Friday Reader Q&A: Where Should I Put $5,000 Right Now?

HOUSTON, July 1

It's Friday. And that means that its time for FTMDaily's Reader Q&A. Each Friday, we reserve our daily column for our readers and their questions. Whether you have a question about your money, our Five Levels of Financial Freedom, the global economy, commodities, or retirement savings, we invite your questions. (To submit your question, click here.)

I am taking the minimum required distribution from my IRA. Any suggestions for this money?

Q: Jerry, I am currently 71, and I am taking the required minimum distribution from my IRA account. This amount is $5,000 annually. I have another source of income and do not need the IRA money to pay my monthly expenses. Do you have any suggestions on how to invest this money? Thank you for all the work you do. (L. Gann, Spokane, WA)

A: Since I don't know your entire financial situation, I am going to have to answer somewhat vaguely. For example, if this $5,000 annual distribution could be put at risk, then I would suggest investing. However, if you were dependent upon this $5,000, then I would suggest preserving the principal and placing it in a highly conservative financial product.

L, you didn't mention which level in our "Five Levels of Financial Freedom" you are on. I always suggest that you use our Five Levels as sort of a road map to determine where you are financially. For example, in Level One, where your financial foundation is laid, I encourage readers to have three months of food and water supply, two months of liquid savings, and a Go Bag (a Go Bag is a 72-hour emergency kit that you can take with you at a moment's notice in the case of a disaster, fire, trauma, wicked weather, etc). Do you have all of this in place already? If not, this would be the ideal place to begin. For more on our Five Levels of Financial Freedom, click here.

For argument's sake, I will say that you are in Level Five and that you have already built a solid financial foundation,being debt-free, having plenty of cash reserves, more than adequate asset and life protection, and that this $5,000 can be used for speculative purposes. If this is the case, then you could consider the following options:

1). Buying Gold and Silver Coins

2). High Quality, Dividend Paying Stocks

3). Stable Foreign Currencies (Swiss Franc, Canadian Dollar, Australian Dollar, etc.)

4). Donate it to charity and get a tax break

L, these are just a few of many ideas of where to put the money. Your best bet would be to meet face-to-face with a trusted financial advisor in your area. If you do not know a financial advisor in your area, feel free to use our 100% free financial advisor referral service here.

When Will Your New Book on Multiple Streams of Income Be Available?

Q: Jerry, first of all, I listen to your show every single week and I share it with all my friends and family. I really appreciate the work you are doing! Now to my question. I am very excited about your upcoming book on how to create multiple streams of income. Do you have any other products like that available now, and when do you expect the new book to be released? (Mary Sanders., Nashville, TN)

A: Mary, I too am excited about the upcoming book on multiple streams of income. Teaching people the importance of diversifying their savings, diversifying their investments, and diversifying their income has been a passion of mine for years, and I believe that this book will help many people increase their incomes dramatically.

With that being said, we do not have a product in our catalog that is anything like this upcoming book. However, I would highly encourage you to read our first book "Bankruptcy of Our Nation", if you have not already, as it will help you lay a solid foundation for the concepts I will teach in the second book. In addition, our first book contains 12 key strategies for protecting your finances. The book is available here.

I expect the new book, which will be available in e-book format, to be available by the end of fall. When I first began writing it, I expected it to be a small booklet and hoped to get it out much quicker. However, I have found in my research that there is so much that needs to be said and shared regarding each of these 16 income streams that I am pouring much more time into it than I had expected. But I believe that the information in this book will be well worth the wait! God bless you Mary, and thank you for your continued support.

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Until Monday,

Jerry Robinson – FTMDaily.com

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Jerry Robinson is an economist, published author, columnist, international conference speaker, and the editor of the financial website,FTMDaily.com. In addition, Robinson hosts a weekly radio program entitled Follow the Money Weekly, an hour long radio show dedicated to deciphering the week's economic news.