What would you do with $20k-$40k?
 

I'm going to Iraq in June for 18 months and plan on saving as much as I can. If I choose to reenlist while out there, that's an extra $15,000 (tax free) to bring home. I'm 27 years old, single, have no car payments, but am in around $15k in credit card debt. I'm going to pay that off montly while out there and bring home the rest. I was thinking either invest it in a mutual fund, put a big chunk down on a house, or buy a brand new sports car while I'm still young and able to enjoy it.. I might even put a little towards some of each. Just looking for some advice.

Get a house in a decent neighborhood and sell it in 18-24 months and reap the profits!! :)

You'll be 28-29yrs old, with much more money to your name - and you can use some for a bigger downpayment on a nicer sports car and the majority of what you have left towards buying another nicer home! :cool:

-Chike

P.S. While some may be wary of the real estate 'bubble', understand that well-maintained detached homes in nice areas are always going to increase in value over time. If you can't afford to buy one, look at purchasing a town home next followed by condos (or appts).

P.P.S. Keep your head down in Iraq and be safe!

1st. Pay off all debt.
2nd. Invest the rest in a Roth IRA or Roth 401K. You can liquidate without penalty it if you use the money as the down payment for a house, but once you are debt free, you will see how fast regular income becomes wealth.

Do not buy a sports car until you have saved the cash for it. They are a terrible investment. If you buy one, buy a classic that will actually increase in value.

Don't buy a house for the sake of spending money, take your time and find the most promising neighborhood and buy just outside of it. Then watch the value grow as the neighborhood improves into your area.

Doug

First stop and think about something, assuming you are paying 16% interest every single month you taking a wad of bills ammounting to $200 into the bathroom, do your thing, use the money as toilet papper, and flush as if this is perfectly normal :eek:...

Now, the question is where are you in life? Are you going to be a renter when you get home? If so, and you expect to live in the same area for a while then using the money as a down payment on a house would be a great investment! Be prepared for lumps in the housing market, it could go up or down, but if you listen to mhords advice on picking a property then you will stand a very good chance of coming out money ahead, if you can do your own fixing up then geting a fixer that isn't too far gone is nice and can lower your tax burden.

If you are willing to be a landlord then look into duplexes, often arround here they are 10-15% more than a single faimly home, but you can more than make that up in rent collected.

If you plan to move or can get really cheap rent then investing in some sort of finincial institution is wise, you can add to it untill it can or want to buy a house.

Oh yeah, don't forget to look at 2-4 year old sports cars when the time comes, could probably find one for less than half of a brand new one, is that new car smell really worth $15,000 or more?

I wouldn't mind a fixup house, I can get my hands dirty. Whatever I buy I'd be looking for something very long term though.. and yes, the new car smell is worth the extra money. So is knowing somebody before me didn't molest the car because it is afterall a sports car. I was thinking something along the lines of the new Camaro or Corvette.

I would spend them on female escorts :D :D

you know, there was always something i liked about you! :D :D :D

I thought the correct answer was, "Two women at the same time".

I would immediately veto the mutual funds, unless that credit card debt is at 0% APR for the time being.

Sports car is fun, but definitely not a prudent way to spend money for a penny-pincher. I would go for it, but I would not recommend it as financial advice to someone else. Finding a classic won't help that; driving it normally will destroy any potential value, and keeping it in a heated garage will net you a return that's less than inflation.

As financial advice, I'd either pay off that credit card debt pronto or possibly look towards a new house, but flipping a house carries risks, just like any other way to make money.

Agreed. Once you pay that off you'll have more money for toys! :)

buy a Lotus Esprit:D

My parents are going to be paying off the debt with my paychecks while I'm deployed, and I plan on saving the rest. I'll most likely end up marrying my girlfriend and getting a house with her.. that will cut the mortgage in half. I may end up marrying her before I go because that's an extra $700'ish a month for separation pay :eek:

Fixed it!!

buy a cooler fulla brewskis a lawn chair and strippers for a month.....well ya asked didn't ya??

Tom(it would be a pretty cool month)