likely) that the emerging markets will fall 70% or more. The key thing you have to remember is that an index fund is contains stocks in hundreds of companies and it is highly unlikely that all of them will go to zero, wiping you out.

In the event of a market crash, the emerging market fund will likely fall further than the developed market fund but during the recovery, it will increase in price at a higher rate.

In a world full where practically everything is overpriced, emerging markets offer decent returns over the long term (7+ years).

I recommended the Vanguard fund because of its low fees and low turnover. Actively managed funds can make better returns but the vast majority of them underperform the markets, have high fees, and put you at risk of permanent impairment of capital because they will not properly diversify their holdings. Just stick with the Vanguard fund and resist the greed-panic cycles; i.e., sit pat and let time compound the returns.

>> No.16633814

>>16631194
CDs are very low risk-low reward. Like >>16632505 said they're not much different from having shit in a bank account.

That being said, don't invest money you're not willing to lose. In other words, don't throw your whole inheritance out the window if you know you'll be pissed if a bubble bursts on your ass.

You're more likely to lose than you are to win when it comes to crypto. Don't be stupid, please.

Please.