I'm looking to invest into an investment fund(annuity/CD) with the best compounded interest rates short and long term options. Without doing any research yet, I would like to get some advice. I'm currently drafting out of my check into a tax deferred annuity, I think 4% interest rate. Should I invest more into that annuity or is there a better option out there? I just bought some cryptocurrency and now researching stocks. (Advice on stocks)
I have around $50,000 in capital to work with. My plans are to use $20,000 for real estate use (down payment on a multiplex,that I will live in) and $10,000 or so in cds/annuity/stock.
The debt I have is a truck note and $12,000 in credit cards. Should I pay off the credit cards or use that money towards other investments? I've read argument's for both ways. Thanks

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Posted by mtcheral

Member since Oct 2008

1941 posts

Posted on 7/22/17 at 5:58 pm to ValleyofDeath

First question is what interest rate you have on the truck and credit card debt but the first answer is probably pay off the credit cards first no matter what. And don't continue to add back on more credit card debt.

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Posted by Ric Flair

Charlotte

Member since Oct 2005

13664 posts

Posted on 7/22/17 at 5:59 pm to ValleyofDeath

Pay off credit card debt with the money you have earmarked for CD's or annuities. Invest in stocks, bonds, real estate only if you know what you are doing.

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Posted by Marlbud

Member since Jun 2017

964 posts

Posted on 7/22/17 at 6:21 pm to ValleyofDeath

Always pay off CC.

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Posted by Jag_Warrior

Virginia

Member since May 2015

4112 posts

Posted on 7/23/17 at 12:12 pm to ValleyofDeath

IMO, until you wipe out the credit card debt (that's a substantial amount vs. what you have saved - why not just pay it off now?), you shouldn't even be talking about making investments. Depending on how much the truck note is and what your income is, I might not worry about that.

As for the investments that you've mentioned, I'm not a believer in annuities, but your mileage may vary. And I believe that far too many people seem to be playing the cryptocurrency game the way the Dutch played with tulips. I'm not saying that you can't make money (clearly many have), but you need to have a VERY clear understanding of what you're investing in and where your money is being held (the security of these wallets, I mean). A CD is currently dead money. Someone brought up a play on prepaid debit cards through a firm called Insight. The money held outside the card is FDIC insured and the APY is 5% up to $5,000. I'm going to purchase a card next week and I'll report back in a couple of weeks as to whether I've had any headaches with it, before recommending it here.

I think that as a real estate play, an owner occupied multi family is a great idea... if you have the right mindset and approach. If that's who you are, the advantages heavily outweigh any disadvantages, assuming you buy it right and manage it properly.

Best of luck.