I am cashing in my stock option and getting about $100K(net). How should I invest it at respectable growth?

Question

I am male, 53, 3 kids still in high school.wife stays home.. have good 401k program

Answer 1

Any respectable financial advisor can get you respectable growth - depending on what you consider respectable. At your age, you shouldn't have more than 60% of your portfolio in stock, so your returns will be limited. But, if that money is just "extra" money, then you can afford to be more aggressive. If you want to invest it yourself, one of the best fund I have found is Dodge and Cox. They have four funds, two of which are closed to new investors. They have returned between 12-16 percent historically and their management fees are relatively low. Check them out on Morningstar and you'll see what I mean. Good luck!

Answer 2

I would recommend finding a solid investment property for rental purposes. I know little to nothing about the area you live in, but 100k is a good down payment anywhere. The basic equation is:

mortgage(known) + maintenance (estimate) + monthly bills (estimate) < rental income

If you and your wife are solid financially this makes even more sense. You can immediately start generating more cash each month to do with as you please. Sock away enough to repair the roof and furnace and boom, you're an investor.

If you "don't want to fix toilets" hire a property manager. We generally pay ours 6% of the gross rent and speak with them once or twice a year. If all goes well your real estate investment portfolio will make the college payments for the kids much, much easier.

Barring that, hand it over to a financial adviser and pray.

Answer 3

This is a difficult one to answer and you are in a better position to answer it yourself.

What you need to be very clear is how much risk you are willing to accept. Generally speaking, lower the risks, lower the returns.

If you are happy with something that pays about 13.2% Returns per year (about 13,200$ per 100k), I would be happy to assist you. The investment is Capital guaranteed, ( so no loss of capital). Also its legitimate and registered, so this is no ponzi scheme. However, its not a short term investment.

If higher risk with higher rewards interest you, there are other options.

You can contact me off line here or at [e-mail] .

Regards

Answer 4

I have just started working with Loral Langemeier and her wealth building program is terrific. You can find her at: liveoutloud.com