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Jason S · 08-23-2007, 05:15 AM

fool.com is the best thing out there for controlling your own investments. Talking with wealthy people will also help--again, fool.com forums will be incredibly helpful for you.

A few other things to think about:

1. Mortgage debt is the cheapest debt around. Plus, you get to deduct the interest you pay on your mortgage from your taxes. Before you make the assumption that no debt is best, run the math on a mortgage/home equity line. (Especially if you've got other debt elsewhere, like a car loan or credit cards.)

2. Investing in a business is risky. The SEC accredits investors (known informally as "angels) based on these criteria. You're not yet qualified to be an accredited investor; that's not to say that you can't invest, but you should seriously consider whether you can tolerate the associated risk.

3. What's your timeframe? Investing in the general market will grow your money more surely, but more slowly, than picking individual stocks. If you want to stick with funds, you can also look into an IRA, which will grow your money tax-deferred (which means it will grow w/o capital gains taxes being taken out each time you shift the composition of the portfolio), but will make your money untouchable until you retire. If you have kids (or plan on them), 529s will let you grow your money and use it tax free for their college education. (If you pull your money out later for non-education purposes, you pay the deferred tax... still not a bad deal.)

4. Do you WANT to start a company? Starting a growth company b/c you have the funds to do so can be very dangerous... growth companies require every bit of patience and nurturing and care as a real baby does... can you imagine how a kid would turn out if born to parents who said, "Hey, we got the means, why not have a kid?" Businesses obviously need funding, but ask any investor what they look for in a growth opportunity and they'll tell you they want a CEO/principal with passion, vision, purpose, and direction. They want someone passionate about the business!

5. Play golf. Cliche but true: if you get yourself onto a golf course, you'll interact with plenty of people who can--and will--help you. Many of them are dealing with the same issues as you. (If travel is an option, head down to AZ or FL during the winter and play down there with the snowbirds.)

Hope this helps!

08-23-2007, 05:15 AM	#8 (permalink)
Jason S Member Join Date: Mar 2007 Posts: 73	fool.com is the best thing out there for controlling your own investments. Talking with wealthy people will also help--again, fool.com forums will be incredibly helpful for you. A few other things to think about: 1. Mortgage debt is the cheapest debt around. Plus, you get to deduct the interest you pay on your mortgage from your taxes. Before you make the assumption that no debt is best, run the math on a mortgage/home equity line. (Especially if you've got other debt elsewhere, like a car loan or credit cards.) 2. Investing in a business is risky. The SEC accredits investors (known informally as "angels) based on these criteria. You're not yet qualified to be an accredited investor; that's not to say that you can't invest, but you should seriously consider whether you can tolerate the associated risk. 3. What's your timeframe? Investing in the general market will grow your money more surely, but more slowly, than picking individual stocks. If you want to stick with funds, you can also look into an IRA, which will grow your money tax-deferred (which means it will grow w/o capital gains taxes being taken out each time you shift the composition of the portfolio), but will make your money untouchable until you retire. If you have kids (or plan on them), 529s will let you grow your money and use it tax free for their college education. (If you pull your money out later for non-education purposes, you pay the deferred tax... still not a bad deal.) 4. Do you WANT to start a company? Starting a growth company b/c you have the funds to do so can be very dangerous... growth companies require every bit of patience and nurturing and care as a real baby does... can you imagine how a kid would turn out if born to parents who said, "Hey, we got the means, why not have a kid?" Businesses obviously need funding, but ask any investor what they look for in a growth opportunity and they'll tell you they want a CEO/principal with passion, vision, purpose, and direction. They want someone passionate about the business! 5. Play golf. Cliche but true: if you get yourself onto a golf course, you'll interact with plenty of people who can--and will--help you. Many of them are dealing with the same issues as you. (If travel is an option, head down to AZ or FL during the winter and play down there with the snowbirds.) Hope this helps!