Where would you invest $500,000 today in the stock market?

Question

age 40

I'm already invested heavily, just like different ideas to study up on. TIA.

Answer 1

I think keeping it simple is the best strategy. I would use Total Stock Market, Total International and Total Bond Market index funds set to my asset allocation. The diversification offerred by these funds would allow me to relax and enjoy life while simply monitoring my portfolio. Also avoids expenses and taxes associated with actively trading.

Answer 2

I am not too sure what risk to reward you are willing to take with your money. I am going to assume it is moderate in which case I would suggest you read an article on Warren Buffet and his company Berkshire Harthaway at this site
http://articles.moneycentral.msn.com/Investing/JubaksJournal/WhyWarrenBuffettsAGeniusAgain.aspx
Also a great article is found at
http://en.wikipedia.org/wiki/Warren_Buffet

Lastly though your money is supose to be safe
I would suggest diversifying out of the stock market. Possibly try bonds as well but let it be a government bond as the risk is a lot less even if the reward is also less.

Last idea is with that amount of money you want to invest allows you to make an appointment to see a money manager.
A simple definition of this term is found at
http://www.investopedia.com/terms/m/moneymanager.asp

If you decide to go with a money manager, then I suggest with all the firms out there, you should see a table with comparisions at
http://www.managerreview.com/

The site above is a subscription based site that gives information on how successful the money manager firms have being. If paying this fee helps you avoid money managers taking a loss but still want to manage your money then the fee may be worth it.

Here is a sample of one money manager's site and what they claim to offer.
http://www.wrapmanager.com/

These options I have outlined are not open to just anyone so I think size does matter especially in the case of the amount of money you have to invest.

Whatever you go with, please I emphasize make sure you know the risk to reward ratio and have a portfolio planned out in a few different markets whether international or different investment instrument markets e.g. bonds, commodities, fx or even stocks.
Avoid hedge funds you will discover in a bad way not to go there unless you have an extensive knowledge on investment. The government hardly has any regulations on these funds and this has lead to a lot of corruption.
Do not get fooled by quick profits, if there is quick profits then there is a lot of risk even if the investment firm does not disclose it. It is just the rule.I hope this helps.

Answer 3

I would split it 5 ways and invest into ETFs mirroring the following indexes: S&P500 (SPY), NASDAQ 100 (QQQQ),
Emerging Markets (EEM), International Markets (EFA), and Russel 2000. Depending on your tollerance to risk, you may want to not split it evenly.
One thing, do not touch this portfolio more than once a year to rebalance. Do not jump on a trigger if market corrects or something like that. By the time you're 60 this portfolio will be worth millions.

Answer 4

I put up the top 25 results from the screen I run for "good companies at good prices", which is viewable at http://www.valuestockreports.com/030707.htm
You can also check out the free stock reports, all of which contain information on companies I think are significantly undervalued.
My allocation would probably include some combination of HW or SSL, ASPV, ARLP, BLDR, WTI, JNJ, AMGN, and UST. If you'd like to talk about any of these, I'm always looking for someone to share opinions with - my email is [e-mail]
Hope this helps.

Answer 5

If you look at economicinvest.com, you can get lots of great ideas regarding investment philosophy as well individual investments that are trading at a discount, which you can use to maximize returns. The costs are minimal compared to others, and the research is very sound.

Answer 6

I would put 500,000 in metals and energy. I think you could probably quadruple your money before 2012 when the markets will start tanking. Sell everything by 2012 and go into uncallable US gov't bonds and live off the income of about 100K per year.

At least, that's my plan.

Answer 7

Yes in water

Answer 8

ARE YOU FEELING OKAY??? DO YOU WANT TO LOSE IT ALL??? INVEST IN PROPERTY!