What is the best way to invest 100k safely? I am 34 years old.?

Question

I am not looking for something high risk or aggressive. I just want it to grow annually at a good return rate. Thanks in advance.

Answer 1

Rather than give you the standard asset allocation response I will give you something to consider....you stated that you want to avoid risk....many people your age don't fully understand risk and fail to realize that placing the majority of your money in low return "safe" assets such as cds and money markets is actually a very risky strategy. The reason is that many fail to realize the full impact inflation has on their purchasing power over time. When you said you want to avoid risk what you really mean is you want to avoid volatility.....in order to ensure your purchasing power isn't eroded over time you must embrace volatility as a good thing and diversify appropriately among many asset classes including stocks, bonds, real estate, cash etc.

Answer 2

How To Invest 100k

Answer 3

This Site Might Help You.

RE:
What is the best way to invest 100k safely? I am 34 years old.?
I am not looking for something high risk or aggressive. I just want it to grow annually at a good return rate. Thanks in advance.

Answer 4

At 34, most want a little more risk than what you want. I think that real estate is still an outstanding investment that can be very safe. With the $100,000 you can control over $1,000,000 in real estate. If that Real Estate increases in value at a conservative 3% annually, that translates into a 30% return on your investment minus expenses - so realistically 26% after all is said and done.

Beat that in a low risk stock, bond, or CD !

Answer 5

invest 100k safely 34 years old: https://tinyurl.im/e/what-is-the-best-way-to-invest-100k-safely-i-am-34-years-old

Answer 6

I would go to Edward Jones, or any other financial firm and tell them your situation and they will come up with a plan that will set you up for retirement with a very comfortable investment account. They will probably recommend a well diversified portfolio with good solid stocks, mutual funds, some cash and so on. Some aggressive that have been proven movers in the past, and some not so aggressive with lower yet consistent returns. going to Vegas is not a very good option though. good luck

Answer 7

Try either an Equity Indexed Annuity or Fixed Annuity or both. These are accounts with Insurance Companies that are guaranteed. The Equity Indexed gives you the flexibility of unlimited growth based on the S & P 500, without ever losing a dime when the market is bad. The Fixed is an interest bearing tax deferred account that grows at a higher rate of return then most banks can offer on CD's or Money Markets. Using your age and your goals of no risk I'd recommend about 35% in the fixed, and 65% in the Equity Indexed. Unfortunately people do not know this is a great option for most people (not all), and brokers don't recommend because then they make no more money on that money you invested until the annuity matures. They always recommend stocks, mutual funds, and bonds. Better money maker for them down the road. Message me and I'll give you some names to check out that offer no annual fee or broker fee Annuities.

Answer 8

It depends on what you define as risk. For lowest risk in terms of not losing dollars, your best choices are FDIC insured CDs, Government Treasuries, or FDIC insured Money Market Funds.

If you go with anything FDIC insured, get two accounts from different institutions. The FDIC only insures you to $100k per account, and with interest, you will be over $100k fast.

In the long term however, you may suffer from inflation risk. Basically, the risk that the paltry intrest you earn on these safe investments eat away at your earnings and principal. The account goes up, but inflation goes up faster, and you are able to buy less and less.

TIPS (Treasury Inflation Securities) are a type of US government bond that automatically indexes for inflation, and gives you about 2-3% above that. This helps protect from inflation risk, and, since it's a government bond, is a very safe investment.

So, if your timeframe is short, go with money markets. If you timeframe is longer, go with CDs, Bonds, or TIPS.

Answer 9

If you want a safe investment you should check into money market funds or a high yielding savings account.

Answer 10

If you look at the S&P500 (see it at businessweek.com) and go to their scoreboard, then sort it by profits you will get a list like this: XOM, C, GE, BAC, CVX, COP, MSFT, JPM, WMT, MO (if you want to dump a couple of oil companies, try substituting JNJ and PFE, the next two down). Then divide your money among the 10 you decide on. Most of them (Microsoft excluded) pay a decent dividend as well. I did that in a portfolio for about half of last year and it went up almost 40 percent.