WSOP Windfall... What is a boy to do?!?!
 

Hey all,
So I just got 3rd in event 25 of the WSOP and have a rather large (for me) influx of money, we'll say 200k after some purchases. Right now I have it sitting in a Jumbo MMA making 5%. Is that the best place for it? Are there any secrets I should know about? Real estate doesn't seem like a great place to sink money right now so I am looking for alternatives.

Re: WSOP Windfall... What is a boy to do?!?!
 

Sweet score ...

Final Standings

1. Ben Ponzio — $599,467
2. David Hewitt — $374,216
3. Justin Rollo — $244,566
4. Evan Schwartz — $165,008
5. Travis Rice — $111,970
6. Danny Noam — $82,504
7. Adam Ross — $61,878
8. Ken Einiger — $45,672
9. Darryl Ronconi — $34,770

Re: WSOP Windfall... What is a boy to do?!?!
 

Jurollo,

200k after taxes? If I were you, I'd start learning about the stock market.

I'm sure people will have some general ideas here, but you might want to post this in Business and Finance if you haven't already, they'd love to talk about how to play with 200k.

Re: WSOP Windfall... What is a boy to do?!?!
 

Ming,

I don't know if J was staked or sold pieces or swapped or whatever other financial arrangement, but it was posted here that the final 3 chopped for 400k each.

Re: WSOP Windfall... What is a boy to do?!?!
 

Sing in a rock & roll band.

Re: WSOP Windfall... What is a boy to do?!?!
 

What is your financial situation? Do you have any debt? Credit card/school/otherwise? Give us some background. What are your living expenses? Where do you live/what do you do now? Do you own/rent? Where do you live, etc?

Re: WSOP Windfall... What is a boy to do?!?!
 

1.) Pay your taxes
2.) Pay off any credit card debt
3.) Consult a financial advisor....even people at your bank will do this for free

I would still advise buying property if you are now renting. Even if it doesn't appreciate before you move, it's better than throwing money away every month on rent.

Re: WSOP Windfall... What is a boy to do?!?!
 

home prices are down in california. doesn't this make real estate from an investment a good time?




also...congrats!, hookers n' blow and 'new shooter cominnn in!'

[img]/images/graemlins/smirk.gif[/img]

Re: WSOP Windfall... What is a boy to do?!?!
 

by-tor,

It's always a good time to buy or sell real estate, at least that's what the lady on the teevee said.

Yeah, an inexperienced investor sinking 200K into an "investment" property in CA would probably be slightly worse than investing it in lotto tickets.

Vanguarg Voyager. I believe 250K gets you the special status with free consultations and stuff. Oh and diversify, diversify, diversify.

J

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
Hey all,
So I just got 3rd in event 25 of the WSOP and have a rather large (for me) influx of money, we'll say 200k after some purchases. Right now I have it sitting in a Jumbo MMA making 5%. Is that the best place for it? Are there any secrets I should know about? Real estate doesn't seem like a great place to sink money right now so I am looking for alternatives.

[/ QUOTE ]

if you dont own a home/condo BUY NOW. also purchase 50k brk.b and 50k vanguard sp500 index fund and fuggetaboutit. use the rest to have fun!

Re: WSOP Windfall... What is a boy to do?!?!
 

congrats man

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if you dont own a home/condo BUY NOW.

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and don't listen to blanket advice like this.

Re: WSOP Windfall... What is a boy to do?!?!
 

The paying off debts makes a lot of sense. But depending on your situation I don't know that buying a condo or a house makes sense.

The housing market is dead right now. If you go buy a 125k condo way off the strip in Vegas there's nothing saying you will be able to sell it with ease for the same price 2 or 3 years from now. (You never know when you might need to sell)

Now if you did some research and found a decent duplex that's for sale and been occupied for a while you could buy one of those and keep the renters. There are also companies out there that will do everything involving the renters for a %.

I'm also one of those people that's had a house on the market for 9 months so I'm a little bitter towards the market right now.

Either way good luck and maybe a month from now you'll be asking us how you should invest your 2 million. [img]/images/graemlins/smile.gif[/img]

Re: WSOP Windfall... What is a boy to do?!?!
 

All,

Jurollo's AIM away message: "test driving some cars"

Awesome.

Re: WSOP Windfall... What is a boy to do?!?!
 

Haha el D. The cars/student loan payoff/gifts for parents are why I am down to $200k really quick. I am totally debt free, no student loans, no car loans, no credit debt. I have enough for my bankroll to last for a while and have no desire to start playing the live circuit. The idea of even making $1k/month on interest is pretty sweet to me as it could pay off a small mortgage. I am going to probably talk to a financial adviser tomorrow. Any more opinions would be awesome.

