I need to invest 80-100K from the upcoming sale of my home, how should I invest it?

Question

I don't know much about mutual funds, but I'm told if I were to invest 100K over 10years there would be about 400-440K. This was assuming roughly a 15% return per year. I was told this is on the side of a non-aggressive fund. Or is this probably an aggressive fund? So, in a nutshell...I would like to invest this money somewhere for about 10 years until I'm ready to buy another home...

Answer 1

If you are selling a home, you will be responsible for gains taxes. Whatever is left you can invest. Mutual funds are a good choice for your requirements. Makes sure you are getting a reputable broker (not someone in Florida) and look for a fund with no load fees. See: http://www.productresearch.info/marketplaces/mutual_funds.cfm?source=clicksor&keyword=MutualF

Answer 2

15% is a little optomistic for a mutual fund. 10% would be a more realistic amount. There are mutual fund that have performed almost that well over a 10 year period but not very many. Maybe 1 in 100. And that is no guarantee that they will perform that well in the future.

Your best bet in my opinion of having a reasonable chance of making better than 10% is to divide the amount into 5 parts. Invest one part in a small cap fund such as PENNX with a 10 year return of about 13%. One part in a large cap value fund again with a 10 year return of about 12%. One part in a fund that invests in Chinese stocks with the potential 10 year return of maybe 15%. Or possibly split that amount into two and invest the other part in a fund that invests in Indian stocks. One part in an S&P 500 index fund. That type fund has performed very poorly recently. It is about due. One part in a growth stock fund. These type funds have also performed very poorly recently. They are about due.

Answer 3

Read a few books on Investing before you seek too many peoples advice. There are A LOT of people that would love to spend your money for you. It's your duty to find the investment that will best suit you. Don't just blindly think that somebody else knows enough to make you money.

Real Estate or Mutual funds are both good investments, but you need to know something about it before you jump into either one.

The mistake that most investors make is that they are impatient. The money won't go anywhere unless you spend it or invest it in a losing proposition. Take your time and learn all you can.

Good luck.

Check out, "Real Estate Investing 101" and "Rich Dad, Poor Dad"


Here is a link to some great books on stock etc.

Answer 4

You need to be careful. Do some reading: newspapers, books, internet, ask friends, develop some realisitic guidelines for what your investment can logically and more importantly SAFELY can earn.

Try to get a financial adviser - only a Fee based one (those who are free have suspect advice since they may be paid to sell certain investments).

Don't be in a rush. In the meantime, put the money into the highest interest bearing bank savings account you can find (I use ING - and have used it for several years.) So you can take the time to make an INFORMED decision.

Good luck.

Answer 5

Read. Educate yourself on how investments work.
Once you know the basics, take a piece of paper and write down your goals in life (when to retire, things that you want to do etc)
With this list, go to a financial professional en let them help you pick some mutual funds.
Since you do not know a lot yet I would suggest you stay away from stocks

Answer 6

How you invest depends on a lot of things, including your age. With that amount of money, I would highly recommend a financial advisor/analyst.

I use one from Ameriprise, and have been very satisfied. I have a combination of high- and low-risk investments.

Answer 7

PAEAX or PABAX. easy, actively managed by a team of pros, lower than average expense ratio, beats peers consistantly.