Non-Stock Investing?

Question

My husband and I have a fair chunk of money that we want out of the stock market and into a tangible investment. I am not really sure what else is good to invest in. We are seeing a financial advisor next week but I want to go in looking like I know something and am not just an idiot with $80,000.

Would buying a fixer-uper home in a good neighbourhood and rehabbing classify as an investment?

Thanks in advance, gurus.

Answer 1

You're taking money out of a diversified portfolio that historically has done very well (over long periods of time) and putting into one asset (which means no diversification) and can easily be lost in the worst side of the market (real estate).

Good luck with that.

Suggestion;

Don't listen to different sales reps selling you their idea of the best investment today.  read a couple of books on investing & some on Mutual Funds.  Learn about risk. time horizons, asset allocation & diversification.  As it stands now.... you seem inclined to take money out of a temporarily declining asset and move into one that may be in worse shape.

There's a reason most city, state, employer based pension plans invest in the market.  It works!  (you just have to understand the occasional pain).  I've gone through periods much worse than this (in the market). people that don't understand it.... lose.

Answer 2

WHy don't you try forex trading. It bring in a lot of aggressive charecteristics in you. Life would suddenly be fun and challenging. With huge volume of trading forex is world's biggest market . FOrex trading if you calculate on the basis of returns is second to none.

Answer 3

I think it really depends on what your time horizon is for having access to your investment (and your ultimate profits!)

Now, admittedly, I'm an advocate of value investing in the stock market (finding great companies, buying them at prices that are at a discount, and only selling once they become overvalued...).  

While the stock market is down for the year (which, I know, doesn't make anyone happy...), the upside to this is that it can be a GREAT time to invest in great companies, because they may now be trading at a significant discount.

The key here is to know how to find them, knowing what a great price is, and being patient and disciplined (in other words, not panicking if there's a bad trading day...)

Stock market investing can be stressful if you allow your emotions to control how you invest.  Regardless of where you and your husband choose to invest, keep your emotions under check, and you'll make wise decisions about where to invest your hard-earned money, whether that's in or out of the stock market.

Hope this helps, and good luck!