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

[econophile]

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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.

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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?

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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.

[Reef]

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

[stoxtrader]

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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.

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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?

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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.

[samjjones]

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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.

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I hear Vinny Chase is looking for a financier.

[Howard Treesong]

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

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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.

[Jurollo]

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.

[RunDownHouse]

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.

[iversonian]

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?

[Jurollo]

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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?

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We couldnt deal with the mics on and had to play for the bracelet.

[claudenm]

Justin,

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

Claude