Another Investment Advice Thread

[myopicpaideia]

Hi all. I should be coming into around $30-50k in the next month or so and instead of buying an NSX, I am thinking I might invest it. The only thing is I have no clue about anything, but I want to earn about 10% a year and keep compounding it until it becomes real money, and maybe throw it a bone now and again to keep it growing.

I was think a mutual fund/money market mix but have no idea about the best way to go about it.

Are my goals realistic? I am willing to take moderate risk, but don't want to throw all my bones in one bucket, if you know what I mean...

I have read previous threads on this subject via the search, but am still kind of at a loss...

 

[Daedalus]

Yikes. I cringe at the thought of someone asking a public forum for advice on the best way to risk that kind of capital. Are you asking for hot tips or are you asking about resources for you to learn enough about both yourself and investing to be able to manage your own assets? No one can possibly give good, tailored advice on the info you've given. "Moderate risk" doesn't really mean anything, except that you're willing to put at least some of your cash in something other than government bonds. A financial advisor would likely give you a "Cosmo" quiz to quantify your level of risk propensity. And they would need to know for what length of time you'll be committing the funds. A goal of 10% might be realistic.

"Put your money in weed. The price of weed never go down." --Wanda Sykes

 

[gheba_nsx]

10% realistic? Depends on what you mean with moderate risk... but to have a sustained 10% yearly increase is a bit of a dream.

I would say that looking into the classical 4%-7%, depending on the year and the situation, would be a bit more appropriate.

 

[SilverStone05]

10% is very realistic. Just look at the historical performance of the S&P 500.
In addition, Fidelity, Vanguard and American Funds all have TONS of funds that have delivered 10-12-even 14% returns net of fees over the long term with average to less than average risk.

One I personally like is the Vice fund. VICEX. Higher fees than I'd normally like, but the returns justify.

As far as your investment advice, if you don't want to pay for it, and don't want to sit down with an advisor (which is the best thing to do) open up a Fidelity account, research the funds and buy some. Can't go wrong that way.

 

[gheba_nsx]

Not here

Sometime out of hundreds products (funds, structured, ...) there are a couple doing >15%/year sustained for 2-3 years but getting them is like winning the lottery since you do not know which one will ne the next good one...

 

[sahtt]

Devide it into 1/24's and put the money in a couple index funds you like in monthly increments. The S&P 500 is an example.

If the market does below average, put the next 2 months in the current month. If it does really terrible, put the next 4 months in that current month. It's a crude way of dollar cost averaging without taking the large risk of suffering from a quick correction in the markets that takes a 5 years to a decade to truly recover from.

That's what I'd advise someone who knows nothing to do. I do a similar strategy for my retirement funds.

I don't like mutual funds and you don't have near the knowledge to invest in anything like individual stocks at this point.