what would you do with 20k cash

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ilmostro99

Petty Officer 2nd Class
Joined
Apr 18, 2008
Messages
120
Re: what would you do with 20k cash

mthieme said:
Whew, Thank you. For a while there I thought everyone was taking the fun out of daydreaming.:D
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Well, I thought the mods would disapprove if I posted my first thought, which was Vegas, Hookers and Booze :D

Erik
 
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DJ

Guest
Re: what would you do with 20k cash

Invest, Invest, Invest in devalued stocks. The market will never get to ZERO.

If it does, only those with the most firepower will survive. Trust me, it won't get to that point.

In the long run, those that buy today will prosper-tomorrow.
 
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beilwing

Seaman Apprentice
Joined
Jun 25, 2008
Messages
34
Re: what would you do with 20k cash

Dave Ramsey would tell you to pay all debt except the house, then set aside an emergency fund equal to three to six months of living expenses, then invest the rest into Mutual Funds and retirement. How the heck do you get a boat Dave? Isn't that an emergency?
http://www.daveramsey.com/radio/home/
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Dave is the man!!

Unfortunately the past two years we have not pratced what he preaches. We have turned a corner and are now on rice and beans;) trying to knock out debt.
But for the original question, I think I would buy stock in one of these failing investment banks, that bailout is going to go through, then watch those stock raise back up. Hang out for about a month or so. Sell the stock and ask myself what i would do with 50k.

Then it's time for the trip to vegas:D:D:D
 
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salty87

Commander
Joined
Aug 12, 2003
Messages
2,327
Re: what would you do with 20k cash

paying down debt at 6% is similar to earning 6% but the problem nowadays, and maybe going forward, is that you won't be able to get anymore financing at 6%. you may not need more financing in the near future, your call. if you do, expect it to be higher.

there are lots of bargains in the market compared to that last 2 years or so. again, depends on your investment timeline.

you could put some of the money into your house. depending on your local market/home values, could be a decent return to you. not to mention, getting to enjoy the improvements.

i'd avoid mutual funds for the time being. there are plenty of good stocks to look at, no need to have a manager trading the fund messing things up. the bond markets are all messed up too, has a way of affecting equities.

right now, smart money is flocking to safety. because of that, it's too late to get decent returns on those investments.
 
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dave11

Lieutenant Junior Grade
Joined
Dec 2, 2007
Messages
1,195
Re: what would you do with 20k cash

Put the money on the house. The last $10K will go quickly. Don't worry about tax ramifications. Get your house paid off, especially now. When it is paid off, put the payment amount into a savings account. That will serve as your escrow account for taxes and insurance. The balance can go for your 3 to 6 months of living expenses as per Dave Ramsey. Also get your wife to one of his seminars. At least get her to read one of his books.

Then go buy a new boat!
 
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krisnowicki

Lieutenant Junior Grade
Joined
Jul 11, 2007
Messages
1,172
Re: what would you do with 20k cash

buy stock in good non sub prime lending mortgage companies. Bank of America and National City Mortgage for example. these banks are not bailout dependant and will survive. But because they are banks you can get them dirt cheap. I got Natl city at .80 two days ago and now it is over a 1.8 wish i had the 20 grand then cuz I would have 50 now :)
 
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