50K to invest......

[prohornblower]

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."

[john voight]

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