100k to collect interest.

[CYNDER_BLOCK]

If 100k dropped in your lap for retirement, what type of account will let you put that large of a sum in it and collect interest and forget about it?

 

[2ez]

If 100k dropped in your lap for retirement, what type of account will let you put that large of a sum in it and collect interest and forget about it?

If it's Qualified Funds (Previously in a 401k or some kind of Retirement account)..i would roll it over into a Roth....or consider an Annuity. But this is all contingent on when the funds will be used or needed.

An account will not allow you to collect interest.....you will have to place it in the account (Roth, Traditional IRA, Retail Brokerage or buy into a mutual fund direct just as an example) and then allocate the funds to a particular debt instrument (Stocks, Bonds, Mutual Funds, Treasuries.....etc).


if the funds were a gift........I would split the funds in half...and throw it into something long term. I would take the 1/4 ($25,000) and put it into something more intermediate.....and trade the last $25,000.....or use it for short term investing with a little more risk. There are firms that will allow as high as 80-1 margin buying power for intraday trading (buying and selling between 930 - 4pm) ....it drops to 20-1 for overnight positions (not selling before the close of the day). So t he $25,000 can get me $2mil in purchasing power. One can make a few hundred per day with this. With over 200 trading days per year........even at $100 per day.....you are making an extra $20k per year.......which would be darn near an 80% return on the $25k alone....


it's not easy to do......but probable.


Let me explain. I watch about 30 - 40 stocks on a regular. One of my favorites is the BlackBerry maker (Research In Motion....ticker: RIMM). If you look at the price range for the day, like yesterday, the high was $100+ and the low was $97+. That's a $3 trading range. There are days when the range is between $5 - $6 per day easy....but I only look for a $1 - $2 move in price.

The stock is trading over $100 now (good earning news this morning)........so what if I buy 200 shares ($20,000) near the low...........I would like to get out after being up $1 - $2......with 200 shares.....this would get me $200 - $400 for the day not including commissions.


So for my short-term trading....I like for Volatile stocks like this with a decent trading volume. I have some stocks that are under $10......and the same logic applies...I would just buy more shares.


Hope this makes sense.

 

[CYNDER_BLOCK]

I don't really have the time to trade online or they know-how for that type of work.

My friend had a death in the family and recieved 100k. I dont want to see him mismanage it so I was looking for something for him that he could just throw the money in and forget about it for 5+ years. Maybe a mutual fund like you suggested?

 

[2ez]

I don't really have the time to trade online or they know-how for that type of work.

My friend had a death in the family and recieved 100k. I dont want to see him mismanage it so I was looking for something for him that he could just throw the money in and forget about it for 5+ years. Maybe a mutual fund like you suggested?

First of your a good friend to look out for them like this. I had a buddy get into a car accident......and got a $60k settlement. He bought an old Grand National and wined and dined his girlfriend every week. He then had an aunt pass away...and got another $80k. In less than 1.5yrs....it was all gone.

If you never had money like that....it will go quick.

i would suggest a money manager then. If he does not know anyone...he can speak to those at his bank. having everything under one umbrella (one bank and not an account at the bank...and another at a brokerage) is not a bad idea.

 

[CYNDER_BLOCK]

Well in all honesty, would you trust one of the investment advisors at your bank vs an investment banker that works for a known investment company?

I just don't want the average joe smoe financial advisor that's not going to really look out for the interest of the funds.

Basically I would like for the Fund manager to have "skills".

Thank you for the help thus far.

 

[2ez]

How about this.....

Go and speak with a few different people, this way you have an idea on the services they provide and at what if any cost. I say maybe 3 - 5 people minimum.

make sure you get their full first and last name.....and then we can look each person up on the Finra (formerly NASD) website to confirm and verify their credentials and to make sure there are no adverse issues with the bank/brokerage....or the Rep.

 

[mrsoul]

to be on the safe side he could always just put it in a money market account and make about 5%. small return but 0 risk.

 

[CYNDER_BLOCK]

How about this.....

Go and speak with a few different people, this way you have an idea on the services they provide and at what if any cost. I say maybe 3 - 5 people minimum.

make sure you get their full first and last name.....and then we can look each person up on the Finra (formerly NASD) website to confirm and verify their credentials and to make sure there are no adverse issues with the bank/brokerage....or the Rep.

Never thought to do that! And a money market would be my last option but a useful one.