What is the best way to invest large somes of money. Are bonds worth considering?

Question

I need to put some money away, before it becomes nothing

Answer 1

The bond market is dominated by institutional investors. This is because bonds (like stocks) are usually bought and sold in round lots of 100. If you buy 100 shares of stock, it will usually cost between $2,000 and $5,000. This means that someone with a few hundred thousand dollars to invest can have a well diversified portfolio.

100 Bonds, on the other hand, will cost between $90,000 and $110,000 -- so someone with a few hundred thousand dollars can buy two or three different bond issues.

If you want to put money into the bond market, you better be extremely rich, be willing to accept a non-diversified portfolio (which would be stupid) or you should put our money into a Fixed Income Mutual Fund.

Answer 2

It all depends on what you want.

The questions you have to ask yourself are:
1) What is your family situation? Do you have dependents?
2)How secure is your job?
3)What other assets do you own?
4)What is your Tax sitution?
5)What level of risk are you willing to put ip with?
6)Will you want the access to the money quickly or are you happy to put it away for years?
7)Your age.

You ask if bonds are a good idea- the first thing you need to remember is that there are different types of bonds Govermnet bonds (backed by the goverment) usually called gilts are very safe, Local Authority stocks - slightly more risky but still pretty safe and corporate bonds more risky still but have a higher return to justify the risk. (There are also investmnet bonds - a lot of these are linked to various stock markets - more risk but possibly higher returns). Bonds are definitley worth considering but you should not put all your eggs in one basket - you need a more balanced approach.

The generally wise thing to do with money is;
1) Pay off all debts (It's hard to earn more than you pay for borrowing)
2) Put away 3 months gross salary (incase you loose your job or have other emergencies) - this is best in an instant account or even perhaps a cash deposit ISA.
3) Decide on your future financial priorities and timelines - this will help you structure your investmnets to meet you needs. You can then decide how much to put into cash, bonds or equities (Or other investment vehicles.)
(4) Maybe donate a little bit to charity - spread your good fortune!)

Answer 3

Real Estate!
But-to-Let Mortgages!

It's the Only rational way to Make Serious Money!

Do some Research,find up and coming areas(Redevelopments and Inner City Regeneration).

Find your market (Professional City Dwellers),get it service Managed.
Go for a 2 year Fixed period-then evaluate it after that(If it's making Rental Income that more than covers your Mortgage & Running Costs-then continue for another 2 years!)Or Sell!

Far more reliable than ANY Financial Establishment! and Money Bond or Guilt!

Answer 4

Go and talk to professionals. There may be some here but you certainly would not want to base your investment strategies on something from Yahoo answers! Who are you going to sue if you get bad advice?

PS anything is worth considering. Just be careful where you put your money. You need to know what your appetite for risk is, and know what the risks are when making your investment.

Answer 5

Hi there,
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Answer 6

Hi, I'm Sean Toh from Singapore. I want to guide you through a comprehensive approach to invest large some of money. Because the question you asked is going cause you to lose your money if you just listen to the answers given by people without considering what is your needs from yahoo answers. Click the link below to educate yourself and get the answers on how to invest your large some of money.

Yours Sincerely
Sean Toh

Answer 7

Not being funny or anything but, you aren't going to get sound financial advice on Yahoo Answers.

Best speak to a Financial Adviser for the best possible advice.

You've got no-one to blame but yourself if you take the answers from here and rely on it when investing your savings.

Take some ideas from http://moneysavingexpert.com then go see a proper adviser.




Can't believe that some nugget actually put a down flag on this - what, would you invest your life savings based on something you found on here....come on! No, wait, have you invested heavily in an Exiled Nigerian Prince or did you get a really good deal on a container of Viagra?

Anyway, someones just put the same advice on again - so my advice can't be that bad after all. Suppose Yahoo Answers really is populated by 12 year olds.

Answer 8

Invest in financial literacy....anyone can give advice but its your money - your decision.
What is your cash flow requirements? Are you using this money to retire on, to live on, or to simply beat inflation? How much time can you tie up your money? What is your risk tolerance? How much work are you willing to put into your investment? What is your current education? What is your experiences?
The easiest way is not usually the best way.

Answer 9

Avoid banks & annuities. Bonds easily bought through Schwab in amts as low as $5-10k. If below age 50 need to have more equities than bonds. EAF - global etf. IAu - physical gold etf. RRE - Reit fund. Can always but some US Treasury Tips bonds that adjust for infaltion which is your ultimate enemy. [e-mail] if have more info so can go further.

Answer 10

i personaly reccomend the Patriot Bond with in 6 months you can cash it for face value and within 7 years you have doubled your investment

what ever you choose you should ask your financial institutuin they may have a different suggestion like cds