I recently inherited 70k from a relative how do you think I should invest it?

Question

I'm 18 right now and I'm planning on investing it for 10-15 years. Any suggestions of how I should invest it to gain the most interest?

Answer 1

Look at NFI, they pay 18% dividend.
Look at LYG, they reliably pay around 6%

Answer 2

In the first place, it's nice to see someone 18 y/o who shows some level-headed smarts - and doesn't just blow it.

Real Estate is always a good start, but you need to be very savvy about the area and the market trends in the area to make anything come to fruition inside of only 10 years.

Another way would be to go thru a respectable source of investing in an up-and-coming business. Something that shows that there is a need for it and the market is "ready" for that product or service. The risks are very high, so proceed with extreem caution.

A conservative, but stable source would be to buy bonds from a Church or other established company that is trying to expand.

Other bonds would be utility companies or towns that are trying to fund projects.

Of course, there are CD's and savings accounts, money market that are insured by the government, so they are the safest.

Whatever avenue you choose, try to not put all your funds into one spot, mix it up, and only risk that of which you will not "miss" should it fail. The higher the payoff = the higher the risk. You are only 18, so losses will not hurt you as much as someone 50, because the earning years are starting for you and you can make up the loss fairly quickly. By the time you are 40, the employment opportunities drop off along with the salary offers, so keep that in mind as well.

And **** never invest emotionally ****.

Answer 3

I know more than one that a relative gave money to. They, separately, used it to fund a businesses that they always dreamed of doing. Some folded and others not, but the relatives were always proud and pleased to have given the opportunity to try. Maybe you could do the same. I just read in the recent Readers Digest how the Subway sandwich shop chain started from an idea and a lot less cash than you have. Think about it. You may have to let the banks hold most of it (CD rates are pretty decent these days) while you get some special training, but when you are really ready, it is there. Good luck.

Answer 4

well what do plan the next 5 years as far as your career I suggest you spend it on getting that started thru training or education. You cant possilby have a good enough carrer at that age to invest yet you need to use it to increase your wage earning value.

10 years is really not so long as you think I go very conservative if you dont need it to secure your career training . Something like US Savings BOnds. Why because even if you get better at that short time it wont make much difference better to play it safe and still have something to show and invest the rest latter when you have a longer window. At most 50 % Bonds and 50 Stock Mutal Funds. But really make sure you have some savings say 7k and
you really need that training for your future earnings.

Answer 5

Go to bankrate.com and find a bank that will pay you the highest yield on a 6 month CD. You should make at least $3500 per year in interest. This is to buy time.

In general, the U.S. real estate market is dropping. For now, they are calling it an "adjustment," but no one really knows if it will turn into a bursting bubble. Also, the stock market has been hitting new all time highs for the past month. I'm not saying that you shouldn't invest. I'm just saying that now is a particularly scary time, especially with many predicting a falling dollar and recession in 2007.

Before you commit your money to the stock market and/or real estate, you should study and learn for yourself the risks and rewards involved. Beware of salesmen and brokers. They work off of commissions and may not have your best interest at heart. Just don't invest blindly. I've been there, done that and lost quite a bit of money.

For stocks, I recommend subscribing to Motley Fool's Stock Advisor. It's a monthly newsletter with their best stock recommendations. Of course, you could do your own stock research. For real estate, I would talk to people in your area with real estate expertise. Look into foreclosures to find good prices. Do your homework before you put your money at risk.

Answer 6

Though far from a long term interest investment, I’m looking for a financial partner in starting a company. I’ve owned a small LLC previously and a music organization with presence in over a 100 countries. I'm not going to post my private email here, but I’m fairly certain you can contact me through my profile page.

If your not interested in Angel investing – your safest bet would be to invest in mutual funds, CDs, start a 401(k) plan… you get the picture – diversify. I wouldn’t invest in real estate just yet for fairly apparent reasons. Good luck, drop me a quick email if you would like to talk.

Answer 7

I'd invest it in real estate. Thats a huge downpayment on a house or a downpayment plus a few years worth of mortgage payments. Owning a home is one of the smartest investments you can make, plus you'll have your own place. It will appreciate as well. If you're going to college consider putting it in an FDIC insured account until you graduate and can get a job and qualify for a mortgage.

If you're not going to college and getting a job you can buy now, or wait until you feel comfortable buying.

I'm not talking about flipping, or some other BS hustle, I'm talking about a place for you to live, and possible have roommates for even more income.

Good luck!

Answer 8

that is a ton of money my friend for someone your age. please don't do anything stupid with it. go and talk to an investment broker at your local bank. you must make good common sense decisions on what to do with that money, and I'm guessing you don't know where to begin. you could invest some in a roth ira if you have a job. investing is something that you want to do your whole life, not just a few years like you say in your message. if you just invest in good quality mutal funds, and most important of all...............leave the money alone!!!!!!!! just pretend that you don't even have the money, don't go out and spend it on a new car or waste it.......someday you could be very rich.....investing in the stock market is a long slow process, don't even tell anyone you have that money because everyone in the world will be telling you how to invest it or they will be coming to you wanting to get a loan or have you invest in their ideas.......I used to be an Investment Broker, email me if you have any questions. keep your head on straight and you can be rich someday. good luck

Answer 9

The markets in real estate and energy stocks have kind of peaked . . .
Put the $$ temporarily, in a 5% CD or esavings (like ING or Citi).
Start to study investing and check the Yahoo finance page on a regular basis to see what the trends are.
Motley Fool also has some interesting takes on $$ .
Also start watching stocks of companies you understand and see when a good time to buy them would be .
Charles Schwab is a good company because the agents are not paid commission, so there is no sales pressure . . . you make all your own decisions.

http://finance.yahoo.com/education

Answer 10

I would suggest allocating 5-10% into a money market fund or short term cd for emergency needs, 70-90% into equities..the difference if any into a bond fund. Within your equity allocation put 1/3 into an index fund, 1/3 into a global no load mutual fund such as Oakmark Global fund, and 1/3 into a no load small cap fund.

Answer 11

Split it up. 40% for the future.
10% towards the stock.
10% towards a CD account,
20% towards fun.
5% towards debt cancellation.
10% towards tithes.
and 5% towards a business or small investment for you or someone you love/know needs money to start a business.