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$25,000 is enough money that this may not be a simple answer.
There are financial advisers who can look over your total arrangements and help you make decisions that will maximize your returns, be it through a mixture of investments, tax deferring ira's, real estate or other products.
Personal finance is a complicated enough picture that you just might not want it all in one basket.
Do you know any people who might have used a financial advisor, so you can get a referral to a good one in your area?
What is your level of risk? Do you want any in stocks or would you feel more comfortable with it all in secure government bonds?
A Financial planner could be a big asset to you in this case.
And remember, only take on the level of risk that you feel comfortable with.
Great point, in fact that is exactly what my planner does with me - determine risk. Although with enough research I could probably determine it myself, this shortens the process.
Furthermore, to then select the best product for a particular risk level, well, way too time consuming researching that - I frankly wouldn't know where to begin, nor have the inclination.
As Edison once said (hmm, was that Edison??) why should I learn how to spell when I can hire someone who knows how!
HI,
I do agree with talking with a Financial Advisor, maybe one where you do your banking.
You might also consider a 6 months' CD, which in our local area, in now paying 5% interest.
I would definitely talk with a Professional, not just investing in stocks, etc, online, or over the phone, until you do.
Best of luck.
or a cpa... you also need to consider tax consequences.
is this money through an estate? can you disperse it all at once or over a few years?
my suggestion is one that you may not be interested in, as it takes more personal work and it can be time consuming, but can also pay off well if you are willing to do the work and be patient.
this money could be used as a down payment and fix-up money on a house for rental property or for resale. ive done this (rental) and have friends who do also. the biggest issue here is you dont just go buy any house and rent it or sell it. you need to know the market well, have a defined plan in place, have the time to oversee the property. it takes time and money... but if you buy right you can make out handsomely. my friend bought a property for less than 30,000 cash and then another 25,000 collateral and in two years turned a renovated refridgeration bldg into 100,000 profit after sale. it bought her house off, her truck off, and placed a little money into a savings acct.
but hers was a really special case of the right property and the right plan.
another person weve worked with just turned 30,000 profit out of the sale of a rental that she put less than two years into while working another job. but again, shell not buy 99 houses to buy the one that fits her model well.
weve done rental prop. as well and it can be great. but you need to have knowledge on the front side and be willing to work for the money.
just an option that i didnt see mentioned when i glanced through the other posts.
First, a CD paying 5% does not qualify as quick growth.
I do agree with consulting a financial planner, but you need to be very careful in doing so. Financial Planners fall into two basic categories, Reps and independents. Generally an independent will charge you a fee for their services. A Rep, is more likely to make their money from commissions for selling you investments. Therefore, reps are more likely to be concerned with selling product then providing you a service, while independents may be expensive and will eat up a part of that $25K.
As suggested, you need to determine your risk tolerance. You may be able to find investments with a potential of over 20% short term growth. However, such investments may carry a higher risk of losing all or part of your money.
The key issue here is how quick. If you are willing to invest for the long term, you should be able to see average growth over 10-20 years above 10% with minimal risk. However, short term gains of 10% or more will be riskier.
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