What to do with $1000USD

September 15, 2009 8:43 AM

A charity gave me $1,000 USD they raised for me after a drunk driver wiped me and my motorcycle out. I am 56 yrs. old, sick from cancer and will be losing my job in December. I have little savings and will have to work at whatever my body lets me do, and probably lose my health insurance. I plan on selling my home and its contents and downsizing to a studio apartment. I have no credit card debt but hold two mortgages, both will be a wash at the sale. What is the best bang for my buck for this $1000 in this economy? A CD? Online savings account? Any suggestions?
posted by ~Sushma~ to work & money (14 comments total)

With little savings, you might want access to the money with little notice, which makes a high-yield online savings account the play over a CD. If you want to go to the other end of the spectrum, and potentially maximize your return on investment while still keeping it low-risk, you could invest in an S&P 500-based index fund. I don't think the market's near fully recovered. But given your health and financial issues, online savings seems the choice. I just worry that it won't outpace inflation unless the rates rise again.
posted by troywestfield at 8:56 AM on September 15

Sushma-
From your posting history it really looks like you're in sort of a spiral of despair and worry. I wish I could do something about that for you. I'm of NO HELP to you with what you should do for your money, but I want to really, really encourage you to seek community resources for your help with the rest.

I don't know where you are----you mention Virginia in an earlier post, but that part doesn't really matter. I want to seriously encourage you to start taking some steps to protect yourself and your health in the coming months----there's about a 90 day lag on medicare, for example.

Please feel free to memail me (don't e-mail, I never check that account) if you'd be willing to accept any assistance on that end. I might not be able to anything at all to help you, but sometimes knowing the right terminology can help you find what you're looking for.
posted by TomMelee at 9:06 AM on September 15 [9 favorites has favorites]

$1000 spent towards your education would probably pay the biggest dividend.
posted by KokuRyu at 9:14 AM on September 15

I am not a financial expert. But I would suggest using that money for whatever tools will help you find an occupation that brings in some income. For example (and it's just an example because I don't know what you do), if you were skilled with graphic design but did not own a good enough computer or necessary software, you could use that money to purchase a machine/application suite that would allow you to do freelance work. Or perhaps a certification in your field of choice that would make you more desirable to employers.
posted by katillathehun at 9:47 AM on September 15

I would park it in a high-yield online savings account, so that you can get to it within a few days, since it sounds like you don't have much in the way of cash reserves to cover unexpected problems.
posted by craven_morhead at 10:05 AM on September 15

I hope you losing your job is not due to your cancer. That could be illegal (if thats the case i would contact a lawyer).
posted by majortom1981 at 10:13 AM on September 15

My immediate reaction was to suggest that with a small savings and an unknown future putting the money in an easy accessible online account (ING or the like) would be the best for your money. The other possibility while you heal physically and spiritually would be see if there is a way to make the money work for you... and KokuRyu suggested education. However with the cost of cancer treatments, the money is probably best in a savings accounts for the unknown future.
posted by Frugalforlife at 10:43 AM on September 15

And Orange Savings account from ING will give you the best access to your money without fees and with high interest rate. Bankrate.com could help you compare if you want to confirm, but I think this conclusion is sound.

Investing in a blue chip stock is still reasonable, I think most would say. Open an account with scottrade and pay $7 to invest $993 in something like Caterpillar. Even a small return is likely to surpass the return of 1.20% from ING right now.

Those are financial ideas. Looking over your previous posts, I can't help but wonder whether you've contacted a lawyer? Daytime television is full of ads for local lawyers whose sole occupation is disability claims. It seems to me that cancer would qualify. If a lawyer tells you otherwise, perhaps you should keep searching for a lawyer who will help?

You might also want to consider using some of the money to buy a nice suit if you don't have one already. I'm not sure whether you are unable to work at all or just unable to work at jobs you've found so far. If its the former, nix the suit. If its the latter, that $1000 really would go the longest way if it were creating a job skill for you.
posted by jefficator at 11:05 AM on September 15

-I'm asking for an ADA accommodation for my job, but I am wiped out physically after work, and my quality of life is nothing after I take my pain medication. It is exacerbated by my work stress and the loathing for my job. I come home, put pj’s on, take a handful of narcotics, never eat anything worthwhile and sleep. Weekends are house work and taking care of my son's paperwork and medical care. Sometimes I get to ride the bike if I'm drug-free. Those are the good days.

