jump to last post 1-14 of 14 discussions (21 posts)

How would you invest $xx,000?

  1. alexd181 profile image60
    alexd181posted 8 years ago

    I'm looking for some advice from anyone who has done investing or personal finance planning before. If you had a 5-figure sum of money and wanted to grow that amount into more what would be the best way to utilize it? Investments seem very risky, especially for someone who knows little about the investing process.

    Apart from starting a small business, are there any effective and moderately low-risk ways of using an existing some of money to make more?

    Also, as a hypothetical, if the amount was xxx,000, would that influence your decision of what you would do with it? Or does amount have no difference, proving the whole 'you need money to make money' cliche false?

    1. Quilligrapher profile image91
      Quilligrapherposted 7 years agoin reply to this

      I always give my friends and associates the same investment advice. "Based upon my experience, the best way to make money investing is for you to watch what I do and then you do the opposite."

      If I had that sum to invest, I don't think I would look to Hubpages for advice. Although there are many here that are truly qualified to council me, there is no way for me to sort the good advice from the bad.

      Instead, I would go online to Fidelity.com or an analyst like Morningstar.com.  The investment firms all have very good, and free, wizards to guide you in making sound investment choices.  They will assist you to develop a balanced portfolio of stocks, bonds, and cash that will serve your own particular investment objectives. None of this is rocket science, but it does require your time and attention.  Always obey the golden rule and DO NOT put all your eggs in one basket.  Do not invest it all in one stock, or one fund. 

      I sincerely hope that this helps.


    2. OregonWino profile image74
      OregonWinoposted 7 years agoin reply to this

      Yeah, I would say precious metals, but the actual physical gold and silver.

  2. profile image0
    ryankettposted 8 years ago

    How many $$$$$ are we talking about? $10000 is a lot different from $99999. It does make a significant difference, particularly to an American. If you can invest in property, in the right place, with a large amount of immediate equity (say 50%+)..... then I would go down the bricks and mortar route to be honest. Something physical rather than digital.

  3. Pearldiver profile image86
    Pearldiverposted 8 years ago

    Are you looking to design a low risk portfolio? 

    If so, you understand that there are 50 questions that need to be asked of you. Eg: term.. purposes... income devitives.. preferences.. mix of assets.. management.. onshore/offshore exposure.. taxation etc. etc.

    This is a professional exercise... you should consult a few professionals in your preferred investment areas.

    One tip though.... having low risk tolerance reduces your ability to gain returns above CPI rates.  Allocate a % over low - medium And try a small % speculative (higher risk). The overall return rate depends on this along with your chosen asset classes/taxation etc.

    Realisticly there are some huge opportunities in this current environment. But you MUST Plan effectively.

  4. Uzdawi profile image33
    Uzdawiposted 8 years ago

    I personally invested 100$ to my project 2 months ago and now sold "the project´s" for 304.8 $

    1. Pearldiver profile image86
      Pearldiverposted 8 years agoin reply to this

      Are You Fishing for a pat on the back bite? yikes

    2. profile image0
      ryankettposted 8 years agoin reply to this

      And what exactly is $204.80 going to buy you? It sure aint going to buy you a Porsche or a house with a swimming pool. When you have turned that $304.80 into $1,000,000, Pearldiver still isn't going to congratulate you. Successful people dont shout about their financial details, so first lesson in becoming a millionaire..... dont tell people that you are nearly a millionaire. In your case, thousandair. I have a very good friend who lives in Talinn, and I'm sure that he will tell me that $204.80 is not a lot of money their either.

  5. J. McCoy profile image59
    J. McCoyposted 7 years ago

    There are many important questions to ask. Basically, they can be boiled down to:

    -What are you going to use the investment for? (there are special investments for retirement and education)
    -When will you need to use the money from your investment? (mutual funds can be very profitable in a 10-year period. But, they usually will barely break even after 5 years)
    -What level of risk are you comfortable with?

    I'd also like to share a different perspective on risk. Please consider that fact low-risk usually equates with low-returns. If you don't need/expect your investment to grow much or you only want to invest for a very short time, that might be the best option for you. However, if your investments don't have a high enough return, you are running a 100% risk of failing to reach your investment goals/needs.

    Finally, please keep in mind that inflation has averaged between 3-4%. If your investment is returning less than 4%, there's a good chance that when you decide to use it, it will buy you less than it does today. Capitol gains taxes can apply to many investments and will generally take about 15-25% of your investment's profit or interest rate. In conclusion, your investment needs to return an average of 5-6% per year to make an actual profit.

