I am interested in investing and I would like to know which method is best tax deeds, stock, or mutal funds?

Question

If you could please rank the 3 and provides reasons why/why not. Thanks

Answer 1

What might be best for one person, may not be for another. For myself stocks and mutual funds are pretty much an even up proposition. I would not even consider tax deeds. Too much of a mess. A 1000 page book could be written on mutual funds vs stocks. Both have pluses and minuses and both if used properly can enhance ones investment returns.

Answer 2

Someone just said with tax deeds it is too much work and you have to run to the courthouse. That is incorrect. Tax liens and tax deed sales can be done online, by the phone, or the mail.

Tax liens are much better than stocks and bonds because the interest rates are secure, like in Florida 18%, Arizona 16%, etc. If people do not pay their debts and interest, then the property belongs to you.

Please note you should diversify your portfolio. I have stocks, I have tax liens, and bonds. But the most rewarding and biggest returns are tax liens -- I bought a 5 acre property for less than a grand and flipped it after the tax lien foreclosure and bwam, 250% return. But I did make my mistakes though early on in the game, so I suggest reading a book. Here's a book I always bring to the tax auctions online or in real live ones.

Answer 3

All are actually good investments if you are professionals, but here's why I rank the following if you're not.
1. Stock - easy to buy/sell, and easy to learn value investing (warren buffet way) to gain 15% compounding gains, and never lose money (play the market with a margin of safety). (risk is lower with correct and disciplined strategy, gain is higher)
2. Mutual Funds - Easy to invest. worth while for those who consistently put money into the fund. (401k) Fund managers earn money based on the amount they trade so they're not as eager to perform like hedge fund managers. Average is around 5-8% compounded gains. Risk is lower, but gain is also lower.
3. Tax Deed - too much work. have to run to court houses, find info on other liens, evictions if they don't pay up, court fees, sheriff fees etc. Has high gains, but also has high risks.

Also with stocks and mutual funds, you can invest using tax deferred (401k, life insurance) or tax free (Roth IRA) money, this will in turn give you a better return.

Answer 4

If you are interested in long-term investments (more than 5 years) use mutual funds. Make sure you invest in one that has a long track record (around 25 years) of about 10 to 13% return. Mutual funds don not make good short term investment. When you go to invest make sure that the broker is willing to talk to you and help you understand. You should never invest your money where you don't understand. Hope this was helpful.

Answer 5

Funds and stocks will take you where you want to go.
Put a decent amount/percentage in a conservative/balanced mutual fund ..then add a couple of dividend paying big American companies...and learn to "trade" short or longer term with about 10/15% of your money.
Reasons: Funds and div-stocks = good basis for solid returns in the long run.
"Trading" in more aggressive funds or cyclial stocks= increase your returns quicker.
P.S. Some part of your fund money should be in either a real estate fund...or a REIT ( in the income/commercial area)

Answer 6

Gasoline

Answer 7

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Answer 8

ETFs (If you have less than $2,000.00 USD)
Mutual Funds (If you have less than 25,000.00 USD)
Stocks (If you have less than $1,000,000.00 USD)

Answer 9

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