50K to invest......

[Tito Jackson]

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

[Shoe]

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.

[ahnuld]

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.

[Fishhead24]

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-

[AggroFish]

private placements, go for broke.

[Jeff W]

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

[prohornblower]

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.

[Fishhead24]

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.

[Jeff W]

[ 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.

[Fishhead24]

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.