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What To Do With $10,000

17 October 2010 3 Comments

If you’ve managed to save up $10,000 or get some sort of windfall gain, what do you do with it?  The stock market is scary.  Savings accounts return a negative return after inflation.  What would you do with ten large?  Here are my thoughts…

Liquidity is of big importance.  If you don’t have any savings or emergency funds, then most of this should just be put in a savings account and be labeled as emergency funds.  If you’re inclined, maybe put $1,000 of it into silver american eagles to hedge the other $9k against inflation risks.

If you have a bunch of savings and a fully-funded emergency fund, you might consider putting the entire $10,000 into a basket of precious metals.  Again this is a hedge against your cash savings losing purchasing power.

If you have a bunch of cash and a bunch of gold, then what?  Well, maybe you should fund your Roth IRA for the year, and then put the other half of it into some alternative investments.  Maybe a couple guns that will go way up in value should inflation hit or laws be enacted making it tougher (or more expensive) to buy certain guns.

Lastly, if you’re rolling in it, maybe you want to put the $10k towards a nice, used boat or something.  Your call.

$10,000

$10,000

3 Comments »

  • Tom said:

    I'm curious, since you seem to be concerned with maintaining purchasing power (through precious metals), what do you think of real return bonds?

  • Gold bug said:

    There is risk in metals…. Listen to AM radio much??? American eagles lololol

  • Seth said:

    With $10,000, you can achieve 12% returns by lending it through peer to peer lending. there are high quality borrowers who don't want to borrow expensively through the bank, and investors that want to get high returns without the volatility of the stock market.

    This article explains more about it:
    http://www.patientcashflow.com/2012/07/23/alterna