investing $$$$$

[adio 5,000+ posts]

where should i be looking to invest money with a high interest rate?? and by high, i mean at least 8% interest:graduate:

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[Flipx99 5,000+ posts]

How much risk and what investment time frame.

Finally what amount/

 

[bk12321 10+ year member]

How much risk and what investment time frame.Finally what amount/

Sorry to hijack this thread, but I have been meaning to ask this question and I remembered you were a financial person Flip.

What's the best method starting out with 3-5k initial + $100 added to the bank weekly, over a time frame of maybe 10 years, possibly as high as 40-50 years?

Ive heard CD and ive heard Roth IRA but honestly I have no idea what to go with. Looking for obviously the best interest rate possible.

This will be just money sitting on the side. Once I get out of college and get a real job I plan on doing some real estate.

Just trying to get some opinions, ive asked a few other people too.

 

[adio 5,000+ posts]

How much risk and what investment time frame.Finally what amount/

well, for $200, i can do something high risk. time frame for something like this would be 3 - 9months

for something a little more cautious, i would like to start off with $500 and just leave it in there and let it grow. i was watchin suze ormans show a coupla days and she kept saying ' u know, u if invested the $1700, in an account wich pays you 8% interest, instead of using it to buy that purse thats a size of a fist, do you know that that $1700 will turn into $X in 12 years?!!!?'

$500 is a good start, but i don't know how much i would add to it every month. i don't want a high interest savings account (5.5%) thats too small.

 

[InhumanAcura 5,000+ posts]

ive got almost 20k tied up in mutual funds and im not getting 8%, only collected 5.1% off cd's..good luck

 

[Flipx99 5,000+ posts]

Sorry to hijack this thread, but I have been meaning to ask this question and I remembered you were a financial person Flip.
What's the best method starting out with 3-5k initial + $100 added to the bank weekly, over a time frame of maybe 10 years, possibly as high as 40-50 years?

Ive heard CD and ive heard Roth IRA but honestly I have no idea what to go with. Looking for obviously the best interest rate possible.

This will be just money sitting on the side. Once I get out of college and get a real job I plan on doing some real estate.

Just trying to get some opinions, ive asked a few other people too.

If you want to lock the money away for retirement an IRA is good. If your state has income tax, you may want to look into a traditional IRA. If you do not, the Roth seems to be a better deal.

If I were to invest in one and only one thing with your initial funding, I would choose this:

https://flagship.vanguard.com/VGApp/hnw/funds/snapshot?FundId=0085&FundIntExt=INT

another alternative is this:

https://flagship.vanguard.com/VGApp/hnw/funds/snapshot?FundId=0696&FundIntExt=INT

both are great funds.

(I do not hold either, but that is because I watch the market every day)

What you are doing is called dollar cosy averaging and its the best way to invest in situations where yo are trying to take advantage of plays and just saving money.

well, for $200, i can do something high risk. time frame for something like this would be 3 - 9months
for something a little more cautious, i would like to start off with $500 and just leave it in there and let it grow. i was watchin suze ormans show a coupla days and she kept saying ' u know, u if invested the $1700, in an account wich pays you 8% interest, instead of using it to buy that purse thats a size of a fist, do you know that that $1700 will turn into $X in 12 years?!!!?'

$500 is a good start, but i don't know how much i would add to it every month. i don't want a high interest savings account (5.5%) thats too small.

I cannot think of a single investment vehicle where you could guarentee that return. You would get killed by commission in stocks, bonds, options, etc.

If you want high risk with that small amount, perhaps lottery tickets would be a good choice.

Really, it's hard. Capital stranguation kills me. If I had $30k to start, I doubt I would ever work again.

I would suggest the high interest savings. In your timeframe, the difference is $2 or 3, you would suffer no comission fees and sometimes they send you free stuff (emigrantdirect.com bank sent me a hat)

ive got almost 20k tied up in mutual funds and im not getting 8%, only collected 5.1% off cd's..good luck

My 401(k) is up 18.1% since last year.

Asset allocation is the key.

However, I do not think I can sustain this kind of growth rate forever. I still think proper allocating to index funds is the best approach.

