How would you invest $100000?
July 7, 2008 7:43 PM Subscribe
About $100 000 has been transfered to me, and I don't know how to properly invest it.
posted by anonymous to Work & Money (38 answers total) 18 users marked this as a favorite
For various reasons, I am now in charge of about $100 000, cash. Problem: I am 21 years old and I know absolutely nothing about investing on this scale.
Can anyone give me some advice on how to properly invest this much? I already have a discount brokerage and savings accounts holding about 30 grand of my own money, so I'm not completely helpless, but I've never had to even think about this many figures before. I'm terrified that I'm going to mismanage this situation into disaster.
Okay, so details:
-I live in Canada. My job doesn't offer any sort of investing plan or anything like that.
-I want this money to grow. At minimum, I would like to "keep up" with what other people do (I'm imagining this is around 7-10% growth per year, is that correct?)
-I don't want to spend any of it for the foreseeable future.
-Tax! Please tell me about how to deal with tax.
-I have a fairly low risk tolerance
-Diversification is important to me. Simplification is not really, although of course it's welcome.
-Property is out of the question. I spent most of last week thinking about buying a Playstation 3. I most certainly cannot handle owning land at this juncture in my life.
-I really don't want a financial advisor. Self management is important to me.
-I have established accounts at TD and ING Direct.
So basically, AskMe, I think I am asking how you would choose to invest this money, given these parameters. Please hold my hand and treat me like an idiot, since I am.
Any help would be much appreciated. Thanks!