Investing $5000.00

[gavinmccallister]

Where would you put it?

[Broken Arrow]

You seem to have this fascination about what to do with a lump sum of money. I'm just curious, but why is this? And, isn't it more important to learn to save up towards that lump sum?

Nevertheless, how one would invest $5000 depends on what each of us want to accomplish first. Therefore, the answer should vary from person to person.

For example, I've posted up my student loans as my Public Enemy #1, and therefore, any and all available funds I can spare would be thrown at it, including that $5000.

For those that have credit cards or loans with higher APRs, the money would probably be better spent there.

Still, for others, it's best to be left alone in a HIS (High Interest Savings) account to create or bolster the emergency fund.

Although I'm not there yet, but after that, then I would start saving up for my next car, so I can buy it upfront. To do this, THEN I would use the CDs that I know you are particularly fond of.

After that, I may also use CDs to start up a separate fund on saving for a downpayment on a house, but that's also later on.

Alternatively, I may also use the money to fund an IRA. However, because I already have a 401k, I'd probably use it to save up for the car and house instead.

My $.02 anyway.

[Ima saver]

I have a land payment that I am anxious to pay off, so i would put $5000 as a payment on the principal.

[poundwise]

Straight to debt repayment for me.

If I was out of debt, it looks like the a down payment (or a good chunk of one) on a house.

If I was out of debt and had a house, then I'd put it in a Roth IRA or, if I had kids, into a 529 or similar investment to help with their education; dividing it between them.

[vsjhoc]

I don't have debt; already have a house; maxed out the Roth IRA; don't have kids.

But all is not rosy; I took a 75% pay cut to leave a career I hated for a job I love. I literally can't afford to do it for more than a year without living purely on Ramen and doing serious damage to the emergency fund (which already got hammered when I lost my job and was out of work for 4 or 5 months). So the cash would give me some breathing room ...