Best way to invest $30,000?

Question

I have about $30,000 and I was wondering what would be the lowest risk/highest return way to invest it?

Answer 1

I'm not real savy on this but one idea would be to invest it into a blue chip stock or two that pays high dividends. You can have the dividends reinvested back into the company(s) so that it buys more shares. These are called dividend reinvestment plans (DRIPs).  

Look it up. Dividend earnings are usually taxed very low, if at all. Much much lower then say, an income tax.

I won't bore you but incourage you to educate yourself. There are internet sites that are nothing but "DRIP" information.

Good luck.

Answer 2

With $30,000 you do not have enough to invest in stocks as you cannot buy a variety until you have at least double that amount.  You will find that low risk equals low return and high risk can yield the highest return or loss.

The safest option would be to buy a government or corporate bond.  This is lending your money to a corporation or a government at a fixed rate of interest.  If you choose a highly rated bond, it has the most safety.

If you are willing to accept some risk, your best bet is to invest in a basket of stocks, called a mutual fund.  Because mutual funds are made up of stocks, their value grows and declines.  There is also a charge, called an MER, which could be as high as 3 - 4%.  You can buy stocks and mutual funds by opening an internet account or you can go to a financial planner for advice on choosing the best funds for you.

There are differences between advisors.  For example, an investment representative is simply a clerk with minimal training who can buy whichever fund you want.  He will probably charge you an initial fee of up to 5%.  There are financial planners or brokers who may charge you a fee for assisting you with your choices.  He can advise you on your best choices because he is not being paid a commission by the mutual fund company.  There are also highly educated and trained advisors.   Visit several and find out what they recommend and then choose to deal with the one with the philosophy closest to your own.  You do not want to be fighting with them about the level of risk they are taking if it does not match your comfort level.  

If you want to invest in an online account, there are a number of ways of getting information on stocks before actually investing in them.  Try some of the 'paper money' accounts and play with the fun money.  If you lose, simply hit reset and you will be given more money to play with.  It will give you experience and will educate you in the basics

The fastest way to lose your money is to jump into the market because you have taken one course or bought one person's gimmick and now think you know something.

Answer 3

in meeeee

Answer 4

If you have that much to invest you had better go see an investment broker face to face so you can understand what is the best to invest in.  I don't think you would go to a clothing store for a steak>>>>>

Answer 5

Have you thought about municipal bonds? This is a way that your money can grow and in most cases won't be taxed at a federal or state level. On average a stock or fund would have to beat the Municipal bond by 3.5 to 4 % for the same result because of the taxes the stock or mutual funds have to pay. This might be a longer term strategy for you because you will be receiving coupon payments throughout the time the money is invested. There are a million ideas and people willing to sell a million different investment products. Municipal bonds are great because they are relatively less risky, returns are good, and you get tax benefits. Give them a look.

Good luck! And when you make your decision think through it very clearly. Anyone promising huge returns is probably going to make a major commission off of your money. So pay careful attention.

Answer 6

I'd take $5000 and put it in Forex trading and the rest I'd listen to the above suggestions. With Forex trading just buy a trading system and continue to work your job. This way you'll have two streams of income with no extra effort.

What you do (and what I did) is make sure the trading system has a 60 day money back guarantee first; then make sure you can use a demo account. A demo account let's you play the trading game with "play money" so you can see if you can profit from the trading system without investing your real cash.

Use the demo account for 59 days and if you see you can make profit you keep the system and invest your real cash. If there's no profit to be made you get a refund and try another system; there's literally no risk when buying one.

If you're interested I found reviews of the top 3 Forex trading systems: http://forex-tracer.the-perfect-solution...

Working + $5k in Forex trading using a decent system + the rest of that $30k invested in other places = definite path to wealth IMO.

Answer 7

Invest In ETF's: ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% - 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read.

ETFs have a lower turnover than most mutual funds. As ETFs do not require active management and hold nearly a steady stream of stocks, there is hardly any portfolio turnover. On the other hand, many actively managed mutual funds churn their portfolio many times throughout the year, leading to recurring transaction fees on every purchase and sale.

http://debts-to-wealth.com/category/Why-...

Answer 8

Beginner traders often fantasize or wonder about how some people are able to achieve tremendous profits by trading stocks just a few hours on a daily or weekly basis.

So going beyond the hype & the bells and whistles that a lot of the called "trading gurus" like to invoke, the real "secrets" of the stock market game are enclosed within the trading set ups and market signals you rely on to decide how to CHOOSE stocks, as well as WHEN to BUY & when to SELL them, or even when to SHORT SELL those that are poised for a profitable fall. So the clearer your set ups are, the faster you can spot a potentially profitable trading scenario and ACT ON IT reducing your risk.

Complicated technical systems and information overload can make you slow and confuse you right from the start, making you loose money instead of making your profits grow.

In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader. In order to succeed you will need to FOCUS on a set of simple trading strategies that you can implement without hesitation.

Fortunately some sites on the web do offer more effective and updated day trading methodologies. One of those sites that can show you how to take advantage of certain stocks on positive and negative momentum as well is http://www.MomentumStockPick.com

They focus on momentum stock trading strategies, that are practical and easier to apply than many other technical systems out there.

Stock trading doesn't have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency.