I have some extra money that I'm looking to invest. I already have some money in the stock market and i'm looking to diversify my assets elsewhere. I have about $30k to invest. I dont want to put it in savings because I want to be more risky (hence more reward potential) with it. $30k isnt enough to put into real estate or into a business with a storefront. I work from 9-5ish and dont plan to quit my job. Any ideas?
2007-06-19 09:37:42 · 8 answers · asked by Shawn A 2 in Business & Finance ➔ Investing
I'm looking for more risk than a savings account (that includes an ING account). Also, reccommending stocks or mutual funds defeats the purpose of diversifying out of the equity markets. Thanks for your input though.
2007-06-19 11:03:17 · update #1
Well, there are quite a few options available, depending on just how risky you want to be. Here are a few things you might want to research:
One way to get into real estate without having to buy and manage your own properties is to invest in Real Estate Investment Trusts (REITs). A REIT is a corporation that invests in real estate, and it is required to distribute 90% of their income to investors. There are many different kinds of REITs to choose from, and you purchase shares just as you would any normal stock.
Another option you might want to consider is investing your money in unsecured personal loans through Prosper.com. I personally haven't done this yet, but I've read good things about it in some major magazines and newspapers. You need to do your homework and practice risk management, but some people are reporting returns of 15% or more.
One VERY high risk possibility includes options trading (either on stock or commodities). If you consider doing this, be EXTREMELY careful about which strategies you choose... you can make some spectacular returns but some strategies (e.g., selling naked calls or puts) can leave you open to virtually UNLIMITED losses. (No, I wouldn't recommend this, but its up to how much risk you're wanting to take on.)
2007-06-19 12:23:54 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Sure, you can make money on volatility...but the market is too unpredictable these days!?! Even gold has gone down drastically...as did Crude Oil...and the Dow had another unexpected and record breaking plunge!! The thing is, the market is completely dependent on political and economic reports which keep giving out negative news and hitting the market trends and moods hard and bad.... For the long term, its also a perfect opportune time to buy stocks into solid companies that will undoubtedly rebound big time post-crisis; but even the surest financial institutions are unsafe right now... For the short term...you're better off keeping your money under your mattress ;p
2016-04-01 06:02:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Don't know how much you already have in the market... Putting maybe 30% of your savings into gold and silver might be wise these days... and moderately to extremely profitable depending on what happens with the economy.
No... You don't put all your money in the stock market... That's insane... Early summer... traditionally a bad time to enter anyway. Sell in May and go away...
He said no stocks!!!
No... You don't invest in real estate while it's slumping...
Art and stamps might keep you warm if you burn them during hard times. He has good times covered with money in the market. He wants to diversify...
No... You don't get 4.5% on an online savings account when you could get over 5% on a short-term bank cd now...
Unsecured loans???!!!
Freaking morons who obviously know absolutely nothing giving "advice" and giving mine a "thumbs down"... The economy looks shaky as heck... Why do you think they want to pump it up even at the cost of commiting high treason and allowing a foreign invasion of the USA??? Bush is still lobbying for the treasonous amnesty bill and says it will pass. If a recession starts... it's going to be a good one. All stocks will drop. All real estate will drop... The dollar's been plunging for awhile already. Do you want ALL your money there? Precious metals would skyrocket. There will probably be more gains even if the economy holds on for awhile.
If you like some risk... How about buying some foreign currency? Don't know which I'd suggest right now. The dollar keeps falling though...
2007-06-19 09:41:52 · answer #3 · answered by Anonymous · 0⤊ 2⤋
ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% - 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read.
2007-06-20 00:11:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Look into mutual funds. T. Rowe Price has some good ones like Mid Cap Value, Capital Appreciation and Spectrum Growth.
2007-06-19 09:46:52 · answer #5 · answered by Stareyes 5 · 0⤊ 2⤋
5-10 individual company stocks is all you need for diversification, according to Warren Buffett, the 3rd richest man in the world and greatest value investor of all time. Invest it in the stock market.
2007-06-19 09:44:00 · answer #6 · answered by zander1331 3 · 0⤊ 1⤋
I say put it in ING Direct and let it sit...they have the highest APR rate around.....call and ask them about the orange savings account.....trust me, it would be a very wise move.
2007-06-19 10:29:13 · answer #7 · answered by Ben S 1 · 0⤊ 1⤋
In art, coins and stamps. ~
Actually $30K may be enough to get a rental property. To really make money go for one of the rattier ones. The rental HAS to pay for your monthlies!
2007-06-19 09:45:33 · answer #8 · answered by Anonymous · 0⤊ 3⤋