Any Financial Advice to Invest 100k?

RoninJin

RoninJin

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got a $100,000 in capital gain after selling my house. Looking for ways to make some money, safely.

- probably look for banks that offer the highest rates for certificate of deposit (CD) 12 months
- do a ladder CD and divide $20,000 into different plans like 1,2,3 years and wait for each to CD to mature then find another bank etc


Any more advice...
 
Are you willing to risk your principle, or do you want that protected?
 
Are you looking short or long?
 
RoninJin said:
What are pro and cons for both?
Click to expand...

Well, the potential returns for conventional investment vehicles (stocks, mutual funds etc) are much higher, but you risk losing your principle.

Give a long term investment horizon, it is often just best to buy index based mutual funds and call it a day. You can collect quarterly dividends (and reinvest), and for the most part, the stock markets trends up over time.

If you are really risk averse, your kind of limited in your options. For example, the composite rate on bonds is the neighborhood of 1.7%, which isn't exactly going to get anyone excited. However, you never have to worry about losing your money.

As a personal anecdote, I made the decision to actively invest in my early 20s until now, and I actually regret doing it. While I haven't lost money, the amount of time and stress I incurred wasn't worth the returns. If I could do it all again, I woulld split my money 2/3rd Indexed mutual Funds and 1/3rd Bonds - set it and forget it. I think would have actually yielded I higher return doing it that way too.
 
Why isn't it going into another house? Or is this leftover? Do you have any debt to be paid off?

CDs right now are pretty awful in terms of yield.

If not, then index and forget it if you don't want to mess with anything. If you're in the US take $5500 and put it in a Roth, and invest the remaining $94.5k into a mix of index funds, namely total US stock and total US bond, maybe 80/20 or 70/30. Then each year you can take another max amount and put it into a Roth, and let it grow tax free until 59.5 years of age.
 
Brampton_Boy said:
Well, the potential returns for conventional investment vehicles (stocks, mutual funds etc) are much higher, but you risk losing your principle.

Give a long term investment horizon, it is often just best to buy index based mutual funds and call it a day. You can collect quarterly dividends (and reinvest), and for the most part, the stock markets trends up over time.

If you are really risk averse, your kind of limited in your options. For example, the composite rate on bonds is the neighborhood of 1.7%, which isn't exactly going to get anyone excited. However, you never have to worry about losing your money.

As a personal anecdote, I made the decision to actively invest in my early 20s until now, and I actually regret doing it. While I haven't lost money, the amount of time and stress I incurred wasn't worth the returns. If I could do it all again, I woulld split my money 2/3rd Indexed mutual Funds and 1/3rd Bonds - set it and forget it. I think would have actually yielded I higher return doing it that way too.
Click to expand...
I would take your advice into consideration and Google some of those terms for better understanding. The market is so unstable nowadays w stock. My bro made some error in oil and lost close to 50k in one week.
 
MASShole said:
Why isn't it going into another house? Or is this leftover? Do you have any debt to be paid off?

CDs right now are pretty awful in terms of yield.

If not, then index and forget it if you don't want to mess with anything. If you're in the US take $5500 and put it in a Roth, and invest the remaining $94.5k into a mix of index funds, namely total US stock and total US bond, maybe 80/20 or 70/30. Then each year you can take another max amount and put it into a Roth, and let it grow tax free until 59.5 years of age.
Click to expand...
is the Roth fund the safest route to go? Little risk for lost?
 
Brampton_Boy said:
Well, the potential returns for conventional investment vehicles (stocks, mutual funds etc) are much higher, but you risk losing your principle.

Give a long term investment horizon, it is often just best to buy index based mutual funds and call it a day. You can collect quarterly dividends (and reinvest), and for the most part, the stock markets trends up over time.

If you are really risk averse, your kind of limited in your options. For example, the composite rate on bonds is the neighborhood of 1.7%, which isn't exactly going to get anyone excited. However, you never have to worry about losing your money.

As a personal anecdote, I made the decision to actively invest in my early 20s until now, and I actually regret doing it. While I haven't lost money, the amount of time and stress I incurred wasn't worth the returns. If I could do it all again, I woulld split my money 2/3rd Indexed mutual Funds and 1/3rd Bonds - set it and forget it. I think would have actually yielded I higher return doing it that way too.
Click to expand...

This kind of aligns with the advice given in The Intelligent Investor, the book Warren Buffet said taught him to invest. They say if you are constantly trading stocks something has likely gone terribly wrong. The idea is to invest in under valued stocks from industry leading companies with a long history and good earnings and then just leave it in. But just to point this out, I'm not an investor. I'm just reading the book and this is just my understanding. Also your ratio isn't off either. They said 50/50 isn't a bad ratio between stock and other forms of investment.
 
Dont listen to these charlatan investors.
You need to take 100% of your bankroll and invest in a pyramid scheme. You'll be a millionaire within weeks.
 
Give it to me so I can blow it on...blow and hookers.
 
RoninJin said:
I would take your advice into consideration and Google some of those terms for better understanding. The market is so unstable nowadays w stock. My bro made some error in oil and lost close to 50k in one week.
Click to expand...

Yeah, oil (and most commodities) is a wild ride.

Like your brother, at one point, I was down about 60k - Less than three weeks later, I was up 5k.

Chesapeake Energy and Encana were at $1.50 and $3.01 two fridays ago. Now they are both well above $5. Not for the faint of heart.
 
Brampton_Boy said:
Yeah, oil (and most commodities) is a wild ride.

Like your brother, at one point, I was down about 60k - Less than three weeks later, I was up 5k.

Chesapeake Energy and Encana were at $1.50 and $3.01 two fridays ago. Now they are both well above $5. Not for the faint of heart.
Click to expand...
The thing about oil is war. When we announced that we aren't putting boots on the ground in Syria, oil stock immediately took a dive. That week my brother looked like a caveman stressing from the money he lost.

2003-2010 was a great year for oil stock because of Iraq. Blackwater, contractors, military cilvian defense, everyone had a piece.
 
If I was u I'd just flip new cars. Porsche, Ferrari and those guys are making 200 limited production runs on certain vehicles and it's stupid. People are buying them for 150-250k and flipping them for half a mil all the time
 
Depends on where you live and what your actual goals are. This isn't something that gets answered in a single response on a forum, especially in the vacuum you presented it.
 
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