How would you invest $10K?

[her209]

I'm currently sitting on $10K cash. Want to invest this into a down payment for a condo in SoCal within the next 5 years.

 

[Dr. Detroit]

http://forums.anandtech.com/messageview...atid=38&threadid=1924081&enterthread=y

Asked earlier today...............

 

[FoBoT]

what do you mean "within" 5 years

you need to be able to liquidate it anytime during the 5 years? or you will definitely not need the cash until after 5 years

 

[her209]

Originally posted by: FoBoT
what do you mean "within" 5 years

you need to be able to liquidate it anytime during the 5 years? or you will definitely not need the cash until after 5 years

Sorry for confusing language. I want to build up the savings for a down payment after 5 years.

 

[mrchan]

What kind of down payment are we talking about here? You want to turn 10k into 100k? Condo's in Socal are in the 500k range aren't they?

 

[her209]

Originally posted by: mrchan
What kind of down payment are we talking about here? You want to turn 10k into 100k? Condo's in Socal are in the 500k range aren't they?

They will be in 5 years I assume.

 

[ponyo]

bet it all on black and repeat. After about 5 wins, you might have a enough for the downpayment. Also remember the 10k rule in cashing out at the casino.

 

[Slew Foot]

Theyll be dirt cheap in 5 years, especially in San Diego. Build yourself a CD ladder for some decent, secure gains.

Personally, I'd buy puts on margin but my tolerance for risk is extremely high.

 

[chuckywang]

5.37% APY at Countrywide Bank 3-month CD.

 

[her209]

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

 

[Dr. Detroit]

Originally posted by: her209

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

Yes, you will be paying taxes on the interest you earn. Only way to get out of paying taxes is to invest in in tax free Govt/Muni bonds.

 

[Baked]

Double down on Ace & Ten at the black jack table.

 

[intogamer]

Originally posted by: Fmr12B

Originally posted by: her209

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

Yes, you will be paying taxes on the interest you earn. Only way to get out of paying taxes is to invest in in tax free Govt/Muni bonds.

Wait... does that mean ING/HSBC etc. will be taxed also?

 

[Zugzwang152]

Originally posted by: intogamer

Originally posted by: Fmr12B

Originally posted by: her209

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

Yes, you will be paying taxes on the interest you earn. Only way to get out of paying taxes is to invest in in tax free Govt/Muni bonds.

Wait... does that mean ING/HSBC etc. will be taxed also?

why wouldn't they be?

 

[dafatha00]

Originally posted by: intogamer

Originally posted by: Fmr12B

Originally posted by: her209

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

Yes, you will be paying taxes on the interest you earn. Only way to get out of paying taxes is to invest in in tax free Govt/Muni bonds.

Wait... does that mean ING/HSBC etc. will be taxed also?

You report the interest that you earn on your 1040 when you file your taxes.

 

[her209]

Originally posted by: dafatha00

Originally posted by: intogamer

Originally posted by: Fmr12B

Originally posted by: her209

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

Yes, you will be paying taxes on the interest you earn. Only way to get out of paying taxes is to invest in in tax free Govt/Muni bonds.

Wait... does that mean ING/HSBC etc. will be taxed also?

You report the interest that you earn on your 1040 when you file your taxes.

Adding to that, IIRC, if you earned less than a certain amount in interest (I think it was $650), then you don't have to report it.

 

[MikeO]

How would you invest $10K?

Quality coke, cut it and profit. Why wait 5 years?

 

[sniperruff]

Originally posted by: her209

Originally posted by: dafatha00

Originally posted by: intogamer

Originally posted by: Fmr12B

Originally posted by: her209

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

Yes, you will be paying taxes on the interest you earn. Only way to get out of paying taxes is to invest in in tax free Govt/Muni bonds.

Wait... does that mean ING/HSBC etc. will be taxed also?

You report the interest that you earn on your 1040 when you file your taxes.

Adding to that, IIRC, if you earned less than a certain amount in interest (I think it was $650), then you don't have to report it.

IIRC you'll have to report anything over $10. it'll be listed as your interest income.

but if you're looking to turn $10k into $100k in 5 years... good luck. you'd be lucky if you can turn $10k into $20k... you'd have to gain about 15% each year.

 

[her209]

Originally posted by: Naustica
bet it all on black and repeat. After about 5 wins, you might have a enough for the downpayment. Also remember the 10k rule in cashing out at the casino.

1) What's the 10K rule?
2) Large sum of money = confiscation?

 

[her209]

Originally posted by: sniperruff

Originally posted by: her209

Originally posted by: dafatha00

Originally posted by: intogamer

Originally posted by: Fmr12B

Originally posted by: her209

Originally posted by: chuckywang
5.37% APY at Countrywide Bank 3-month CD.

Do I have to pay tax on the earned interest even if I put into another CD right after it matures or does would I pay tax on the total earned interest after I "cash" out?

Yes, you will be paying taxes on the interest you earn. Only way to get out of paying taxes is to invest in in tax free Govt/Muni bonds.

Wait... does that mean ING/HSBC etc. will be taxed also?

You report the interest that you earn on your 1040 when you file your taxes.

Adding to that, IIRC, if you earned less than a certain amount in interest (I think it was $650), then you don't have to report it.

IIRC you'll have to report anything over $10. it'll be listed as your interest income.

but if you're looking to turn $10k into $100k in 5 years... good luck. you'd be lucky if you can turn $10k into $20k... you'd have to gain about 15% each year.

Hmmm... I could have swore I read that somewhere, but now I can't find any references to it.

 

[her209]

Originally posted by: her209

Originally posted by: Naustica
bet it all on black and repeat. After about 5 wins, you might have a enough for the downpayment. Also remember the 10k rule in cashing out at the casino.

1) What's the 10K rule?
2) Large sum of money = confiscation?

Bump for the 10k rule.

 

[Vilica]

Originally posted by: her209

Originally posted by: her209

Originally posted by: Naustica
bet it all on black and repeat. After about 5 wins, you might have a enough for the downpayment. Also remember the 10k rule in cashing out at the casino.

1) What's the 10K rule?
2) Large sum of money = confiscation?

Bump for the 10k rule.

Casinos have to report any cashouts over 10k. So you get more than 10k in cash, and they need to fill out a 1040 form. Done to prevent money laundering etc.

 

[her209]

Originally posted by: Vilica

Originally posted by: her209

Originally posted by: her209

Originally posted by: Naustica
bet it all on black and repeat. After about 5 wins, you might have a enough for the downpayment. Also remember the 10k rule in cashing out at the casino.

1) What's the 10K rule?
2) Large sum of money = confiscation?

Bump for the 10k rule.

Casinos have to report any cashouts over 10k. So you get more than 10k in cash, and they need to fill out a 1040 form. Done to prevent money laundering etc.

But you can do multiple cashouts of 10k each right?

 

[Eeezee]

Progressive betting FTW

If you actually work out the odds, the house will lose over a large number of bets if you employ a progressive betting strategy.

 

[her209]

Originally posted by: Eeezee
Progressive betting FTW

If you actually work out the odds, the house will lose over a large number of bets if you employ a progressive betting strategy.

That requires deep pockets (which I don't have)