-I have marketable skills, excellent skills actually, and may consider learning Spanish, thank you.

-Considered starting my own business from home, have a fully functional state of the art office and plenty of room to expand if I were to stay here. My credit score is close to 800 so I could get a loan now, while still employed.

-My cancer is slow growing and indolent, but increases approx. 1% a year in volume (blood mass), my main health issue is the fibromyalgia that accompanies it, and the feeling of helplessness at its incurability.

-Looked at an assisted living facility, I wonder if I would qualify for Medicade if I sold my home and lived there? Otherwise I think I would have to be indigent before I could apply.

-LOVE the online savings idea, but the purchase of a graphic arts software program is almost as valuable. I could do desktop publishing, but still need to consider health care. ALL excellent ideas.

-I may consider disability at some point but feel that it is giving up and letting it all get to me just when my life is really beginning for real. I have traveling to do and journaling and a drive to leave a worthwhile legacy.

-I’m open for any thoughts or suggestions, you are the cream of the Internet crop.
posted by ~Sushma~ at 12:12 PM on September 15

Hi again.
I wasn't necessarily recommending you go the disability route (until you need it, and maybe you never will). Around here, we've got programs that assist with everything from transportation (giving rides) to healthcare to federal programs navigation to education to peer support, etc.

There are a lot of fears and misnomers about medicare/medicaid and disability. One of them is that you must be out of work to make use of them. I'm not your agent and those are not my areas of specialty, but I encourage you to look into those options. I've personally got consumers receiving $2,500 a month injections for MS and Fibromyalgia, and they do NOT have insurance and they are NOT paying for it.

I'm sorry if I came across projecting that I feel like you need help. That's the opposite of what I want you to feel---I just want you to feel like you have options. So very many of the people who come to my program have waited until they couldn't walk, or they lost their vision, or whatever the case may be and then they really REALLY feel lost.

Here's to you though---you're looking at your options. You're 9 steps ahead of a lot of folks in your shoes.
posted by TomMelee at 12:50 PM on September 15

Are you physically up to riding a motorcycle again? If so (and you haven't already replaced the one that was totaled) get an inexpensive bike and ride. Assuming you still enjoy riding, that will do more for your quality of life than just about anything else.

Good luck with everything. It sounds like you are making the best of a bad situation. If you decide to go this route and need gear or anything like that mefi mail me and I'll ask around and see what I can scrounge up.
posted by thekiltedwonder at 3:55 PM on September 15

If you are going to go with the saving route, Amex Savings is 1.85% and Discover Bank is 2% (but I heard customer service isn't as great as Amex).
posted by vocpanda at 6:29 PM on September 15

I would set that money aside for my COBRA, in order to purchase health insurance for myself for at least a few months after the end of my job.
posted by croutonsupafreak at 7:28 PM on September 15

I think living alone is a bad idea. If you could rent a room from a compassionate person or family that might be a lot better, especially if you find someone who cooks and will let you pay them a fixed monthly price for your meals.

Or, if you can hang on to your house, do you have any rooms you could rent out? That could help pay the mortgage & maybe you could get someone who would handle the grocery shopping and cooking (for a discount on rent) so that you'd have something healthy to eat.

Eating better would probably help you feel a lot better, but I totally understand how hard it is to do that when you're already exhausted. That's why I think finding some sort of living situation in which someone else does the shopping/cooking for you would be ideal.

Do you qualify for any sort of short-term or long-term disability benefit through your employer? Ask your HR/benefits person. Also investigate whether your state has a temporary disability program.

Why are you losing your job in December? Are you getting laid off, and thus eligible for unemployment, or are you quitting due to health reasons, or what?
posted by Jacqueline at 8:51 PM on September 15