I have $25k sitting around, doing nothing for me. How can I effectively invest it for a 7% or greater return?

Question

Just sitting there in a checking account.

Answer 1

Buy bank stocks. They are cheap right now because of the credit crisis, but they'll most likely rise significantly long term. And major banks like Citibank or Bank of America give an annual dividend of over 7%.

Answer 2

I have a product that averages 12%. Risk Free. Tax Free. Do not invest in stock it is too risky and you could possibly lose your funds and do not let it sit in the bank. banks average return is 1-1.5% Inflation is 3.1% get the picture. e-mail me for details

Answer 3

There are no guaranteed 7% returns.  If you want safety, go to a money-market fund.

Answer 4

The only way that you can get a 7% or greater return is by investing in the stock market. And dont expect a short term gain either. You have to be prepared for a long term committment, atleast 10 years. I would advise researching some low fee mutual funds focusing in international, equities, commodity and utilites stocks. You might want to focus a little more on small or mid cap funds as compared to large cap funds if you want even better returns on investment (however there is higher risk as well).

Two great websites for learning more about fund investing are www.kiplinger.com and www.schwab.com Finally I would like to say that if you are young, I would recommend a more aggresive investing strategy (greater risk, great returns) but if you are close to retirement you should rethink that 7% return goal and be satisfied with a lower return by investing in safe stock funds or bonds.

Answer 5

I wish I had 25k just sitting around...

Just kidding.  Anyway, there are a few options.  The least safe but fastest and greatest return would be gotten from the stock market.  A long-term investment would be a CD or a savings account, but you generally don't get a high rate of return.  A not-as-safe but generally good investment is to... invest.  You can start a company, franchise a fast-food chain (there are GREAT franchising opportunities in small towns, people sometimes just want quick, cheap food.  Small town folk like me need to commute, too!)  Anyway you decide to do it though, you may want to start out by asking at your bank for some help.

Answer 6

If I had that cash, I'd buy a rental property.  Tax deductions, appreciation and cash flow can make you a very happy person.  Good luck!

Answer 7

buy a crackhouse and find some tenants

Answer 8

Going with a moderately aggressive strategy is a good idea.

You could invest $5,000 in a small business and earn 20-24% per year ($1,000-1,200/year).

Go to http://get24percent.blogspot.com/2008/06...

Answer 9

As recommended by Warren Buffet. An index fund is the best investment option.

It basically mirrors the Index, and is known to beat even the best fund managers in terms of return.

Who are we to argue with Warren

Answer 10

There are some alternatives open to you.  They are not without risk, moderate risk.  Several preferred stocks pay betther than 7% and several preferred funds even pay better than 10%.  The main risk to such an investment is inflation and the Fed jacking up interest rates.  At the moment the Fed seems to be more worried about saving the investment bankers from their own folly.  

Another alternative that does not quite yield as much currently but certainly has the potential to yield more over the long therm are Pipeline LPs.

Here is a limited selection:

preferreds:  PUK-  8.5%

DRE-O 10.5%

ABV-H  8.7%

STI-Z 9.3%

PSA-I  8.2%

Pipelines

ETP  8.5%

MMP 7.5%

SXP  7.7%

PAA 7.3%

Funds:

RNP 12.7%