I do not want to take more than "low" risk. Very minimal risk is ok. I am not familiar with mutual funds. I do not need this money for few years.
I would be happy if I earn 10%/year on investment but it has to be safe. Please advise.
2006-06-08 15:41:12 · 6 answers · asked by __HELLO__ 2 in Business & Finance ➔ Investing
10% *safe* investments don't exist! In general the more risk you take the better the performance *might* be.
That said the best you can do is a mix.
Suppose you have 1000 dollars.
Put 800 into CDs. One can get about 4%/year on those. So in five years the 800 dollars will grow to 1000 dollars. This guarantees your capital.
Put the other 200 dollars into a stock index fund, or better buy an index tracker. After five years this investment will have made *on average* 7%/year. It could be much less, or much more, this is the joker part of your investment. In practice you will have something between 150 and 350 dollars.
So after five years the 1000 dollar will have grown into something between 1150 and 1350 dollars.
If you want more risk, change the 80-20 mix to 60-40 or 50-50.
Your capital is no longer guaranteed, but your chances to gain more increase.
2006-06-09 22:13:33 · answer #1 · answered by cordefr 7 · 0⤊ 0⤋
Real Estate investment companies offer 10%-15% ROI and will secure your money directly to real estate that you own but never deal with. What is so soothing about this type of investment is that your money is protected because you are not investing in PAPER but an actual purchase of tangible land. As long as the property is undervalued enough to protect you (we are actually talking about comfort as there is no real protection against life) you have made a great investment that is safe and provides a great return.
2006-06-11 02:02:39 · answer #2 · answered by realestates_inc 1 · 0⤊ 0⤋
Perhaps you could look into an annuity? They offer decent long term returns on a locked in dollar amount and can be set up a variety of ways.
I am not a believer in cd's... you are giving the bank your money for a specific amount of time so THEY can invest it... how do YOU win there?? They are making about 200% profit on your money with long term investments- why not just invest yourself?
Susan
2006-06-08 23:56:55 · answer #3 · answered by notfromaround_here 4 · 0⤊ 0⤋
Well you can pretty much have either or... low risk or 10%. You are getting a great rate on your CD. Your best bet may be a bond mutual fund, they are low risk but you probably won't be able to find one anywhere near 10%. Good luck.
2006-06-08 23:26:29 · answer #4 · answered by Amanda 3 · 0⤊ 0⤋
If you want safety and low risk keep it in the CD. You're not going to get 10 percent without considerably more risk, and a longer term investment. Annuities have high fees and surrender charges.
2006-06-09 02:11:35 · answer #5 · answered by jeff410 7 · 0⤊ 0⤋
A mutual funds Money Market account. Look around and find one with a good interest rate and that compounds the interest daily.
2006-06-08 22:54:30 · answer #6 · answered by minzutoracing 2 · 0⤊ 0⤋