what are some investments that someone with 50,000 liquid can invest in that will preserve capital?

Question

I am looking for a place like a cd account that preserves/garantees principle. I have seen a couple mortgage companies likehttp://www.axiomrealtycapital.com/
http://www.rescapfunds.com/
that say they will preserve your capital. The reason I do not want to invest in cd account is because it offers to low of returns that are useless due to inflation and taxes.
I do not care if they don't offer fixed returns but as long as my principle investment stays secured I will be happy. And the "possible" return is greater than a cd account.

Answer 1

2 good options:

You can get a good balanced fund. Better returns and assett protection.

Also, you can get an annuity with potential for growth. Stay away from Indexed Annuities, its a huge scam that pays the seller 10 to 12% of the investment.

Good Luck!

Answer 2

You contradicted yourself in your question and the statements following. In your question, you say that you want to preserve capital. In the statement following, you say you don't like the investment that preserves capital (CD) because you want a higher return. So which is it?

Keep in mind the trade off between risk and reward. A CD from a good bank with FDIC insurance has extremely low risk, hence the low return. For every increase in return, the risk to your principal is going up as much or more.

For someone to truely answer your question, they would need more information. What is the intention for this money? How long do you have to invest? Is it in a taxable account or a qualified account? What is your tax rate? Etc, etc, etc.

To have your question answered properly, you should consult with an experienced financial advisor.

Answer 3

www.emigrantdirect.com savings account 5.05%, Suzy Orman talks about them on her show. I have one, works great. But you'll only beat inflation by about 1%.

It's all about time, if you are going to invest for 10 years or more then buy and hold a mutual fund(s) like a vanguard total stock market fund VTI. It actually may be a safer investment than savings when inflation is taken in to account.

Answer 4

No fund can guarantee Preservation of Capitol.

Higher returns ALWAYS mean higher risk.

Econ 101

Good Luck!

Answer 5

Check out Treasury Bonds

Answer 6

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Answer 7

I know a company currently ofering 13% per year.

Top 5 Answerer.