I inherited a house and it has a lot of problems so I sold it for 50k. im going to take 10k out for bills and things, but im wondering what I can do with the remaining 40k to profit somehow. It sucks because obviously I cant buy another house with it, but this is a 1 and done thing. I have health problems and will never have 40k at once again in life probably. I know its not a lot of money, but wondering if its enough to somehow make interest off of or?? I know nothing about stocks and the idea of losing my money makes me sick so im scared to go that route. I know nothing about anything financial or investments. Any ideas? if so, can you tell me what exactly i would need to do and what it could potentially yield?
Can I turn 40k into more safely?
byu/Suspicious_Bat_2908 inpersonalfinance
Posted by Suspicious_Bat_2908
5 Comments
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
It’s hard to say without more detail of your financial situation.
A safe bet is to put the money into a high yield savings account or a CD if you absolutely have no stomach for losing any money. This is not the most efficient way to generate interest and inflation will slowly eat away at the purchasing power of the money.
You can also put $7,500/yr of this money in a Roth IRA account and then invest in the S&P 500 for long term growth for retirement.
CD, HYS, or govt bonds are the only “safe” options that are guarabteed by the govt/FDIC.
A high yield savings account will give you interest.
You’re looking at one thing: What to do with $40,000. However the correct answer totally depeneds on your overall financial health. There are several factors that have to be account for.
Yes you can invest and grow this money, and in in 10 years it will be $70,000. However if you have debt, or no emergency account, or a Roth IRA, or a 401k, then those factors need to be considered. Ideally you will need to learn about these things and learn about your overall financial health.
Only then can the ideal decision be made.
Read and absorb [the flowchart](https://imgur.com/personal-income-spending-flowchart-united-states-lSoUQr2). These serves as an overall order of steps to take.