So any tips on what to do with about 50k? Prolly be about a month but I want a good safe return on it in 6 months to a year....
Investment help...
- Thread starter mikemeyer0
- Start date
Aside from sending it to me so I coul invest in hookers and blow, there are 2 options that I'd recomend. A CD is a good safe option, I have one set up with Charles Shwab with an 10.5% anual return, so although it's not a huge gain, it's much better than a savings account and there is no risk involved. The other option is real-estate, more specificly buying into a rental property. I bought a .987% share of a decent sized apartment complex a few years ago for $50k, I get a quarterly distribution of roughly $1000 and there was a recent re-fi that resulted in me receiveing a $24k check (all tax-free too wich is a huge bonus), so in 2 and a half years that investment has netted me $34k, and I can sell off my share of the apartment complex for more than my original investment at virtually any time. I've had some stocks that have payed off huge, but also a few that I've lost my shirt on, CDs and rel-estate are much more of a sure thing, while you usually don't make an assload off of them, you usualy can't lose money either.
ptschram
Well-known member
Stay away from real estate, it is not gonna be the investment it was for some time.
If you want to avoid paying big management fees, go to your local bank and see what they have to offer. Many of the brokerage houses won't talk to you if you only have $50K and if they do, their fees eat up much of what you might earn.
I administer a trust for a friend of mine's mother and have CDs in a coupla banks with laddered maturities and varying returns.
If you have a 401K managed by an outside company other than your employer, they may have a mechanism for you that will give you some diversification and acceptable management fees.
Whatever you do, don't put it all in the same basket!
PT
If you want to avoid paying big management fees, go to your local bank and see what they have to offer. Many of the brokerage houses won't talk to you if you only have $50K and if they do, their fees eat up much of what you might earn.
I administer a trust for a friend of mine's mother and have CDs in a coupla banks with laddered maturities and varying returns.
If you have a 401K managed by an outside company other than your employer, they may have a mechanism for you that will give you some diversification and acceptable management fees.
Whatever you do, don't put it all in the same basket!
PT
Laddered CD's are always a good bet. Especially if you are they type who always feels that you have money buring a hole in your pocket (like myself). Try not to sock it all away long-term as you might always need to withdraw some for a rainy day. The main benefit is that they are fixed rate. Keep in mind though, that there are few good CD options in the 6 month range.
Money Markets are very safe, though they typically have a lower return. With a MM you have full access to your money though. They aren't insured, but only one MM has ever gone completely under - and it still returned 94 cents on the dollar to investors.
There are also some high rate savings accounts out there paying out over 5%. They are FDIC insured, but the rates could always change (which you can always reallocate).
If you are willing to accept more risk, you could always try a few mutual funds. While on average they don't usually exceed or match the stock market as a whole, they usually offer greater returns than MM's and CD's.
My suggestion would be to start a few accounts with a respectable brokerage and spread your money around. Though if you are really talking about short term (6mos to a year) you probably want safer investments like CD's or high rate savings. A mutual fund or stock might return 10-15% in 12 months, but it could also be in a low spot that could take several more months to recover.
Money Markets are very safe, though they typically have a lower return. With a MM you have full access to your money though. They aren't insured, but only one MM has ever gone completely under - and it still returned 94 cents on the dollar to investors.
There are also some high rate savings accounts out there paying out over 5%. They are FDIC insured, but the rates could always change (which you can always reallocate).
If you are willing to accept more risk, you could always try a few mutual funds. While on average they don't usually exceed or match the stock market as a whole, they usually offer greater returns than MM's and CD's.
My suggestion would be to start a few accounts with a respectable brokerage and spread your money around. Though if you are really talking about short term (6mos to a year) you probably want safer investments like CD's or high rate savings. A mutual fund or stock might return 10-15% in 12 months, but it could also be in a low spot that could take several more months to recover.
ptschram
Well-known member
Justin Kurosaki said:
More importantly, if you are worried that you might need the cash, by laddering, you always have one maturing.
I laddered the old lady's so I could have one maturing every month to cover her rent if other investments don't pan out or other expenses come up. I consider the laddered CDs to be the short term stuff, I have her other funds in longer-term instruments.
I knew my finance education would come in handy some day
ptschram
Well-known member
az_max said:Ok, Ok.... $25k on black, $25k on red....
In my case, every transaction is scrutinized by a judge, the company that issued my bond and the Social Slavery administration. I don't think they'd like that plan.
Invest in apple RIGHT NOW at this very moment.
New iPods tomorrow. Stock will likely go up. Trust me.
I told my parents to invest in apple when it cost $20 a share like 3-4 years ago. A year later it went up to $90.00 and split. Now there stock is at $145!
If only they had listened...
New iPods tomorrow. Stock will likely go up. Trust me.
I told my parents to invest in apple when it cost $20 a share like 3-4 years ago. A year later it went up to $90.00 and split. Now there stock is at $145!
If only they had listened...
G
gil stevens
Guest
EJB90 said:
I did the exact same thing with my stepfather.. same time probably... but he did take my advice.. cut me a nice check about a year ago for the tip
gil stevens said:
No, but there stop has appeared to be going up exponentially
. Every time they release something new the stock flies up.
G
gil stevens
Guest
oh i hear ya, but for the same percentage gain as going from $20-$145 it would have to go from $145-$1051.. hey man, you never know
I'm not so sure about this. By the end of this year it is predicted that 1 out of every 15 homes will be in foreclosure of some form or another. Banks are not real estate agents are will want to unload. Historically, banks have not had to dump properties for cheap b/c they have never really had an influx.ptschram said:
However, with the upcoming foreclosure forecast, I'd be willing to bet that you could score real estate for 40 cents on the dollar, even less in some cases.
This is going to be a really really interesting time for real estate and mortgages. Even with Bush dumping $1 billion to "help" those in subprime mortgages... he is only staving off the inevitable. It's almost like the real estate is oil and some of his constituents are investors in the real estate market...
The best financial advice you can get on a message board....
.... Don't take financial advice from a message board.
Put it in the bank or go see a professional.
.... Don't take financial advice from a message board.
Put it in the bank or go see a professional.