How to invest money for retirement?

If you received $75,000 in an unexpected inheritance, how would you invest it to receive max returns for retirement in 10 yrs?

Is everyone dying, cause this is the 3rd inheritance question I have read in the last 30 minuets.

I would really seek a professional with 10-15 years experience in the business for advice.

1. Traditional IRA? No. Small tax benefit now, but 100% of withdraws are taxed as ordinary income at future tax rates. Do you think taxes will be higher or lower in the future? Nuff said.

2. Instead, consider opening a ROTH IRA. Max out each year. Tax free withdraws on principle after 5 years and no income tax on gains after retirement 59 1/2. Get a no fee account such as with Fidelity.com

3. Dollar Cost Average in the S&P 500 Index (no load fund or stock symbol "SPY"). Reinvest ALL dividends in the S&P 500. This is key for making money long term in the index!

http://en.wikipedia.org/wiki/Dollar_cost_averaging
http://en.wikipedia.org/wiki/S&P_500

Avoid Gold. According to Chase Global Digest, Gold is the second worst performing investment class after diamonds.

If you bought gold 28 years ago, you are about ($100-150 gain -whoopie!!!) from where you bought it, technically at a loss, because inflation ate away buying power.

If you invested in the S&P 500 Index 28 years ago you would have multiplied your money many times over.

You need a 10+ year time frame when investing in broad market indexes.

Looking for short term safety?

US Treasury Bills and US Treasury Bonds.

Buy directly from US Government (no fees). Principle Guaranteed by US Government. Unlike a bank CD, there is No federal income tax on US Treasuries.

http://www.treasurydirect.gov/indiv/myaccount/myaccount_legacytd.htm

If you have other income, the best thing you could do if you could work it out is to buy a bank owned home that is selling 40-50% below current market.

1. You have a place to live.
2. In 10-15 years the property should have increased.
3. Tax deduction benefits.

This is a rare opportunity to buy distressed property. I wouldn't buy any home, only a distressed short sale or bank repo that is (again) 40-50% below current market. A good aggressive real estate agent can help negotiate.

I would prob put the money into US Treasuries for 30 days and do nothing. Then get sound advice.

Please just don't start aggressive investing, speculating, trading, getting into Forex, gold, buying coins, jewelry, buying a new car, or some other worthless or risky, or historically poor investment.

You have one chance to make a good sound decision. Do you want the money to last or blow it on what's hot now?

Good Luck!

If you are a novice at investing, consider seeking professional help. A good mix of mutual funds, those investing in US as well as foreign stocks and bonds would be a decent place to start.

If i receive $75k first thing i will invest it in unit trust for medium and long term since my retirement in 10 year that mean i have long time to keep my money growth, like 50% from the money i invest in equity fund that will give return in capital growth and income returned and balance 50% invest in balanced fund and money market that make risk low.

IÂ´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.

If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you become much richer than you are today.

My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:

We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.

Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.
Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.

For me "All stocks are equally worthlessâ€

I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.
I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.

Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coinâ€¦ ThatÂ´s why so many new traders (and investors) lose money.

Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.

The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.

But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their
online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.

It's easy to see why trading the open is the market's prime time for profiting from other online traders.
The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.

Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.

There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points
in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.

I trade only when I have an edge and that means "only the first hour the market is open".

If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.

I can carry on with the advises about how to make money trading, but if you ask me:

"What is the best thing you can do for me?

I will say:

Give yourself a BIG favor and go to this "Top Secret" site and learn how to get the BEST stocks that will make the largest and fastest day trading profits youÂ´ve ever seen, all by yourself...

www.onehourtrading.com

After you review this site you wonÂ´t need system, strategy, book, software or mentor to tell you what to do,
you will be able to profit HUGE every day.

Good luck and good trading,

John Fontaine

There is no one best investment. Diversify your investment funds into both fixed income investments (treasury bills, bank CDs, rental property) and for capital growth (stocks, managed forex trading, options/futures).

If you are risk averse, allocate 80-20 of your investible funds in favor of fixed income investments. If you can handle risk and want a higher return for your money, go for 50-50 allocation to both.

Hope this helps.
Jim http://jsforex.blogspot.com

Hey June,

If you don't want to be involved in what you're investing in, then picking mutual funds might be as good a plan as any.

But, if you want better-than-the-market returns, it would be worth learning a bit more about how to invest your money in the stock market directly.

However, I'm a big advocate of value investing in the stock market (finding great companies to invest in, buying them at the right prices, and then selling only when the company becomes overvalued...). These are tried and tested principles that investors like Warren Buffett have used to grow their investment to many times their original value, and as I've said, I'm a big advocate of this approach.

It's an approach that doesn't require you to sit in front of a computer screen for hours every day (like day trading...). Plus, you actually have some advantages if you buy your own stock directly as opposed to relying on a mutual fund manager to grow your investments for you.

If you're interested, I have some great books as starting points on value investing on my website...

Hope this helps, and good luck!

I put a large percentage of my retirement into a Gold IRA through Capital Gold Group. I had my whole IRA invested in dollar-based assets - mutual funds and the like - which weren't performing very well. But since your funds are outside of a retirement account, you could just convert some of that inheritance into actual gold and hold onto it until you need to liquidate. Gold will hold its value and most likely grow much better than any stock paid in dollars, because gold always has value and always will - you can't say that for stocks. Do some checking. . . gold's gone up about 35% in the last year - and it's gone up 20-25% or more every year since 2001. I read a bunch of articles that convinced me at www.safeasgold.com - click on "Gold Market News." Countries are hoarding gold and investment demand for gold is up like 300%. They don't say "safe as gold" for nothing.

well go to http://pissco.tk than go to investment column last year i invested 2000$ and i made made 50000$ from share and Saving ACcount that site will Give you complete tutrial about investment

I would diversify yourself in 3 or 4 mutual funds. I personally don't like mutual funds because of the fees, but if you are not very experienced in selecting stocks yourself that is probably the best bet. I would also make sure at least one if not 2 of the funds were over seas or at least invested in worldwide companies. Also stick with 5 star rated funds from Morningstar.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.014
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy