2007-03-10 01:08:44 · 11 answers · asked by catfish 4 in Business & Finance ➔ Investing
So far, the answers here give hints but no definite answers to your question.
If you want to try real estate, be aware there is a slump going on in areas that have seen unrealistic price escallation.
I favor real estate, but I would use extreme caution now and only go into locations that are modestly priced with good accomodations going for them. Again, caution is the word.
So, dividing that pie up (sixty G's), I would put the least amount down on a house, maybe just ten G's and mortgage out the rest. (Providing of course you can carry a mortgage based on income).
I'd put more than half in safe secure bonds or bank C.D. which aren't going to earn you more than 5% interest.
The rest, slowly place small increments into a good stock fund that isn't full of hidden fees...do some research and ask around. Remember, if you are employed, your employer may have a good retirement fund which is better than investing on your own with a mutual fund.
I believe I've split this up correctly for you, and bear in mind, should the real estate investment be in a good area with solid growth, it may outperform the others over an extended period of time.
One more thing, make sure you keep some around in case of emergencies, say two or three G's. An interest earning checking account should be useful. Good Luck!
2007-03-10 01:46:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can make 5 percent a year with no risk at all depositing it into a money market account at EmigrantDirect.com. You could buy CD's, but your money won't be available until the CD matures. I also agree with the real estate idea mentioned by other posters, although you'll have to spend most of the $60K. Also, depending on where you live, you might have a hard time finding housing in that price range. If it were me, I'd finish remodeling the house I currently live in, and sell it. Then I'd move on to a bigger house and flip that one, and so on. Of course, I live in South Carolina, where you can find a small "fixer-upper" for $20K. Really depends on your location.
2007-03-10 09:20:41 · answer #2 · answered by josh m 4 · 0⤊ 0⤋
It really depends what you consider to be a "good return", and how quickly you want that return.
CD's are basically risk free, and depending how long you are willing to tie up your money, can get you north of 5%. Remember, though, there is a penalty for early withdrawal.
Even better, the new "e-savings" accounts you'll see can get you between 5-6%, and your money remains liquid. Citibank, HSBC, and ING are leaders here...you can visit their websites for information.
There are also bonds (T-bills, savings bonds) that are completely risk free, and depending on which you buy, may have tax advantages as well, on the interest you earn.
You may be able to earn more with stocks, but with that amount of money, I wouldn't recommend going it alone. Hire a qualified professional (Smith Barney, Morgan Stanley, etc) to invest, but remember, stocks are volatile and you may lose money. There are certainly more risky and less risky ways to go with stocks, but you never know. You also have very different tax implications with stocks, so be aware.
2007-03-10 09:19:27 · answer #3 · answered by Jason 3 · 2⤊ 0⤋
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2007-03-10 14:13:03 · answer #4 · answered by Asuncion 2 · 0⤊ 0⤋
Get a Buy-to-Let Mortgage!
Real Estate has the Most Advantageous returns of any investment!
2007-03-10 09:11:17 · answer #5 · answered by J. Charles 6 · 0⤊ 2⤋
I used mine to start a homebuilding business. It has been tremendous so far. You may wish to do something like this or partner with a like business. This business has a medium risk. See www.angelfire.com/tx/bpo.
Good Luck.
2007-03-10 10:43:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Depends on your time horizon. Short term = bank (www.bankrate.com) CD's. Long term = low cost, no load widely diversified mutual funds.
2007-03-10 09:15:28 · answer #7 · answered by gosh137 6 · 1⤊ 0⤋
Stocks with the help of a Portfolio Manager like myself.
2007-03-10 13:08:13 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Buying a small store.
2007-03-10 09:11:05 · answer #9 · answered by Anonymous · 0⤊ 2⤋
buy a house
2007-03-10 09:22:22 · answer #10 · answered by al b 5 · 0⤊ 1⤋