50K to invest......
 

Unfortunately my brother, and not I, has 50k in cash he's looking to invest but doesn't know where to start.

He said he's looking for investments around 2-5 years and wanted some good recommendations. FWIW He's single and just turned 30 years old and said he welcomes "moderate risk". Other than that this is basically a broad/general question.

So I suppose my question is, how would you invest 50k?
Thanks in advance for any suggestions/recommendations.

Tito

Re: 50K to invest......
 

I have the same dilemna. I am taking out a prosper loan for 25k and am putting the other 25k on margin. Any good investment advice is appreciate. TY.

Re: 50K to invest......
 

well most posters here would advise you to put the money in either index funds or mutual funds. Clearly investing on your own is better left up to the professionals or for those who can dedicate a few hours a day to keep up on the markets.

Re: 50K to invest......
 

Personally, as I have recommended my personal friends with similar dillemas, is to put half in a high yielding savings account(5.25%+) and the remaining 25,000 in the stock market dividing your portfolio into four stocks with at least one of them paying a 2.5% dividend and ALL FOUR BEING IN DIFFERENT SECTORS of the market.

So for example...........

SAVINGS--25,000 at 5.30%

STOCKS--25,000

1. OIL($6250)
2. RETAIL($6250)
3. FINANCIAL$6250)
4. DRUG($6250)

Preferably all quality stocks with at least one paying a dividend of 2.5%. Chances are that all your stocks will pay some type of dividend, but make sure one pays at least 2.5%.

There are many ways to play the market. I personally believe this is a much better way to play the market at this time than fiddling with any type of index fund.

Good luck,
-FH-

Re: 50K to invest......
 

private placements, go for broke.

Re: 50K to invest......
 

With 2-5 years time frame I'd just put most or all of it in a vanguard intermediate term muni bond fund.

Re: 50K to invest......
 

Put it all on some IPO. Go for broke!!!

Just kidding.

I've got 35k in non-retirement sitting in FNBO making 6%. I may be purchasing a home in a couple years, so my friends suggested I not invest in mutual funds. They've suggested you should buy mutual funds if you plan on holding them for ~5+ years, due to short-term volatility.

I'm not sold either way, but while I wait it's all sitting in FNBO. I don't know why I can't risk 1/4 of that in 2-3 year mutual funds? And keep the other 3/4 in guaranteed returns? If my mutual funds are negative after 2 to 3 years I'd likely not panic and sell them, but I'd put less downpayment on a home, and hold them longer.

Re: 50K to invest......
 

For GAWD sakes, forget mutual funds!!

Make your own mutual fund by picking 4-5 stocks ON YOUR OWN and when doing so, do not choose more than one from any particular sector.

Re: 50K to invest......
 

[ QUOTE ]
For GAWD sakes, forget mutual funds!!

Make your own mutual fund by picking 4-5 stocks ON YOUR OWN and when doing so, do not choose more than one from any particular sector.

[/ QUOTE ]

Your advice is awful for the vast majority of investors. Individual stocks have diversifiable company risk.

Re: 50K to invest......
 

Pick 4-5 strong companies.......way better than a mutual fund. Plus, one has satisfaction in doing their own work and they do not feel like a puppet.

Re: 50K to invest......
 

[ QUOTE ]
well most posters here would advise you to put the money in either index funds or mutual funds. Clearly investing on your own is better left up to the professionals or for those who can dedicate a few hours a day to keep up on the markets.

[/ QUOTE ]

good advice

Re: 50K to invest......
 

[ QUOTE ]
Pick 4-5 strong companies.......way better than a mutual fund. Plus, one has satisfaction in doing their own work and they do not feel like a puppet.

[/ QUOTE ]

Define "strong". how does one find these strong companies. Does OP have the knowledge, skill set, and time to research and find these investments. If so, sure that could be decent advice. If not, he probably should just go with the safer investment with and index fund.

Re: 50K to invest......
 

Can we ban this jerk yet or what? I've seen like 8 of your posts and I hate you. For reference it took like 10 of EricW's, and 12 of BrandiRose.

I hate you.

Re: 50K to invest......
 

If he might just hold it for two years, stocks may be volatile than what he's looking for. A high-yield savings account, money market account, or CD can give decent returns with no risk.

If he's comfortable taking risk, though, I would echo the recommendation of index funds.

For your own financial safety, ignore Fishead24.

Re: 50K to invest......
 