    I hope this helps.

  6. TimTurner profile image72
    TimTurnerposted 7 years ago

    Stocks!  If you don't know anything about them, just invest in a sound company like Coca Cola or Wal-Mart.

    Stocks have already doubled in less than a year and will probably triple in the next 2 years.

    1. ForexCashBack profile image48
      ForexCashBackposted 7 years agoin reply to this

      I think that the performance of stocks in the last 9 months is a once in a lifetime event. I highly doubt stocks will triple in the next two years, especially since this recession is not over yet. I also think stocks are overvalued right now.

      1. J. McCoy profile image59
        J. McCoyposted 7 years agoin reply to this

        Tim, I can agree with you if you meant that they would triple overall. That would mean that they have about another 50% gain from where they are right now. Otherwise, I would have to agree with ForexCashBack that this was a once in a lifetime event (assuming the 'double dip' doesn't happen).

        Forex, that's a great ROI! I was doing that back in March through May with financial stocks. But, I've been stuck at about 5% per month since then. Congrats! If you can keep that up, you'll be set in just a few years.

  7. profile image0
    A Texanposted 7 years ago

    I bought a private amount of shares in AIG at 1.70 sold at 40 and some change.

    1. J. McCoy profile image59
      J. McCoyposted 7 years agoin reply to this

      Sounds good except that AIG had a 20/1 reverse stock split making that $40 stock worth $2 making your profit at about $.30/share. Nice try, though. It was hard to go wrong with their stock in Jan & Feb. But, they're losing much of their key management and the ability to attract more quality leadership considering that the current president is currently reducing their overall compensation by 50%. What good people are left will leave soon.

      If you want to buy a financial stock, Bank of America (BAC) and Goldman Sachs (GS) are MUCH better bets.

  8. profile image59
    C.J. Wrightposted 7 years ago

    Anything tangible. Precious metals(in hand) Land/real-estate.

  9. Misha profile image77
    Mishaposted 7 years ago

    Nah, i would keep them in $$ for the time being. In fact I do. smile

  10. hudsonj1994 profile image60
    hudsonj1994posted 7 years ago

    You can invest in website domains.

  11. ForexCashBack profile image48
    ForexCashBackposted 7 years ago

    Personally, I would put it in a forex managed account. I've been able to achieve a 50%-100% ROI per month. Total ROI since inception is +258%. My $5,000 deposit back on 09/18/09 now stands over $20,000! Performance fee is 15% and only charged if the account balance is higher then the preceding month. No commissions, no annual fees. If interested, please contact me for more information.

  12. Midasfx profile image56
    Midasfxposted 7 years ago

    I generally dont think most of the answers here are wrong. But its simply diversification that will get you to where you need to be. If your young, invest more in higher risk investments.

    If I had a good sum of money...

    1. I would invest mostly in a managed forex account (nothing automated) B

    Bigger risk but much better returns then almsot anything else.

    2. I would do a joint venture on some real estate with good equity. There are plenty of good places to buy cheap houses right now, even pre-foreclosure homes ( just network with a loan mod shop)you can get a place with instant equity. And immediatly create a monthly cash flow if you do it right.

    Something Tangible, and create a monthly stream of residual income for you with little worry or effort.  You can also partner up with experienced investors to solidify and lessen the risk of your investment.

    3. I would also purchase income stocks/mutual funds with monthly, quarterly or bi-annually paying dividends.  Stocks like KMP and EVEP have done well and have a good paying dividend.

    Classic way of building wealth over time. . . If you got it.

    I would consult a financial adviser for good ideas. When I come into a decent amount of cash my adviser has some good ideas and can network to other investors to create better opportunities. Try out Edward Jones, they have been pretty good to me. Good Luck!

  13. profile image52
    propinvestorposted 7 years ago

    As we all look for new investment opportunities I have found a new resource for Distressed debit investing through buying pre-foreclosure notes through auction.   Has anyone been engaged in this activity.   Check out RealtyNoteBid.com and let me know your thoughts…has anyone used them.   Do you have any other resources.....

  14. efeguy profile image59
    efeguyposted 7 years ago

    depends on the amount you have.

    for me if you have good amount of dollars,then i advice you trade forex,but be very discipline cause that is the secret of a good trader.

    you can go to my hub page and see some forex tips.

    all the best.