what course of action should i take if i have $250,000 to invest? how should i do it?

Answer 1

I would invest it in real estate. Buy some fixer upper houses and sell them for a profit. It's a good job for someone with that much money and it's profitable. Or you could rent them out, let the tenants pay your mortgage payments while your equity increases each year....)(

Answer 2

First determine what is important to you, or what it is that makes you do whatever it is you do. Take some time to look inside yourself. Then you can list some tangible goals like financial independence, education, accumulation (boat, house, car, etc.) or anything that needs a lump of money to accomplish. Afterwards, put together your financial documents, all the investments you have now, insurance policies, reserves, expenses, taxes, etc, and put together a balance sheet of your finances. Put together a comprehensive package that includes insurance (term and cash value life), long term care, disability, investments based on modern portfolio theory, perhaps an annuity if appropriate either fixed or variable. Then take the steps you need to take to make it happen. Of course if all that sounds foreign, then either do the research or post another question like "how do I choose a financial advisor". It's good to know the stuff a little even if you do delegate it to a professional.

Answer 3

A paradox:

The poor man gambles and loses money he can not afford to lose.

The rich man invests cautiously and makes money he doesn't need.

There is always a reason that things are as they are! The poor want to be rich so they take chances. The rich are more worried about keeping what they already have. Be like the rich man, even if you're a poor man, and then you will become a rich man. Money flows into the hands that treat it best.

Suppose that we played a little game in which you have a stack of money to gamble, and suppose that on each play of the game, you stand to win or lose an amount of money equal to whatever you put at risk. So, for example, if you bet $5, you would either win $5 or lose $5.

Now then, suppose I am the house, and strangely enough I actually give you 55 to 45 odds in YOUR FAVOR.

If you are like most people, you will LOSE within about 20 plays or so--with the odds in your favor!! How does this happen? Because most people tend to underestimate RISK.

Suppose that you had $100 to play with. Suppose that you risked the whole $100 on the first bet. Then you would have a 45% chance of going bankrupt after the very first play!!

Suppose that you won the first bet, and then wagered the whole thing on the 2nd. Then by the 2nd play you would STILL have a 45% chance of losing on the next turn.

If you bet your whole wad on each turn, then your chances of surviving the Nth play would be (.55)**N. That's a number that gets real small real fast!! In 10 moves it is slightly over 2.5 thousandths. In 20 you're into the millionths of a chance to still be playing.

Suppose that you don't gamble the whole thing on any 1 turn, but only half. Then you'd last a little longer--but you'd still lose, for the same reason.

I don't know where the break-even point is; I don't know enough probability theory to calculate it. But at some point, gambling ever smaller chunks of money--you hit a magical point at which you accumulate wins faster than losses.

You want to do the same thing with your $250,000. Risk only what you can afford to lose. I am betting (no pun intended) that $250K is not easy money for you, and that you can't afford to lose the whole thing. Therefor, keep say roughly half of it "off the table", in something relatively failsafe like T-bills.

I do this, and my investment returns are roughly between about 15% to about 40% (ROI includes the part that's "off the table"; I'm good), depending on opportunities.

The rest of it can, if you like, be invested. Unfortunately it is out of scope for me to explain how to invest it, but I suggest dividing the rest into several different asset classes such as corporate bonds, dividend-paying blue-chip stocks, precious metals (both monetary metals and commodity metals in lieu of commodities per se), and real estate. Real estate is in a bubble that seems to be deflating, so you might want to hold off on it for a bit. When you are ready and the market is favorable, you can use REITs to buy part-shares of real estate.

Decide on percentages for each asset class. Then, once every one year and one day (to get long-term capital gains rates if you're in the USA), rebalance your portfolio. So for example if metals do great and REITs tank, sell some of the metal to buy some REIT. Rebalance the ratio once every year-and-a-day.

The reason this tends to work, is that by rebalancing you are "buying low" and "selling high", relatively. This strategy also discourages you from trading too often for someone who is not a very skilled professional trader.

This information is provided for educational purposes only and does not constitute advice to buy or sell assets, or not to buy assets. Do your own due dilligence.

Answer 4

That's really not a lot of money, but if you use it carefully and seek the assistance of a financial planner you should be able to make it work for you.
I wouldn't start any business ventures unless you are already skilled in running those particular businesses.
A good start might be to clear any consumer debt you have. That costs more than any investment can return.

Answer 5

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Answer 6

First, talk to people you know and respect and ask them who they use and how long. Get a referral and then move slow. I cannot tell you the number of people who regret their decision and then is costs them money to get out. ASK questions and do not stop until you are satisfied - even at the risk of sounding stupid. Understand the risk. I good adviser will take the time to explore your preferences. If they are quick then I'd be cautious!

Answer 7

I am a financial advisor working for Raymond James Financial Services. I advise you to contact one of our nation wide branches and speak with one of our representatives who will answer any questions you might have a allow you to set up a portfolio suitable to your lifestyle. Good Luck!

Answer 8

Take 20% and put it in PXN if it goes down 5% put in 20% more if it goes down another 5% put in another 20%. PXN now trades about $16.25. Put the rest in MM for now. Do your homework. Hold on to your asssets.

Answer 9

i would put some of it into a Savings account and the rest into various CD's that way your money will be working and growing for u! ING DIRECT has some great rates and bonuses contact me if intrested

Answer 10

get a financial ad visor ameriprise seems like a good one