I have 20k to invest. What should I invest into.?

Question

Right now I just have a money maker account @ 5% but I was thinking about investing in stocks.

Answer 1

Yes, diversify. And do your own research into the different investment options and industries. Research will reduce the chance of a bad investment.

Answer 2

start a business, or buy a home to rent out. or spend some time learning about reading financial statements and how the stock market game is played before buying any stocks.
to quote robert kiyosaki: "Rich dad's concern was that the Western world would not only have a health problem, a health problem caused by too much fast junk food, but we would also have a wealth problem, a problem caused by too much fast junk investments. He said, 'Any food or investment that is too easy to buy, overly advertised, wrapped in convenient attractive packages, with sales offices & salespeople on every corner, is probably not good for you.'" i also learned from him that diversity is something that is really stressed for those who r ignorant (so it's a type of sale pitch)...and these people don't really look into what's going on in the market...so diverse protfolios is not necessary if u truly understand the stock market.
i think 5% sucks! u r not maximizing the use of ur money. u have been settling for less & have been sold into their sales pitch...this is not the way to go if u really want to multiply ur money.
also learn from the rich...don't ask other poor people what to do with money...u also must learn what kind of approach to life they take.

Answer 3

I'm guessing that you aren't very sophisticated. It's called a money market fund not a money maker. We all have to start somewhere and this is where you are starting from.

Try a lifecycle fund at Vanguard. Vanguard has very low fees. There's an artice below on lifecycle funds from USA Today that explains the funds in simple terms.


http://www.usatoday.com/money/perfi/retirement/bw/2002-07-18-portfolios.htm

One more thing, don't go to the bank manager. I know a heck of a lot more than 99% of those guys.

He/she will send you to the in house finanical advisor who will put you into funds with high fees.

Answer 4

5% is decent. Historical crashes in the stock market could lose all $20K or could make you $20K more. How much of a risk taker are you??? Once you have answered that let your conscience be your guide, to coin a phrase. Might I suggest reading a few books??? I like Suze Orman's advice. Check her out at the local library.

Answer 5

try and find a REIT, check you're local paper for "hard money lenders" or Private Investors for Real Estate Backed Securities...

I lend out notes between 15-150k at not less than Prime + 8% that's the cap rate here in CA.

That's 16.5% ROI every 12 months and it's a secured instrument. I've yet to find a safer investment but you have to be well networked to get in on it, just make some calls or if you're in CA I can point you in the right direction. Oh, and you can take a few points up front...

Answer 6

According to Rich Dad Poor Dad.....one of your best investments is actually REAL ESTATE.......also finding a home based business where you can actually work from home. Do some research to see what's out there.
What I did was get started in Photomax. It's incredible... you can check out my web at www.bedavis1.mywayout.net......heck if you like what you see fill out the form and my partner will call you (I'm deaf so she does my calls!) It's really worth looking into... If you don't like it, then it might not be for you, but you never know. But like I said, Rich Dad Poor Dad has lots of awesome ideas..pick up the book at your local book store. He's incredible and easy to follow....he's always suggesting Network Marketing and Real Estate.....that's where the money falls in :)
Good luck!

Answer 7

Invest most of your money into long term bluchip stock, invest a small amount into high risk (keep an eye on it). Invest some into your bank accounts (so that the bank people will like you) and then spend like $1000 on yourself.

Answer 8

If the 20k is important to you, by all means diversify. If, on the other hand it is chump money, take a controlled flyer on a company you have researched and belive to have a super growth potential. There are a number of them around.

Answer 9

for the 20k to be invest well i would divide 5k into groups 1250 and put that in 2-4-6-8 CD or bonds and roll them over.the other 15k put in stocks and mutual funds or into the foreign exchange market.

Answer 10

Ummmm, talk to a bank manager about mutual funds and stocks I suppose. They would be more qualified than anyone here to answer that question.

Otherwise take an annex course on investing in stocks. I did that a couple years ago.