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
Haha el D. The cars/student loan payoff/gifts for parents are why I am down to $200k really quick.

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Have you already taken taxes into account, too?

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
[ QUOTE ]
Haha el D. The cars/student loan payoff/gifts for parents are why I am down to $200k really quick.

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Have you already taken taxes into account, too?

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Yes. I dont want to get into specific details of it, but the way we worked out the deal ensured everyone the same amount post taxes, as Harrah's wouldnt get involved in facilitating the deal, hence I got a chunk from 1st place.

Re: WSOP Windfall... What is a boy to do?!?!
 

congrats on the win! the thing about a money market account is it's a great place to keep money while you are learning about investing, it's not a great long term solution. inflation and taxes will cut into that 5% over time giving you a real return of much less.

a thing to keep in mind regarding financial advisors is they're good for some people, but might not be the best way for you to go if you are interested in learning more about this stuff. I have gotten some truly horrid recommendations from financial advisors, and had one who would do anything in his power to keep me from investing in an index fund through him. be careful with financial advisors is all I'm saying.

if you're interested in learning about investing, head over to the finance forum and check out the reading list. I read "a random walk down wall street" first, which had a good introduction to the basic machinations of investing apart from espousing an index based philosophy (which you may or may not agree with.

also check out posts by Jeff W and TheMetetron, both have solid info. if there is a term you don't understand, just look it up on wikipedia or investopedia, both are great resources for learning about investing. when I started learning about this stuff last year I would read financial articles and look up any terms I didn't understand.

Re: WSOP Windfall... What is a boy to do?!?!
 

Did anything ever come of that parking lot idea?

I'd probably split the 200k between some standard savings and MMA type accounts as well as some higher risk/higher yield investments. I think its fine to even put your money into sort of a "holding pattern" of low/no risk investments while you familiarize yourself with the stock market.

Re: WSOP Windfall... What is a boy to do?!?!
 

Justin,

Congrats!

If you don't have a budget, now might be a good time to make one.

Things to consider:

Average monthly income
monthly fixed costs(rent, bills, spending money, entertainment).

Once you have done that a financial advisor will be able to help you flesh out what your desired investment goals are.

For example, you state "$1000 in interest seems pretty nice." However, if you do your budget, you may see that that $1000 in interest, while nice is not really necessary, and your money may be better invested for the mid-long term with a target rate of double-digit returns. Perhaps you'll find a mixture of the two where 50% of the money is invested in stocks, looking for long term gains, and another portion is invested in order to derive interest income.

I wish I had some books to recommend, but I think El_D makes a good suggestion when he says start learning about the stock market. Things like 5% on a CD might not seem so attractive after you learn a bit more.

BOL,

Claude

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
Real estate doesn't seem like a great place to sink money right now so I am looking for alternatives.

[/ QUOTE ]

[img]/images/graemlins/confused.gif[/img]

Re: WSOP Windfall... What is a boy to do?!?!
 

1. Stake 20 People in the Main Event
2. Watch them place 1st-20th.
3. ROBUSTO!

Re: WSOP Windfall... What is a boy to do?!?!
 

Yeah but seriously, I'd suggest putting it in a bank and not letting yourself touch it for a month (til the rush settles down).

Re: WSOP Windfall... What is a boy to do?!?!
 

Buy 200,000 lottery tickets

Re: WSOP Windfall... What is a boy to do?!?!
 

How long are u looking to invest the money for?

Index funds would probably be your best option if you are not familiar with the stock market.

Re: WSOP Windfall... What is a boy to do?!?!
 

Jurollo,

How old are you? Minimizing taxes is often a terrific financial strategy; I have no idea what your tax situation is and am certainly no expert, but if you can take a deduct for a 401(k) or IRA contribution, try to do it. Planning for the long haul early is huge.

You'll probably think this advice is old-timey and rather dweeby; perhaps so.

In any event, congrats on your showing.

Re: WSOP Windfall... What is a boy to do?!?!
 

Isn't there a maximum you can put in a 401k?

Re: WSOP Windfall... What is a boy to do?!?!
 

Also I am 23.

Re: WSOP Windfall... What is a boy to do?!?!
 

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Isn't there a maximum you can put in a 401k?

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I believe this is only through work, and the max is around 15K per year. You could open an IRA, but the max yearly contribution is far less than you have.

Re: WSOP Windfall... What is a boy to do?!?!
 

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[ QUOTE ]
Isn't there a maximum you can put in a 401k?

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I believe this is only through work, and the max is around 15K per year. You could open an IRA, but the max yearly contribution is far less than you have.

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Can you defer taxes with IRAs? I guess I should talk to a pro, just sucks because I feel like I might get advice that is good for them and maybe not good for me?

