I have 1000.00 dollars every month to invest please give me the best way to invest the money i am 50 years old

Question

I have 1000.00 dollars every month to invest please give me the best way to invest the money i am 50 years old

Answer 1

At 50 you're young enough to be mostly invested in stocks. I'd suggest picking a good mutual fund family and picking a couple of diversified funds which fit your risk profile and regularly invest in them over time. T. Rowe Price is my favorite:

http://www.troweprice.com/retailHome/0,,...

Good luck.

Answer 2

Will you absolutely die if any of this money is lost?  If yes, then buy the longest term CD your bank has to offer, like 5 years, but first compare the interest rates.  If the short term CDs pay a higher interest rates, go with the shorter term.  Get a CD every month, and you will have "staggered" maturity dates, which means at the end of the CD period, say 5 years, if you need the money, you can get it without interest penalty.

If you have a greater risk tolerance, like if you have a good job, and you want to earn a higher rate of return than CDs offer, and you can live with volatility, then find a bank that has an investment department.  Have them give you the questionnaire that develops your best risk-return spot, and then they will tell you which mutual funds to invest in to achieve that risk-return portfolio.

At your age, if you have a good job, and are going to keep working, it's not unheard of for your investment portfolio to be 70% equity and 30% fixed income, but you should understand that stocks (equity) are volatile, that is, they go down as well as up, even though they provide the opportunity for higher long term yield.

It's best that you find a bank that has a good investment department (I used both PNC and Chase) and they can help you develop your program.

Answer 3

I would suggest you go see a financial planner.  The best way for you to invest 1000/month is not the same as the best way for someone else.  Many more questions have to be answered before you can make a decision.

What do yo need the money for?

When will you need the money?

What is your risk tolerance?

How much debt do you have, and what kind of debt is it?

These are only a few of the questions that need to be answered to arrive at the best answer for you.