The wind fell. Now what?
January 3, 2012 12:00 PM Subscribe
I got a large bonus this year which will probably never be repeated.
After taxes, it was 26K. I don't have any immediate needs (no medical issues, etc), and I know next to nothing about investing. Given this economy, what should I do with it? Stocks? Bonds? Saving account? IRA?
posted by anonymous to work & money (19 answers total) 7 users marked this as a favorite
- I wanted to max out my 401K but someone screwed up (maybe me) and that didn't happen. So it's too late for that. I could, of course, buy an IRA. This would be attractive to me if it meant a tax break. Can one deduct all of what one puts in an IRA? Some of it? None of it?
- I have already donated a sizable amount to charity and would prefer to be selfish with this windfall.
- I am not a gambler. I am willing to gamble for pragmatic reasons (and I realize that all investing involves risk), but I'm completely uninterested in gambling for the sake of a thrill.
- I am okay with the money being tied up for a while, but I'd like to be able to get at at least some of it in case of an emergency, even if that means taking a loss.
- I'm 45, American, and I earn a middle-class salary, though I live in NYC, so you should adjust accordingly. I don't own a car or property (I rent an apartment) and I have no kids and no plans to ever have any. I have no significant debts.
- My credit rating isn't terrific due to some past mistakes. I am not looking for a way to correct it. It will correct itself over time. I just add this detail in case it's important.