That is what works for me given my income level, investment savvy, and business sence. Others may like individual stocks, options, bonds, cds whatever.

Just allocating indexes works for me.

 

[bk12321 10+ year member]

Really, it's hard. Capital stranguation kills me. If I had $30k to start, I doubt I would ever work again.

You know what they say... it takes money to make money.

If I had 30k just sittin in the bank, I would probably put it towards real estate. Ive always been a big fan of real estate investing... and once you get whatever property payed off, you can use tax laws to your advantage and 1031 exchange for a more expensive property... and keep trading your way up with no tax hitting you.

But real estate can be a risky endeavor too...

i would like to start off with $500 and just leave it in there and let it grow

The only things I can think of that you can do with $500 would either be 1) opening a small savings account... or 2) practicing with stocks, maybe do some paper trading first so you get the hang of it.
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[Flipx99 5,000+ posts]

You know what they say... it takes money to make money.
If I had 30k just sittin in the bank, I would probably put it towards real estate. Ive always been a big fan of real estate investing... and once you get whatever property payed off, you can use tax laws to your advantage and 1031 exchange for a more expensive property... and keep trading your way up with no tax hitting you.

But real estate can be a risky endeavor too...

The only things I can think of that you can do with $500 would either be 1) opening a small savings account... or 2) practicing with stocks, maybe do some paper trading first so you get the hang of it.

I dislike real estate investing because of liquidity issues....plus you have to hold the property for two years to avoid capital gains.

With $500, commissions would be killer. Even if you used sharebuilder @ $4 per trade, that is .8% lost to transaction costs.

 

[bk12321 10+ year member]

I dislike real estate investing because of liquidity issues....plus you have to hold the property for two years to avoid capital gains.
With $500, commissions would be killer. Even if you used sharebuilder @ $4 per trade, that is .8% lost to transaction costs.

Never thought about commissions lol, I never got into stock trading, just wasn't my thing. I find that if you know what your doing, there is less risk, and more chance of you making money with stocks, but there are still lots of chances to be taken. I know people who have made 400% in under 2 hours on penny trading, and I know some people who have lost over a million...

And the time frame I hold the property is no issue for me, because I plan on keeping it and renting out the property... so I will hold it for some time, while paying it off. I'm still considering other options as there are PLENTY, and i'm only 19 sooo there's lots of learning to be done.

 

[Flipx99 5,000+ posts]

Never thought about commissions lol, I never got into stock trading, just wasn't my thing. I find that if you know what your doing, there is less risk, and more chance of you making money with stocks, but there are still lots of chances to be taken. I know people who have made 400% in under 2 hours on penny trading, and I know some people who have lost over a million...
And the time frame I hold the property is no issue for me, because I plan on keeping it and renting out the property... so I will hold it for some time, while paying it off. I'm still considering other options as there are PLENTY, and i'm only 19 sooo there's lots of learning to be done.

The best thing is to explore the options....find out what you are comfortable with and then learn as much as you can. I have a degree and that helps with the "investing mindset" but anyone can acquire that through books and whatnot.

I know what you mean about the penny stocks. I tried trading options and ended up losing my shirt. I do much better with simple asset allocating and trying to predict economic trends.

 

[bigharv]

investing is about the long term, day trading the stock market may show you high returns, but i've seen average income people retire with millions by investing early and staying in it long term

 

[its_bacon12 10+ year member]

Sorry to hijack this thread, but I have been meaning to ask this question and I remembered you were a financial person Flip.
What's the best method starting out with 3-5k initial + $100 added to the bank weekly, over a time frame of maybe 10 years, possibly as high as 40-50 years?

Ive heard CD and ive heard Roth IRA but honestly I have no idea what to go with. Looking for obviously the best interest rate possible.

This will be just money sitting on the side. Once I get out of college and get a real job I plan on doing some real estate.

Just trying to get some opinions, ive asked a few other people too.

id say mutual funds. highest yeild of a low risk pool. over that amount of time if you actually do put 400 in it per month or ~4800 per year, for 40-50 yrs that could grow to be quite the retirement fund. looking upwards of 1-3 (depending on multiple factors) mil. look for something compound interest too..

