if I had 20,000 thousand dollars to invest or whatever what would be the best thing to do to make a profit??

Question

start a business?? invest in stock/which one?? etc...

Answer 1

If you can find a piece of real estate with 20,000 down, and rent it out where the monthly rent covers the mortgage payment and property taxes, that would be a great investment.

Not only will the renters be paying the mortgage and expenses, but the rental property should grow in value, plus the renters will be paying for you to grow equity in the place.

You of course also get a nice tax deduction from mortgage interest and property taxes.

This is not an easy investment to make. It will take some research on your part, finding a good rental home where the rents can cover the expenses, and finding a good loan to keep the monthly payments low.

Don't get any weird loans like an adjustable rate or interest only loan. If you can't make this work with a standard 30-year fixed rate, then walk away.

If you wish to make a more passive investment, I'd advise buying some index type no-load mutual funds from Vanguard. Their funds are very low cost and if you buy a few funds that spread the investments around, you should have fairly low risk. Maybe 50% in the total domestic stock market fund, 20% in Foreign markets, and 30% in the Total Bond fund.

Answer 2

You have several options. First, though, begin by answering a few questions: would this be short term or long term? Do you want to put in a lot of effort personally, or keep it low maintainence? Finally, do you want to make this a high or low risk investment.

Long term, personal action or high risk investments get you larger returns, but you can see there are also drawbacks. The other options are easier and safer, but you would not earn as much on your investment.

With money like that, I personally would consider using it to start a small business, like opening a bar. I might set some aside to play in the stock market. If you would like that route, I suggest doing some research with MotleyFool. Then sign up for a cheap online brokerage account, such as with eTrade or Scottrade, where trading is cheap.

The smartest choices would probably be investing in the money market with mutual funds. Charles Schwab would be a good place to start. You buy a portion of a portfolio they have put together of stocks. They do most of the work for you, and having spread the investment over many companies reduces risk.

My personal favorite are funds that you purchase online through companies like ING Direct or EmigrantDirect American Dream account. These act like savings accounts, but provide you with a tremendously higher return (like 5% interest). A large benefit here, as with stocks, is liquidity: you can pull your money out of the investment fairly easily with little or no penalty.
However, there is almost no risk unlike stocks, as your funds will be federally insured, so you are protected from loss.

If you are interested, you can put that money towards a down payment for a house. Investing in real estate can earn some spectacular returns on your money. Remember, though, it is risky, and it will likely require much more investment over time than 20,000 (unless you turn around and sell it). But that will take much more time and effort than you might want.

I would probably go
Hope that helps.

Answer 3

just got a tip on weds of last week that jamba juice is going to skyrocket- buy stocks

or... you can short the orange juice market in commodities- you will get a daily return on this investment... but don't bet your whole wad- you need some money in the account for margin calls- when the price fluxes you will be liable for the money involved until you turn a profit

if you start a business, you will always be working- why not invest and let your money do the work FOR you?

Susan

Answer 4

I'd say put half or three quaters in the bank and let it grow slowly Take the other half and invest in stock. Try to invest in stocks that are needed like utilities etc etc make sure your portfolio is diverse meaning say 60% in low risk 25% in medium risk and 15% in high risk. That way if the high/medium risk stock tank you'll still have the majority of your money. I don't know which stock though.

Answer 5

The more money you want to earn in a short time, the more risk you have to take. This means, sure you can earn a lot of money it you take high risk, but there is also the chance, & more so, that you will lose a portion or maybe even all. A little bit of greed is good; too much greed can cause your downfall. I'll go ahead & answer your question anyway. Speculative Currency Trading Never heard of it? My advice, don't do it.

Answer 6

I would learn about the stock market and pick ten stocks that you understand (like Exxon because you buy gas, for example). Or, you could buy perhaps five mutual funds, one U.S., one international, one aggressive, one conservative, something like that). That will help you be diversified so you don't risk it all on one thing. But you'll need to study up first. I would read one of Suze Orman's books to get started.

Answer 7

put it into an interest account or start a business. remeber most business dont make a profit until after 2 years of trade so you will have to be very careful

Answer 8

legisi is the best way, I know a couple a ppl who are making a living with dat

Answer 9

Buy a house. Home ownership can make you rich!

Answer 10

short term: try investing in small cap companies (be careful)

long term: ROTH IRA