What would you invest in if you have Half a million dollars ? is it property ? mutual funds , stocks ?

Answer 1

Real estate, real estate, real estate. Look for some of the nicer small towns that are growing rapidly. Property prices are booming and continue to grow as so many city folks are escaping to the simplicity of small town life.

Answer 2

I'm "old" so I would go toward the more liquid, conservative investments. I couldn't afford to have my money tied up in real estate when I retired. Individual stocks can be risky. I'd put maybe 1/4 into cash equivalents, 1/4 into double tax free bonds, 1/4 into indexed funds and 1/4 into moderately risky mutual funds. In other words, I'd spread the risk and possible gains.

If I were in my 20's, though, I'd keep some in cash equivalents in case of an emergency, I'd go more into small cap mutual funds and then pick an investment sector I was interested in (the medical field/oil & gas/whatever), really study it and take some flyers.

But that would only be AFTER I invested in myself -- getting a degree in business or architecture or some other field that grabbed me.

Answer 3

Stocks, private mortgage notes, and multi-family investment properties that have positive cash flow. Also, research some unique real estate investing opportunities in your area. I found one in my area that returns about 20% a year, with relative safety.

Stocks SEEM to have a better return in the long run, BUT with real estate you get a lot of leverage, so overall returns usually end up beating the stock market, hands down. The only problem is that RE is far less liquid than stocks.

If you are going to need the money sometime soon, keep it in stocks or bonds since you have more liquidity that way. You can also buy REITS which are basically real estate-based stocks.

Talk to an advisor only if you are completely clueless. But keep in mind advisors have their own ulterior motives (They need to make money so they will recommend whatever will give them a nice commission or make them money). They also err on the side of safety, which can hold you back from attaining real wealth.

Answer 4

With a half a million dollars, I would invest in all of the above. I want my portfolio to be versatile. I don't want to put all my eggs in one basket. Some investment requires a lot of work. I would want to pay more attention to investments that has less work and less risk. If I am looking to live off my investment then I would invest less in stocks, because of the unstable market. If I am comfortable in my financial position then I would invest mostly in land and mutual funds and wait. My final advise is only invest in what you are willing to lose, taking a chance is great and it is the only way to win, however don't lose your shirt in the process. I hope I was helpful.

Answer 5

I wouldn't put any money in real estate unless you want to lose it. Real estate prices are falling in most areas, and contrary to what one person said earlier, are going to continue to fall. If you can wait 6 months or a year, you might get some really good deals in real estate. Basically the rule of thumb is buy low, when something is out of favor, and sell high when everyone wants it. This applies to stocks, bonds, funds, whatever. Frankly, if I had half a million dollars, I'd put 35% in foreign dividend paying assets denominated in non-dollar currencies. I'd put another 25% in commodities (gold, silver, oil, copper, zinc, sugar etc), 15% in insured FOREX hedge funds, and the rest in a traditional portfolio of US dividend paying stocks, bonds, trusts ETF's etc.

In the US markets, you must insist on stocks that pay dividends. Most large cap stocks are overvalued and you'll pay 30, 50, sometimes even 100 times earnings for the share with no dividend. In this scenario, you're speculating; your only hope for profit is that someone comes along a bit later and pays you more for those shares than you originally paid. The DOW and NASDAQ are grossly overvalued, despite what the propagandists in the financial press want you to believe. Would you be willing, even in this hot market, to pay 50 times what a house is worth ? Why should it be any different with stocks?

Hope this helps,

Andy
www.my2centsonline.com

Answer 6

Use the money to buy a house at a city where you want to live in for the long term. Nothing like roof over your head. Use the rest to invest in a diversified portfolio of funds or stocks.

Answer 7

Stocks. Not property; we are in a real estate bubble. Mutual funds have a lower return. Stocks have the highest return out of those choices.

Answer 8

If you have the guts, invest in real estate. You can even invest in your own home. I don't have the guts, so I would invest in mutual funds, CD accounts, and maybe start a small business.

The important thing is to not 'put all your eggs into one basket.'

Answer 9

Yes, all of those. Important to diversify into several good quality invesment areas.

Answer 10

I would consult a professional adviser who stood nothing to gain but his fee for his advice!