August 29, 2017
Thomas F. Hilton and Dennis McCarty
Never invest money you cannot afford to lose.
That admonition came from the late stock market expert, Louis Rukeyser, in his 1976 book, How to Make Money on Wall Street. This remains wise advice for anybody wanting to invest a sudden windfall. Financial planners will tell you that there are three things you can do with money. First, you can spend it. Spending is buying something that will depreciate over time like a car. Second, you can invest it. Investing is buying something that you hope will appreciate in time like stocks or a house. Third, you can let it sit in the bank for a rainy day where it may not do anybody any immediate good. Moreover, it might disappear on its own as states often recoup unspent funds.