I'm in a similar position as the OP but my time frame is different. I want to know how I should invest about 80k with moderate risk for the long haul. I have about 25k that I plan to keep in a 5.25% savings acct but would like to put that other 80 in something like 4 (3? 5?) different mutual funds. I remember from a similar thread JeffW suggested VDMIX, VEIEX, VIVAX and VISVX. 20k in each? Anyone have any other ideas?

Re: 50K to invest......
 

My philosophy is, if you don't know what to do with your money, park it into something extremely safe for now, and start investing in your financial education.

I cringe at the idea of not understanding anything about investing and giving it to other people to invest it for me.

Re: 50K to invest......
 

[ QUOTE ]
I remember from a similar thread JeffW suggested VDMIX, VEIEX, VIVAX and VISVX.

[/ QUOTE ]

I never recommended that allocation. It is reasonable(I don't reinvent people's AAs if they look reasonable), but I don't like VDMIX because it's tax inefficient and VEIEX should only be held in ETF form because the mutual fund share class has a purchase fee. I'm pretty sure I explained that in the thread.

Re: 50K to invest......
 

[ QUOTE ]
[ QUOTE ]
I remember from a similar thread JeffW suggested VDMIX, VEIEX, VIVAX and VISVX.

[/ QUOTE ]

I never recommended that allocation. It is reasonable(I don't reinvent people's AAs if they look reasonable), but I don't like VDMIX because it's tax inefficient and VEIEX should only be held in ETF form because the mutual fund share class has a purchase fee. I'm pretty sure I explained that in the thread.

[/ QUOTE ]

I don't know much about these funds. Why is VDMIX tax inefficient and what is the purchase fee of VEIEX and how would I hold it in ETF form?

If you had to allocate my funds given my stance on risk, how would you?

Re: 50K to invest......
 

[ QUOTE ]
Can we ban this jerk yet or what? I've seen like 8 of your posts and I hate you. For reference it took like 10 of EricW's, and 12 of BrandiRose.

I hate you.

[/ QUOTE ]

There is no need for this. I dont understand what the point in hating him is, just ignore him and move on.

I am also more interested in opinions on the stockmarket currently. I wish I could learn a simple and effective way to invest, cuz I am completely lost.

Re: 50K to invest......
 

Well i'd put it in an index fund unless you have the time to dedicate to understanding the stock market and what makes a good company to invest in.. If your willing to dedicated several hours a day every day doing this (I have no problem doing this, because I love studying investing), then defintely invest in individual stocks.

Re: 50K to invest......
 

There is a huge difference between someone who should be ignored, and banned. The guy has been spamming Iowa farmland, then rips on people who aren't independent enough to purchase single stocks, which is absurd.

Anyway, this forum is too good to regress to banishment flaming. I've said my peace.

The "simple" way to invest is as others have stated: purchase index funds with low expense ratios. This is the opposite approach to "beating the market" <--- which some people think is a long-term myth anyway, so it isn't very exciting, but it's perfect for people who don't have the time, energy, or understanding to attempt to "beat the market."

Re: 50K to invest......
 

I would recommend staking Water Boat (he plays on FT). [img]/images/graemlins/wink.gif[/img]
Jocking aside, I would prolly put 50% in Stock Market, and 50% in real estate.

BTW, I am a total novice, so use my info as ideas, not as rules.

I would put the 25k into several stocks/mutual funds and bonds. It would really depend on preference. I would likely invest in foreign funds, as well as alternative energy, as I think it will help balance out the portfolio (I am scared of putting so much into US stocks due to record highs, the alternative energy is just speculation that it will become a big think 5 years down the road). I would maybe put 2k into bonds. Furthermore to lower variance, your bro should be consistently putting money into his funds (on a monthly, or bi monthly basis) regardless of which way the market is moving. Even if it is as little as 50$ or 100$

The other 25k would likely go for a down payment (plus repair/maintenance) on a (or several) house/2plex/whatever that I am certain will yield positive cash flow if rented.

The reason I like RE, is my dad does well w/ it. He has invested it out of state, due to the unfavorable situation in Cali ATM. I feel if you spend time to learn, you can do very well. I mean, 30 or 15 years from now, you can own 3 or 5 (or 20) houses/properties that you can use for Equity lines or for rental income (or for your kids).

With property, the main thing is to be making money off of it, so if you put 10k down and are making 1k a year from rent, you are making roughly 10% on your money. OBV troubles and hassles may arise; much more than if you chuck the money in an index fund.

Also, try to take advantage of 401k and IRA programs, to minimize the tax.

Lastly, I would suggest doing some serious reading/research. There are many great magazines, books, and websites, with info. Consume it all, and begin to formulate your opinions (not all the info is always correct/up to date/ right for your goal).

GL