Where would you invest your money?

Question

In stocks? Mutual funds? Would you hire a financial planner or a fund manager? Any advice you have would be helpful, thanks!

Answer 1

First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.

Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.

Third, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will make you a lot of money in the long run.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Answer 2

You don't say how much money; that will llimit what you can do and decide your category, how much you can divest, and how much risk you take or leverage you accept.

If you have a strong stomach for $100 price fluctuations in a day (that's $10,000 on 100 shares), you can buy something like Google.

It seems you've already made a decision to "invest" in something, but you only give three choices. Are you a long-term investor?

What is your definition of Long-Term? If you had bought stocks anywhere around the 2000 high in the stock market, you would still be waiting to get even after six years, and wouldn't mind waiting another seven years to make a profit if you are truly a "long-term" investor.

The "Buy-and-Hold" strategy really doesn't hold water if you consider it depends on when you "buy." You might go 25 years without a profit, if history is any guide. But if that is your deal, then go for it. But you need not be limited to only three choices. All three of these choices are always "in" the market.

Otherwise, you have to consider that the Dow has again approached that all-time historical high set in Jan 2000 at 11,721 and failed there. Looks like a Double Top to me, but some people say we could double that again. Logically, this is one of the scariest markets I've ever seen in two decades of watching it; just pick something that is stable, anything. Doesn't exist, does it. Anything could send this market over the edge to the great void. But hey, it might double too, who knows.

For most people, the name of the game is capital preservation. You don't invest when the market gets too risky or too frothy or is nearing a market top or an old market top, or when the market is overpriced, or unstable, and all of these things are true today. There really is a time when cash is King. That 2.5% CD is going to look pretty good when everyone else is cryin' in their beer about losses. Or the market could just go sideways to work off the excesses, but either way, you're safe if you're out. Wanna throw the dice, go to Vegas.

If you wish to research the “Buy and Hold Strategy” further, or perhaps trade yourself, I recommend two book titles. One is called "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to think about.

In my mind, none of your three choices are very good. A financial planner will just have you invested in the other two. Stay out a month or two, and see where the wind blows, and you may find some real bargains then.

Answer 3

I avoid stocks as you need do lot of research and have to keep track of so many variables. When you are employed or running a business, this becomes as problem. If you are small time investor mutual fund route is good. If you are high net wort individual, you can go via private banker.

A financial planner will help on both the situations as you may not be up-to-date and it is not easy to choose a product which matches your requirement. The financial planner will help to identify the products (bet it mutual funds, insurance, etc) that fits your requirements.

Good luck.

Answer 4

Depends how much money you have and what you want to do with it. If you are young and want to invest in stock market than find a couple companys to invest it in. (ex. Yahoo, Cisco, Wal-Mart) Investing in stocks can be risky. Mutual Funds are not as risky as stocks are. You will get a good return on it over a long period of time. American funds are good mutual funds to invest in. Going with a financial planner is a good idea, or go through a company for help with investing. (ex. Edward Jones, TD Waterhouse) Hope this is of help.

Answer 5

I invest in stocks, Mutual funds, 401K, and Roth IRA. No, I will not hire a financial planner. I like to be in the drive seat on controling where I should invest my moneys. I been investing since 1988. I believed, I have enought experienced, knowledge, and the confident to do it myself.

My advice to you is. Go to the library, pick up a few books on how to invest. Start reading, you will gain knowledge as you go.
You can do it, it not as hard as people think.

Answer 6

There are too many unknowns here. How much money do you have? In what types of accounts? What is your tolerance for risk?

Once you are able to answer some of these questions, you'll get an answer you can use.

My bias as a money manager is to get your own money manager provided you have the minimum capital requirements. As an example, for my firm it's $100,000 per account type (i.e., account type means brokerage, Roth, SEP-IRA, Rollover IRA, etc.). This will ensure full disclosure of fees in writing and full transparency provided your manager is buying positions directly in your account and not buying other company's products. Ask a lot of questions. It's your money. If you are uncomfortable with an answer you're getting or the answer is defensive in nature, take that for what it's worth.

Feel free to write back with your contact information if you want to talk. Even if you don't have our minimum, I'd be glad to give you a few minutes by phone to answer questions.

Answer 7

Everyone who has a job should have a financial planner. You need to plan now for your retirement. The costs are skyrocketing. I still think that the best investment you can make is real estate.

Answer 8

you could now make investments earnings 3 consumer-friendly steps: a million) open a Demat Account with economic business enterprise or broking provider (Reliance funds, Karvy, Indiabulls etc) 2) Deposit your earnings Demat account. 3) purchase shares on your demat account by a application or by telephone call to broking provider.

Answer 9

Depends on you time horizon, how much you have and all sorts of other things about your situation. Any answer without that info is NOT sound.

Answer 10

In gold biscuits.