Re: WSOP Windfall... What is a boy to do?!?!
 

Put at least 10% into Forex. Diversify the rest in medium to low risk stocks/funds.

fyc

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Isn't there a maximum you can put in a 401k?

[/ QUOTE ]

I believe this is only through work, and the max is around 15K per year. You could open an IRA, but the max yearly contribution is far less than you have.

[/ QUOTE ]
Can you defer taxes with IRAs? I guess I should talk to a pro, just sucks because I feel like I might get advice that is good for them and maybe not good for me?

[/ QUOTE ]

You seem to have a lot of basic finance questions. While ppl here can answer them, perhaps you would be better served by looking through a couple personal finace books first.

Re: WSOP Windfall... What is a boy to do?!?!
 

not the best time to buy real estate right now, IMHO

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Isn't there a maximum you can put in a 401k?

[/ QUOTE ]

I believe this is only through work, and the max is around 15K per year. You could open an IRA, but the max yearly contribution is far less than you have.

[/ QUOTE ]
Can you defer taxes with IRAs? I guess I should talk to a pro, just sucks because I feel like I might get advice that is good for them and maybe not good for me?

[/ QUOTE ]

my suggestion is to NOT "speak with a pro".

******disclaimer, just my opinion only*********

200k after taxes is a nice chunk at your age and there are a few things you can do to give yourself a headstart on financial freedom at some point in your life.

everybody's EXACT financial situation is different so its difficult for ppl here to give quality advice - it is evident you know little from your questions about IRAs/401ks.

but that's ok

the #1 thing you can do assuming you want to spend some time and effort on this (and you should)

is repost this question in the business/finance forum and include more details. then follow up with questions, research the options ppl give you and ask more questions. rins/repeat -

the knowledge gained will be very valuable in addition to the money you save by not going to a professional - the quality of poster's in that forum is very very good.

rough standard answer to someone young with a windfall -

1. payoff all debt except maybe a mortgage if you have one
2. max out possible tax advataged accounts - understanding first the limitations of the account specifically in regards to penalty free access of the money
3/4 - think about brokerage account/strategy
3/4 - think about home ownership/strategy


good luck.

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
Hey all,
So I just got 3rd in event 25 of the WSOP and have a rather large (for me) influx of money, we'll say 200k after some purchases. Right now I have it sitting in a Jumbo MMA making 5%. Is that the best place for it? Are there any secrets I should know about? Real estate doesn't seem like a great place to sink money right now so I am looking for alternatives.

[/ QUOTE ]

I hear Vinny Chase is looking for a financier.

Re: WSOP Windfall... What is a boy to do?!?!
 

[ QUOTE ]
Isn't there a maximum you can put in a 401k?

[/ QUOTE ]

Yes, absolutely -- I think it's something around $15K. But I'm not at all sure what the eligibility is, which is why I suggested that you talk to a pro. If you talk to a pro, my very definite advice is to avoid anyone working on a commission; rather, pay them by the hour. It is clearly worth $500 to have someone answer questions and give you a general education in response to your articulation of your overall needs. You can also go to the finance board here, but that will take much more time and interpretation: it's a little like a newbie here understanding sup bro, DUCY, SIIHP, and beedogs all in a sentence or two.

The commission guys are much riskier for you, as their interests are not coincident with yours.

Re: WSOP Windfall... What is a boy to do?!?!
 

Howard,
Thank you very much. I am going to talk to a pro and teach myself as well as posting on the business board. Between the 3 I should be able to formulate a plan.

Re: WSOP Windfall... What is a boy to do?!?!
 

Jurollo,

While there are clowns in any profession, I think you're more likely to find reliable advice from a fee-only financial adviser as opposed to one who is commission based. Financial advisers through AmEx (I was one), Merril, Prudential, etc, all get paid by commission, so while there are plenty of good guys that will do their best, there's also plenty that will put you in a vehicle that may return a little less but give them better pay, so its sort of a crapshoot. Fee-only guys don't have the conflict of earning a living depending on what they sell, mostly, so its a better gamble.

Re: WSOP Windfall... What is a boy to do?!?!
 

Are you allowed to deal for the bracelet? If you tell Harrah's that Player B gets it, will they honor it? Or do you have to go through the motions to let someone win?

Re: WSOP Windfall... What is a boy to do?!?!
 

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Are you allowed to deal for the bracelet? If you tell Harrah's that Player B gets it, will they honor it? Or do you have to go through the motions to let someone win?

[/ QUOTE ]
We couldnt deal with the mics on and had to play for the bracelet.

Re: WSOP Windfall... What is a boy to do?!?!
 

Justin,

The max you can put in an IRA is $4,000.

Claude