Got a financial question

RedGlitter · Post by **RedGlitter** » Sat Dec 08, 2007 5:06 pm

I have won a settlement in the Eli Lilly class action suit for diabetes. I am not savvy with finances. I do not take risks with money, don't gamble, know nothing about stocks or investing. By the time the attorneys get their chunk of my award I'm looking at approximately $100,000.

1. I would like some information on how and where to find a trustworthy financial advisor. Should I go through the bank or use someone like Edward Jones?

2. What can I do with this money so that I can make it work for me? How can I invest it so that I will get extra income every month? If I did that, what kind of amount am I looking at if I chose to invest $80,000 for example?

3. Should I divide the amount between two or more banks instead of putting it all into one?

4. What is the least risky way of investing this money (not in stocks or land) with the bank?

5. What's a good interest rate?

6. Should I be looking at CDs, or some other form of investing?

I'm looking for any kind of suggestions from people who know about this kind of stuff. My goal here is to stretch that money so it lasts as long as possible and so that my dad and I can live a little more comfortably. I know it's gauche to talk about money and I apologize for that but I need some info. Thank you.

abbey · Post by **abbey** » Sat Dec 08, 2007 5:11 pm

Who's Edward Jones?

RedGlitter · Post by **RedGlitter** » Sat Dec 08, 2007 5:14 pm

abbey;736673 wrote: Who's Edward Jones?

It's a financial advising company. It might only be in the US, I'm not sure.

WonderWendy3 · Post by **WonderWendy3** » Sat Dec 08, 2007 5:15 pm

abbey;736673 wrote: Who's Edward Jones?

A financial advisory Company over here in the States, there is also a company called Raymond James

G-man · Post by **G-man** » Sat Dec 08, 2007 7:05 pm

That must be the Zyprexa settlement? I haven't worked for either of those companies... be careful who you go with, though... and CD's typically are better than just putting it in the bank, but it depends on the market and it depends on what you wish to do with it, really... if you don't know stocks I'd invest it in something fairly safe that is managed by experts (Mutual Funds)and they aren't monkeying around with it every day or so. Also, make certain they are well diversified. For example, when returns on stocks and mutual funds are high, returns on bonds tend to be low and vice/versa. If you're spread out among those then you won't lose everything.

Some questions to ask yourself:

1) What are your goals?

2) When will you want to access these funds?

3) What is your risk tolerance?

It's a good idea to check out a few financial websites that offer free online tools such as you may find here: Clickety-click

[EDIT] Here's one that has everything... if you invest, you're going to want to learn as much as you can... and don't believe everything everyone tells you, especially if you focus on stocks... and with Mutual Funds, you'll still need to learn a thing or two and keep an eye on the market regularly I check mine throughout the day... this link is for MorningStar. It's chock full of everything you need to know to get started. Linkety-link

Lon · Post by **Lon** » Sat Dec 08, 2007 7:47 pm

I am a big fan of "Vanguard" & "Fidelity". Both companies do not have salespeople, have the lowest costs in the industry and have excellent on line tutorials.

If your real main goal is income with safety of your principal, take a look at Vanguard's Prime Money Market Fund (Google VMMXX) or a Goverment Security Fund (Google VFIIX) or check out both at Vanguard.

RedGlitter · Post by **RedGlitter** » Sat Dec 08, 2007 8:36 pm

G-man, Lon, thank you both for your advice.

Yes, it's for Zyprexa. Eli Lilly settled for $690 million and no admission of wrong doing. There were about 8000 applicants.

Patsy Warnick · Post by **Patsy Warnick** » Sat Dec 08, 2007 10:07 pm

Red

I would start looking into different financial avenues before your awarded.

Its the Tax angle - anything you can do to avoid paying taxes on this award.

Make appointment to discuss the option from a variety of Companys.

Bank - Tax expert - than a Financial institute

A Tax Expert would be by 1st visit - I mean expert, they would be able to give you the best advise to avoid taxes - whether you invest into annuity - stocks - bonds.

Congrats to you - depending on what you want out of this $$ will determine the best route to stash it in different areas..

Just avoid the taxes..

Patsy

kayleneaussie · Post by **kayleneaussie** » Sat Dec 08, 2007 11:03 pm

I would go to a financial advisor

Patsy Warnick · Post by **Patsy Warnick** » Sat Dec 08, 2007 11:11 pm

Red

discuss this with all of them - tax man - financial advisor - all of themstart now..

Patsy

Joe · Post by **Joe** » Sun Dec 09, 2007 4:56 am

Well here's what I'd do (but I don't know your circumstances, so sorry if it doesn't directly answer your question).

First option, use it to pay off your mortgage (or reduce it). The interest you pay on a mortgage loan will be higher than any interest you earn in a savings account. Reduce your mortgage by even a few years & the savings will be considerable.

A maybe better option if money is short in your household & you still need access to the money would be to take out an offset mortgage. You then have control of the money & can spend it as you wish, but if you don't spend it the interest the money earns is used to pay off your mortgage & maybe shorten the term of it. This is what I'd do in your circumstances.

RedGlitter · Post by **RedGlitter** » Sun Dec 09, 2007 12:01 pm

Thanks you guys. I'm considering everything everyone's saying. Keeping it all in mind. I appreciate your advice.