I recently inherited $25,000....

[CharlieBrown]

should I buy DVC, or should I buy Disney stock?

[disneydeb]

I would put my money in a IRA or CD after I paid off all I owed other than my home.

[scoot241]

I would put my money in a IRA or CD after I paid off all I owed other than my home.

Gotta agree here. Get rid of any debt you can. Then see what you might want to do with the money left over.

I know this isn't as fun as buying into DVC or DIS, but getting rid of your debt will free up the money you would be paying toward those debts for other things.

[vicster]

Ditto on being debt free!!!

[gmgdisneymom]

Sounds like a broken record but get debt free first

[Lynn J Mc]

Might you already be debt-free? that might get different answers. We had that happen and my mother wanted us to invest in the stock market. I asked her if she was interested in borrowing money against her house to play the stock market and she said no, I said neither am I and paid it on my house.

[CharlieBrown]

I guess my point was, which will do me more good in the end, $25k stock, or $25k in DVC.

After all in 30 years $25k in DVC is worth $0.

[BW Fan]

I'm confused. The question posed was whether to buy Disney stock or DVC. No information was given regarding any other financial planning alternatives (such as paying of other debt or house debt or IRA investing, or anything).

With that in mind - I would recommend the DVC purchase if you are a frequent visitor to WDW. They seem to hold their value well over time and you get real $$$$$$$$ benefits as it seems the cost of on property resorts continuously increase year over year. You certainly don't get that level of enjoyment and $ savings from Disney stock.

[scoot241]

I guess my point was, which will do me more good in the end, $25k stock, or $25k in DVC.

After all in 30 years $25k in DVC is worth $0.

Not necessarily. You can sell your interest in DVC if you decide to. I'm not sure what kind of return you would get, however.

[SBETigg]

If you're going to invest in stock, I wouldn't invest in Disney right now. I know we all love to be a part of it, but there are better investments out there at this time. You would get more personal enjoyment out of the DVC, but don't expect that to be an investment, either.

Why not see a financial advisor? A pro could lay out your options so that you could see them to their best advantage. Invest in the right thing now and you could have DVC and a nice Disney investment in your future.

[diz_girl]

to Intercot!

Hopefully, you are already debt-free (credit card or other unsecured debt). If so, and you plan on visiting WDW at least every other year for the foreseeable future, then go ahead and buy that DVC membership, since you will be spending that money at WDW anyway. Then instead of saving for your accommodations (just save for tickets, meals and extras), you could just put that money into your own savings or investments.

In order to save some money, you might want to buy resale (an Intercot sponsor is the Timeshare Store), rather than buying directly from Disney, unless you plan to wait until the Contemporary DVC becomes available. The Timeshare Store also has charts of point values for the various resorts, so you may want to check out their Website. Also, please note that the DVC resorts have varying membership expiration dates, so there are more years to use some memberships than others.

Don't spend all of your inheritance on your initial purchase, unless you would need all of those points. Put the rest of the money into some CDs (rotate their maturity dates so you have money coming available each year) in order to have money to pay the annual maintenance fee. Please do your research first on how many points that you would need per year and which resort you would want as your home resort (where you plan to stay the most), then go shopping for your membership.

I'm not a DVC member, but I've been considering buying into DVC (probably VWL). I don't have money saved to buy it, as I'm saving money for my next maternity leave, but I won't go into debt for it. So unless I get an inheritance, no DVC for me for at least a few years.

Also, every time that you visit WDW you could be reminded of your loved one who was thoughtful enough to give you this gift.

[kakn7294]

I wouldn't make a quick decision on this one. I tend to research things to death so I'd talk to both a financial advisor and the DVC people to get all the facts on both options then go from there. During that time of research, I'd put the money into a short-term CD then make my move once the CD has matured. You'll have gained not only the knowledge you need to make the best decision for yourself but a bit of extra money in interest as well. Good luck on your decision and enjoy having that money!

to Intercot!

[Marceline]

It all depends on your priorities.

Are you looking to make money, or make memories?

In 30 years the 25K is "invested" in DVC will be gone, yes, but you will have exchanged it for 30 years worth of vacation memories.

In the 30 years the 25k that is invested in Disney stocks may grow, perhaps, but you would have only the experience of watching paper multiply.

Which EXPERIENCE are you looking for?

[Momof2boys]

We also came into some money this year and we bought into the DVC. Now I will say that the DVC purchase didn't use half of the money we received, so that may be a factor for you. But we know we wanted to continue vacationing at Disney for years to come and with the option of other alternative locations it was the best use for us.

[AHOTE]

For the fun of it I did some quick computations on the 30 year number someone mentioned on Disney stock from 07/10/1978 to 07/10/2008. Hind sight is a wonderful thing.

Disney stock was selling for $41.25 per share on 07/10/78 so you would have had 606.06 shares.
The stock split in 1986, 4-1 at $142.60 per share. It split again in 1992, 4-1 at $152.90 per share. It split again in 1998, at $111.00 per share. That would give you 29088.88 shares today at $29.01 or $843868.40+-. This is based on no withdrawals in those 30 years or dividend reinvestment. Dividends for 2007 were $0.35 per share or $10,181.11 which in it self would cover quite a vacation. I know past preformance can't be used to determine future gains but it can give you a basis from which to choose a course of action.
I would give myself some time to determine which things in my life have priority. Your choices will all depend on a lot of factors as they pertain to your life now and in the future. You might want to talk with a financial advisor to help sort things out. Many banks and credit unions offer these services free or a low cost for depositors or members.
Good luck in whatever decision you make.

[Sharon1026]

You need a full blown financial review. Go see someone at Edward Jones Investments. They will do a review for you at no cost and don't require account minimums to speak to them. Plus they give great advice.

[Deesdisney]

Why not do both. Buy a resale at a great price with cash and use the rest if you want in the stock. You will have fun now and later. What would the person that left you that money want you to do with it? I think they would want you to be happy. DO BOTH.