It will be the bulk of my retirement in 20 years. How is the best way to safely invest it where it will still grow the most?
2006-10-31 21:09:45 · 6 answers · asked by starrynight1 7 in Business & Finance ➔ Investing
Low debt and I'm 45 yrs. old. I'd rather not say how much.
2006-10-31 21:29:13 · update #1
Do you have a Roth IRA? If not, you should. If you're married, open one for your spouse as well. You're capped to how much you can contribute per year. It's best to contribute periodically in smaller increments for dollar cost averaging (DCA) (but do the max per year if you are able to...).
Depending on the amount of money you're talking about and your income level, the Roth IRA may not be an option for you. In that case, look at a Traditional IRA. (If you're eligible for a Roth, you can open a Traditional as well.)
Diversify from that point. Since you're in your 40s, look at short-term investments: bonds, CDs, etc. U.S. Treasury bonds are safest as they are guaranteed. (NOT bondfunds. Poor choice.)
Make sure you have an emergency cash fund in a safe place (savings account). Look at money market account (MMA) or high yield savings account as well.
PS: Pay off your debt first. The only exception may be a house for tax purposes.
2006-10-31 21:28:32 · answer #1 · answered by Peanut™ 3 · 0⤊ 0⤋
The short answer is a well diversified mix of stocks, bonds, and cash investments. With a 20 year target, I would probably go with about 70% stock, 20% bond, and 10% cash.
The real answer is that it depends on a number of factors. How much money? Your current age? How much debt you have? It may be more worthwhile to pay off high interest loans and credit cards than it is to invest the entire amount. There are other things to consider such as tax impact, how much you are saving now from your regular salary, how much and where you have your savings invested currently, etc... Too much really to handle here. I suggest a certified financial planner. Find one who has experience handling estates and possibly one with a CPA working in his/her firm that can assist with the tax issues.
2006-11-01 05:24:28 · answer #2 · answered by troythom 4 · 0⤊ 0⤋
Have to get it away from banks & annuities. You lose purchaing power after taxes & inflation in a bank acct-guaranteed. 4% minus 1% for taxes when inflation over 3% is a recipe for disaster. The market is not an all or nothing thing. Proper diversification reduces risk. Gold, International stocks, Index funds - put together a good portfolio NOW & leave it alone. That money in the bank wll still be there but will leave you out in the cold come retirement as will not keep up with inflation. vegas_iwish@yahoo.com if qs.
2006-11-01 10:36:03 · answer #3 · answered by vegas_iwish 5 · 0⤊ 0⤋
Give the poeple at Fidelity investments a call, they have the best funds. you might also want to research on Soros Quantum Fund. they have a very high return (35% yearly) in the past 26 years...
2006-11-01 05:19:37 · answer #4 · answered by Bitstorm 3 · 0⤊ 0⤋
Try http://www.prosper.com
The online marketplace for people-to-people lending
You set your own rate. Earn a fair return and support borrowers you can trust. It's easy.
2006-11-01 21:29:20 · answer #5 · answered by Rena 3 · 0⤊ 0⤋
stock market
2006-11-01 05:12:50 · answer #6 · answered by marikit _ako 2 · 0⤊ 0⤋