Just got a life insurance settlement, need a good investment plan

Discussion in 'Professional Trading' started by Ezra Fitch, Aug 9, 2007.

  1. ken__0

    ken__0

    Ezra it sounds like your in a great position
    definetly dont refi your house
    keep Reading your books but it will only get you so far
    Join a prop firm find someone smart and learn through hands on exp
    go slow dont put all your eggs into it leave your self some room to fail a few times.
    You never know you might find trading more of a learning experience then school.
    Take a break from school give trading a year if it doesnt work out you still got 100 grand left and can continue on with school.
     
    #11     Aug 12, 2007
  2. FINRA

    :D
     
    #12     Aug 12, 2007

  3. since you have at least 3 years of higher education ahead of you, I would suggest you concentrate on that. Before you do anything foolish, park the money in the CD for a year. With current 5.25% rate you should get around $9,000 at the end of the year, which translates to around $750 a month. That amount should help you live a financial stress free life while in college. Repeat this scenario for the next 3 years, finish your MA and then if you enjoy learninggo go for PhD ( ths way if nothing else, you could require people in your workplace to address you "doctor"). If not then try to invest the money for a higher than CD rates. You are a young fella, enjoy your college years, concentrate on your studies. Have fun! You are only young once! :D :D :D
     
    #13     Aug 12, 2007
  4. Buy a share of BRK A shares, hold for 25 years, retire.
     
    #14     Aug 12, 2007
  5. You're not going to retire wealthy at all with 60% in bonds. The bond market will be shit for the next 5-10 years in my opinion. I say go for 60% stocks and 40% in money market or some kind of dividend paying instruments. Try earning 15% or more a year by picking either select stocks or high quality mutual funds with decent track records. For the most part, the average advisor you find is going to park your money for you in some mediocre funds or money market, so I would avoid them like the plague.

    You could try to max out a 401k of your own choosing for tax purposes so you dont get taxed as much. So I suggest keeping a job or finding a part time job so you can save up your earnings tax free and parlay that into an early retirement.

    Think freedom 40. (I assume you are late 20s)
     
    #15     Aug 12, 2007
  6. STAY AWAY FROM LEVERAGED TRADING. YOU CAN LOSE YOUR MONEY QUITE FAST. LISTEN TO NO ONE WHO ENCOURAGES THIS. FEW WILL EVER MAKE MONEY DOING THIS.
     
    #16     Aug 12, 2007
  7. Good plan you have.

    Why not forget grad school for now and focus on getting a job with a reputable trading firm.

    If your living expenses are so scaled down, you can probably live on that interest for a long time.

    Use this as a fantastic opportunity. Many, if not all, of the traders on this site (and many who are not ) would love to have the ability to learn how to trade in this scenario.

    Or, do whatever else you want with your life. You will have achieved what true wealthy people have done: living offthe interest. Regardless of if your living on the slight, it's still freedom and the ability to make choices.

    Spend your excess time learning how to make more money. Then you can increase your lifestyle, become a philanthropist, or whatever your choose.

    My suggestion for trading is that I believe it has the most income potential over the longest period of time.
     
    #17     Aug 12, 2007