If you had 500k how would you invest?

Question

Ive always wondered how people would invest with 500 grand? How much could you make in a year investing 500 grand?

Answer 1

What I tell my clients is this:

Invest part of your money to fixed income investments, like treasury bills, bank CDs, rental property income. You can approach any financial institution to help you set up an account.

Now, to keep up with rising costs, you need to allocate part of your money for capital growth securities, like stocks, foreign exchange, and commodities. There are a number of professional fund managers out there that can help you with this.

For newbie or risk averse investors, I recommend 80/20 allocation in favor of fixed income investments. For those who look for higher profit potential, I'd say allocate 50/50 to both fixed income and capital growth.

Hope this helps!

Jim http://jsforex.blogspot.com

Answer 2

Russesl,

A mix portfoilo will do better.

A part in real estate, another part in gold, next in equity instruments like mutual funds, direct equity, ETF, Index fund etc, and a safer portion to the debt fund like bank FD's post office schemes, liquid funds to get monthly income.

Does this make sense?

Answer 3

Most of it in index funds.  Domestic, International, REITS, bond funds.

I'd also make sure I eliminated any high interest debt (aka 6% or more) & had a decent sized portion set aside as an emergency fund in an good ol' fashioned brick & mortar FDIC insured bank.

But I'd also want some 'play' money to get into some individual stocks.  'Diversification' wouldn't be as big a deal w/ me since the lion's share will be diversified via the index funds.  But the prospect of trying to get some positive gains in this otherwise poor environment is real enticing to me.

Answer 4

my horizon is 20 yr, so i'd go w/growth stock mutual funds w/10+ year track record

Answer 5

Gold or corn futures.

Answer 6

maybe you can lend me 1k for starting an online business or you can be my partner:)

Answer 7

I would buy a couple of houses in different countries bacause they are so cheap every where at the moment , then 5 to10 there value would increase.