What's the best way to invest 25K?

Answer 1

That will be different for different people in different situations. A big key question is how long will it be until you need to use that money for something. If you're investing for something long-term (e.g. retirement many years from now or a college fund for an infant or toddler), I personally think stocks are the best investment option. Over long periods of time, they've historically done better than other investment classes. A mutual fund that invests in small company stocks would be my choice.

On the other hand, if you need that money in a year or two, stocks are probably not the right choice since in any given year they can go up or down. For short term money, a CD or money market fund might be the best choice. The returns aren't nearly as high on those as they would be on a stock fund held for a long time, but you can be confident they won't go down in value.

Answer 2

I HAVE SAID TO MY WIFE, MY FRIENDS, AND ANYONE THAT WILL LISTEN TO ME: All money is not the same.

If you are broke and have $100 to your name, you will do something with $1.00 that you would not do if you only had $10.00 to your name.

The same thing applies to $100,000 - You will do to $1,000 something that you would not do is you only had $10,000. Therefore, if you have $25K to invest you need to invest as if you have $2,500. Once you have completed that, invest as if you have $5,000. Then $10,000 - you will have $8,000 Left to invest however you wish.

This is the best approach, when things fall apart - it is the small investments that keep your life livable. If you loose $10,000,000 - you will still survive if the $25,000 that makes 100% return a year continues to do what it does.

AN INVESTMENT IS THE SPENDING OF ASSETS TODAY FOR A RETURN IN THE FUTURE. A purchase of a home is an investment. A purchase of a car is not an investment, unless the operation of the car puts money in the bank. An investment does not have to return more than its cost, but it has to return REAL MONEY. Book profit does not count.

If you buy vending machines, and have someone else manage them. You can split the estimated income 50/50 with the operator. (assume that the products will sell out 100% per month) The profit is 50% yours. If the location is good and the machine sells out 2 - 3 times a month, the operator keeps all the additional money. Although this sounds like you are loosing money, the truth is you are making more than you can handle.

If you buy FORECLOSURE homes, you can sell them for 20% - 50% return on your funds. You buy a home for $20,000 and sell it for $30,000. You make $10,000 in 2 Months - you could become rich before you figure out how to do this right.

SORRY, I CAN DO THESE THINGS NOW - I JUST NEED THE MONEY.

Answer 3

Well, to answer that question, a financial planner would first ask you what are you saving the money for? Or, what goal do you have in mind? Because, depending on the answers to those questions, the answer to the $25K question can change drastically.
But, basically, if you need to invest short term (you need the money to spend on something in the next 5 to 6 years) you want to stay on the low-risk side...bonds, money market, CDs.
If your time horizon is much longer (like retirement) you may be much better off in the stock market. I would start by investing in Exchange Traded Funds or in Mutual Funds that track the S&P 500. Money Magazine or Kiplinger's Finance Magazine are great sources for basic investing information like this.

Answer 4

It's not the 25K that is important...it's: What are u looking at for returns? Returns to pay ur monthly phone/water bills? Returns to make passive income for u monthly? Returns which u do not require now but would re-invest and make more and through compounding? Returns that u need to retire in peace when u reach the age?.... Your goal is the only one that would define what u can do with the 25K.

Ur 25K is the arrow.
Ur goal is the target.
Now u need to know what kind of bow to use to hit the target with ur bow. Know ur goal and u can then select the right bow for ur arrow : )

Just make sure your goal (target) is within reasonable distance from where u are (arrow). Or else, no bow can take u there. : )


Rgds
Kaz (Singapore)
[e-mail]

Answer 5

Buy stocks with the help of a Portfolio Manager like myself.

Answer 6

Well you could just put it in the bank..and let interest collect in there for awhile. It may take awhile but is worth it in the long run.

Answer 7

property. land or a house