I am 27 years old and have $100,000 to invest. What are the best ways to invest in order to have a million...?

Question

dollars in 12 or 13 years?

Answer 1

I'm in a similar situation and here's what I've learned:

First, it's great that you have a goal. Without one, you won't get anywhere.

Second, make sure your goal is realistic. Setting a wildly unattainable goal only leads to dissapointment and frustration. No one *knows* how to reliably earn the 20% (tax-free) return you would need to accomplish your goal.

Third, you're relatively young and not knowing anything more about you, high-risk investments should be easier for you to recover from, although 13 years is not enough. You might as well be 52 years old and planning to retire at 65.

Fourth, diversify. Enron, Worldcom, Tyco. 'nuff said.

Fifth, if you're employed, max out your 401k contributions and Roth IRAs. That's a great way to get the cash you have now into a tax-advantaged account. It's probably too late to max out your 401k this year if you haven't already started, but if your income is appropriately low, you can get a Roth. Then for 2007, put in the maximum $15,500 as quickly as possible. Some employers let you put almost all of your paycheck in. You can live off the cash you have.

Sixth, research. Knowledge is power.

Seventh, avoid the urge to day trade. Unless you are skilled at doing it, let the pros do it for you.

Eighth, don't forget about you money. I just realized that one of the real estate funds in my 401k plan has been averaging a 40% return over the last five years. Everyone and their mother knows that real estate has been booming the last several years. Why didn't I put my money if a pretty obvious investment? Because I forgot to care.

Ninth, don't sweat the losses. Average mutual fund returns are more like 8 to 9%. And that's averaged over several years. Some years are 15%, some are 0%.

Tenth, keep saving by building a budget that meets your needs, not your wants.

Hope this helps.

Answer 2

If you are 20, you commonly nonetheless qualify for a tax deduction on a Traditional IRA. Open an account, positioned the allocated $5000 into it and positioned it into an index S&P 500 fund at the same time you're discovering different investments, like shares. If you normal 7% in line with 12 months (no longer too tough to do) and upload $5000 each 12 months (for you to end up a lot less complicated to do as your cash raises), then whilst you are fifty eight you'll be able to have a million.06 million greenbacks. If you upload to a 401K, this would quantity to a couple of thousands. ///

Answer 3

You should see what the best traders are buying and selling and why. check out http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Here is a link to the stocks I have in my Top10Traders portfolio:

http://www.top10traders.com/ViewPortfolio.aspx?userID=5

My favorite stock right now is Energy Conversion Devices, ENER. They make the batteries in hybrid cars.

Good luck.

Answer 4

In the stock market: BUT!! Make sure you study up on stocks and investing thoroughly before making a move. In the meantime, put the money in a high-yielding CD as the first answerer suggests.

Answer 5

Firstly you should diversify your investments.

Most lucreative business is stock and forex trading. So you should find a trader who accepts private investments.

I'm a forex trader-analyst and I accept private investments. Usually I pay to my investors not less than 5% monthly for 12 months.
Reasonable investment amount is US$10000 (ten thousand) and above, but minimum could be from US$2000.
If you are interesting in private collaboration then PM or e-mail me (press on my name) and I indicate you further investment details.

Answer 6

Invest in mutual funds, they are reasonably safe and offer pretty good returns. But consistent 20% annualized return is hard to achieve. The 2nd richest man in the world, Warren Buffet, has an annualized return of 20.4% over a 60 years period.

Answer 7

The stock market would be the fastest way, given that you know what your doing. Other than that if you want a safer way-a high yielding CD compounded continuously. I'll give you a website where you can use some calculators.

Answer 8

invest in stockmarket . You will be worth five million dollars in 10 years plus dividend income $ 130000 per annum. Pick high growth blue chips stocks which has high return on equity and small cap stocks

Answer 9

Click on http://www.4xmoneytrain.com
This is the best way to invest your money to make a million.
You hedge your positions to minimize your risks and loses and at the same time you collect huge profits from interests and fluctuations in the market.

Answer 10

I would advise you to pick some blue chip stocks and some bonds- mutual funds like Vanguard (no charge) but don't go crazy put some in an IRA and a good CD