I am looking to invest 30,000. I am 40 ish and will not need the money till retirement so I am looking for a SAFE investment...maybe an Annuity?? I already have IRA's. Any suggestions??
2007-10-05 23:04:51 · 6 answers · asked by Alan D 1 in Business & Finance ➔ Investing
With your time frame, I would recommend a broad market mutual fund. There is obviously more risk than in CDs or bonds. But over the 20 plus years of your investment, I think the market risk is less than the very real risk of inflation. The mutual funds also provide reasonable growth prospects. Significantly more than a CD or bond.
Take a look at Vanguard. Two that I would suggest are VTSMX and VGTSX. VTSMX is a total US stock market index fund. VGTSX is an international fund. You will have the whole world covered with those two.
2007-10-06 00:24:03 · answer #1 · answered by Mystery 6 · 1⤊ 0⤋
Alan,
You are right on the money with an annuity! Tax deferral is a wonderful thing and thats exactly what you get with an annuity.
I would, however, take it one step further and examine Variable Annuities.
A Variable Annuity is also tax deferred and designed for retirement but offers you the opportunity to select various mutual funds inside the annuity.
You have a very long time frame if you are seeking retirement after 60 or so, making mutual funds a more than appropriate choice for you.
If you are risk adverse there are even Variable Annuities that offer Guarantees.
These guarantees protect the death benefit to your beneficiaries. Others offer a fixed retirement income to you even if the stock market makes all your money disappear.
2007-10-06 02:08:28 · answer #2 · answered by Richard Jackel 3 · 0⤊ 0⤋
If you are in the US, the safest investments are CD's. Both the principal and income are guaranteed.
With fixed annuities, the real interest rate is about 4%.
Since you have about 25 years to go, I suggest investing in a mutual fund that tracks the S & P 500. S & P are constantly updating their mix of stocks, so you will be owning the top large companies. You might get an annual return, over the long run, of about 10% per year.
2007-10-05 23:11:25 · answer #3 · answered by regerugged 7 · 0⤊ 0⤋
SAFEST us t-bILLS although the standard is mutual funds bonds or annuities, if you want the money to grow you will have to water it. I would say that options on stocks if following a strick bussiness plan will be the highest return and a known fix gamble. Put half in bonds or bills and check out chicago one best option traders I know.
Av
2007-10-06 11:49:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Compare rates free
2015-02-10 10:49:00 · answer #5 · answered by Lilia 1 · 0⤊ 0⤋
you should be in 80% in stocks, 20% in bonds
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2007-10-06 03:39:34 · answer #6 · answered by bizzbagg 4 · 0⤊ 0⤋