2006-11-09 12:30:52 · 9 answers · asked by knowitall 3 in Business & Finance ➔ Investing
It depends upon your financial and life situation. A retiree on a fixed income that is struggling will have very different needs than a 22-year old coming out of university.
1. Ask yourself what your appetite for risk is. Is the fear of losing 10% of your money three times greater than the joy of making 10%? Do you have a burning obsession with living a certain lifestyle when you retire? Are you a worrier?
2. Look at your future cash flow projections? Do you want to have kids soon? Will you go back to school? Are you going to buy a house soon? Is your car on its last legs? Is this investment for the long-term (i.e. 50 years or 50 days?).
3. Use that information to map out what you should do with the money. The trade-off is risk for rewards. Higher rewards come with higher value volatility. If you are young, having improving outlook for future income and don't have any imminent cash flows coming up - put it in riskier assets. If you are older, have needs for the cash and are a bit squeemish about losing money, put it in less risky assets.
Riskiest assets:
Illiquid assets (art, wine, over-the-counter securities)
Private Equity (including own businesses)
Currencies
Commodities
Risker assets:
Junk bonds
Stocks
Real Estate
Less risky assets:
High grade bonds funds
Very little risk:
Goverment bonds
Negative value investments:
Depreciating assets (e.g. cars, consumer items, boats)
Bank accounts (i.e. earn less than inflation)
Cash in coin/bills
4. When you buy, purchase a diversified portfolio. On average, you will have the same amount of returns for less risk than a non-diversified portfolio.
If you are asking Y!Answers, you are probably need a little help:
a. Look at Vanguard for no-load funds. Pick a globally diversified fund.
b. Look to invest in high-grade government bond funds. Those funds are also available at Vanguard. I do not recommend high-yield bonds now as expansion of the yield spread should overcome any decrease in short-term rates. In other words, the higher return is not worth the risk.
Hint: Take a look at your total net asset portfolio (what you own less debt). If you are an average Joe, you should be about 50-80% stocks, 10-40% bonds and 0-10% others (e.g. commodities) without your house. Including your house, you should be about 25-50% real estate. 40-60% stocks, 5-30% bonds and nearly nothing in others.
2006-11-09 12:53:04 · answer #1 · answered by csanda 6 · 2⤊ 0⤋
Fund a tax-sheltered or tax-deferred future annuity like a ROTH IRA, use this to make your investing; there's plenty of advantages that you should do your research now.. its not an investment remember its a tax shelter use this to do your investment choices like individual stock or mutual funds
2006-11-09 16:23:51 · answer #2 · answered by Nate 2 · 0⤊ 0⤋
2006-11-09 12:32:23 · answer #3 · answered by us citizen 5 · 0⤊ 1⤋
ETFs, Mutual Funds, REITs, Stocks and Options.
2006-11-10 12:55:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Nike is going up pick it to invest
2006-11-09 13:16:25 · answer #5 · answered by CrossCut49 3 · 0⤊ 0⤋
Send me money.
It's an investment in my future.
You could probably do better if you're selfish.
2006-11-09 12:38:14 · answer #6 · answered by loon_mallet_wielder 5 · 0⤊ 3⤋
the stock market
2006-11-09 12:33:56 · answer #7 · answered by Anonymous · 0⤊ 1⤋
might I suggest prosper . com check it out if it's your thing go for it!!!!
2006-11-09 12:40:51 · answer #8 · answered by eddy r 2 · 0⤊ 0⤋
RIGHT NOW ALT(ALTEON) SELL AT $2+
IMO
2006-11-10 12:09:09 · answer #9 · answered by vetech_61 2 · 0⤊ 0⤋