If you were given $10,000, how would you invest your money to get a substantial return?
2007-02-23 06:48:58 · 10 answers · asked by tysonez 1 in Business & Finance ➔ Investing
Put $4000 into a Roth IRA (if I qualify). Put the other $6000 into my online savings account, which earns 5% interest a year. Then invest $5000 next year and in 2009, put the final $1000 with the interests earned from my savings account into the Roth.
2007-02-23 06:53:57 · answer #1 · answered by Anonymous · 5⤊ 0⤋
With a substantial return comes added risk. Therefore my reccommendation would be 4 ETF's that could provide you with a better return than expected. I would make a portfolio that 50% in the States and 50% dipped in the growing econimies. For States coverage, i would use Vanguard Total Stock Market (VTI), already i'm diversified into Large cap, Mid cap and Small cap. i would put $5000 into that and $5000 divided equally ($1250) into China Fund (FXI), India Fund (IIF), Latin America (ILF), and lastly Russia (TRF). These economies are very violatile but investing in for the long term will make you a winner. Investing in this foreign funds also further diversifies me into different sectors so the risks are kind of limited. Going Global and tapping in Emerging Economies will look smart 10-20 years from now even though all the negative hype from other investors.
2007-02-23 07:26:29 · answer #2 · answered by momach21 2 · 0⤊ 0⤋
Q1 - what is my time horizon - Do I need this money in six months or six years?
Q2 - Would losing some money on this be disasterous?
Q3 - What does the rest of my portfolio look like?
The shorter term I have for the returns, the more conservative I would be. If losing money is very hard to bear, then it's bonds.
Finally my third question asks if we already have a lot of stocks, and maybe I want some tax-free income.
You haven't defined substantial. If you want 20%, good luck - everyone does. If you want 8%, annually, put it in the Vanguard Index 500 fund (I'm in it - full disclosure). That fund beats 80% of active fund managers.
2007-02-23 06:57:19 · answer #3 · answered by John T 6 · 0⤊ 0⤋
If you want substantial return in the short-term, pick a few (four or so) good, financially sound, low- or micro-cap stocks in different industries. You will need to be very active with this strategy, never hold on to a loser, and always be willing to take your profits and cash out of a winner. Be careful, though; the more often you trade, the more you pay in transaction fees.
If you are looking longer term (five years or more) stick with moderate to higher risk mutual funds. Hold on to them for a few years, and then reevaluate them individually, replacing the losers, and sticking with the winners. Your money will grow faster in an IRA, but if you want to get at the money before you're 59 1/2, you might not want to do that.
2007-02-23 07:13:02 · answer #4 · answered by Mario F 2 · 0⤊ 0⤋
Foreign Exchange and Stock Market
2007-02-23 07:04:12 · answer #5 · answered by thefuture0007 2 · 0⤊ 0⤋
Get your Real Estate Broker, or Mortgage Broker license. Then inundate wealthy neighborhoods with a weekly postcard program. After 2 months, go to monthly, so they don't get you fro harrassment. You will get some good business!!
2007-02-23 06:58:21 · answer #6 · answered by strunbike 2 · 0⤊ 0⤋
Probably a combination of stocks and mutual funds. It depends on what your goal for the money is.
2007-02-23 06:52:26 · answer #7 · answered by Faye H 6 · 0⤊ 0⤋
I'll tell you what I'd do, man. Two chicks at the same time.
2007-02-23 06:56:18 · answer #8 · answered by nick_g22 3 · 1⤊ 0⤋
start business , or go underground, that depends waht age you are, you got to be street smart, good luck ;)
2007-02-23 06:57:29 · answer #9 · answered by NaD 1 · 0⤊ 0⤋
Wisely.
2007-02-23 11:51:15 · answer #10 · answered by Anonymous · 0⤊ 2⤋