once a person starts earning is it wise to invest into real estate or LIC?

Question

one of my friend is into IT.and he is now working,he is thinking about what to do with his salary?wheter to invest into real estate or buy LIC policies?investing in what would be a wise decision?please guide

Answer 1

It is difficult to choose one or the other.

There are a great many investment options available, and all I can recommend is to diversify to spread the risk around.

You only listed two options, and there are many more.

It also depends on the country you are in.

Bonds are good investments unless inflation is higher than the returns.

Stocks are volatile, and even an index fund can lose value, maintain value, or increase in value.

You may also wish to look at liquidity. Real estate is not readily convertible to cash, and borrowing against it runs the risk of having to pay a high interest rate.

If LIC policies refer to Life Insurance Company policies, usually much of the initial investment is used for paying commissions to the selling agent, and they are often not available to draw money against, especially for the first couple of years.

I would recommend a diversified portfolio of investments.

Answer 2

Both not

while investing u have to consider

safty return% risk liqidity target hold period

accordingly divide it from

fd
nsc
lic
mutualfund - balance ELSS equity
stock delivey
commodity

etc

try aptistock freeware

detail see my other answers

or mail me

Answer 3

It sounds like you are a beginning investor, so I would advise against it. It may sound like a riddle, but when you/they know whether it is right for them, then it will be right for them.

Stick with what works - index mutual funds. Especially considering where the housing market seems to be heading lately.

Answer 4

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http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

http://www.san-diego-for-sale-by-owner.com

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com

http://downtown-san-diego-real-estate-views.blogspot.com

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html

http://downtown-san-diego-real-estate-views.blogspot.com

http://www.poway-real-estate.info

http://www.del-mar-real-estate.info

http://www.la-jolla-real-estate.info

http://www.los-angeles-real-estate-brokers.com

http://www.san-jose-real-estate-brokers.com

http://www.orange-county-real-estate-brokers.com

http://www.san-francisco-real-estate-brokers.com

http://www.sacramento-real-estate-broker.com

Answer 5

please direct your friend to daveramsey.com to learn what the banks did not want him to learn, to invest in him self first.
he needs to pay off ALL bills , save emgergency fund 1000 -1500$, save 4 -6 mths operating funds (can he say lay off , downsizing, fired , closed?) then with knowledge he can pay with money that isn't need into real estate.