 

[rtillaree 10+ year member]

it's all about property/land/housing, right now that is where the chunk of my "nest egg" is, i have 2 small commercially zoned properties both over 1 acre with small 1920'3/1930's style homes on them and i also have a large chunk of land in Missouri which was given to me by my grandfather, but i pay the taxes on it still, which are usually ****ed pricey...

i have several roth IRA's, 3 CD's with the maximum my bank would allow at the time yielding something in the 5.2% range and i also have a high % money market account, so far the money market and the IRA's are making more money off interest than the CD's and the CD's are almost 5 years old where as the IRA and the MM are 2 and 3, if that tells you anything...

check bankrates.com for current interests rates and other info on this type of investing...if its big money, get and adviser...

 

[bk12321 10+ year member]

The best thing is to explore the options....find out what you are comfortable with and then learn as much as you can. I have a degree and that helps with the "investing mindset" but anyone can acquire that through books and whatnot.
I know what you mean about the penny stocks. I tried trading options and ended up losing my shirt. I do much better with simple asset allocating and trying to predict economic trends.

About a year ago I was reading every day, finished about 5 full books chock full of tons of info... big *** books, and a couple small ones like Rich dad, poor dad too.

Once I got to college i've been lazy lol. Calculus is killin me. Ive definitely learned a good bit, but there's ALWAYS more to learn about money...

id say mutual funds. highest yeild of a low risk pool. over that amount of time if you actually do put 400 in it per month or ~4800 per year, for 40-50 yrs that could grow to be quite the retirement fund. looking upwards of 1-3 (depending on multiple factors) mil. look for something compound interest too..

Ive heard some good and bad things about mutual funds... some people say "diversify" and some people say "specialize". I will probably look into them as one of my possible options, i've just gotta learn a lot about every choice there is. Before now i've never really had the money to really "invest", so I never looked into mutual funds as a possible option.

it's all about property/land/housing, right now that is where the chunk of my "nest egg" is, i have 2 small commercially zoned properties both over 1 acre with small 1920'3/1930's style homes on them and i also have a large chunk of land in Missouri which was given to me by my grandfather, but i pay the taxes on it still, which are usually ****ed pricey...
i have several roth IRA's, 3 CD's with the maximum my bank would allow at the time yielding something in the 5.2% range and i also have a high % money market account, so far the money market and the IRA's are making more money off interest than the CD's and the CD's are almost 5 years old where as the IRA and the MM are 2 and 3, if that tells you anything...

check bankrates.com for current interests rates and other info on this type of investing...if its big money, get and adviser...

What exactly is "money market"??? How does it compare to CDs/IRAs?? Ive never ever heard of that.

 

[Flipx99 5,000+ posts]

About a year ago I was reading every day, finished about 5 full books chock full of tons of info... big *** books, and a couple small ones like Rich dad, poor dad too.
Once I got to college i've been lazy lol. Calculus is killin me. Ive definitely learned a good bit, but there's ALWAYS more to learn about money...

Ive heard some good and bad things about mutual funds... some people say "diversify" and some people say "specialize". I will probably look into them as one of my possible options, i've just gotta learn a lot about every choice there is. Before now i've never really had the money to really "invest", so I never looked into mutual funds as a possible option.

What exactly is "money market"??? How does it compare to CDs/IRAs?? Ive never ever heard of that.

1) Rich Dad Poor Dad is a joke. It is not worth the paper it is made from. One Up on Wall Street is an excellent book.

2) You can do both. That is what I mean by asset allocation. Some mutual funds specialize. You can get the benefits of specialization while mitigating the risks of single stocks. Say you think we are heading into a recession (I do...btw)...consumer discretionary would be a good choice to DollarCostAverage in (Because it is going to go down because of the recession. I buy my way down on my predictions, I don't buy on the way up). Exchange Traded Funds (Mutal funds that trade like stocks) are an excellent way to do this. Just watch out for commissions.

Money Market consists of overnight loans, commercial paper, et all. I cannot think of a good reason to have one...or a CD for that matter, but my risk profile is different than yours. If I want "safety" I will pay down debt, as that is less risky than government back securities.