What would be a good investment strategy for me?

Question

I'm 28 years old, I make a little over 200K a year and i have over 300K in liquid cash in separate bank accounts. I don't know what to invest in because the market is garbage. My goal is to have a million by the time I'm 35 and I hope that with solid investments and some possible continued growth in income, I can accomplish this. Can someone give me some good investment strategies?

Answer 1

Everyone's financial situation is different and your best bet would be to consult a fee-only certifed financial planner. They can help you look over your particular situation and give you some advice.

In general, if you don't want to actively manage your own investment you have two options: (1) give your money to a professional money manager and have them run your money for you or (2) invest in a mutual fund run by an experienced money manager with a consistent history of beating the market in up years (and especially in down years), or an index mutual fund that track for instance the S&P 500.

If you want to do your own money management you need to start doing a lot of research into your investment targets, look into companies to invest in and make sure your investments are behaving as expected.

Good luck.

Answer 2

Just remember past performance of mutual funds or money managers is not correlated with future performance. USually a fund will have three or four years of spectacular performance, followed by three or four years of garbage performance.

Back when I was working in computers, I remember a colleague who had several hundred K under management of an investment group. They lost 1/3 of it for him.

Don't be too quick to trust the professional experts.

Answer 3

A number of busy professionals hire the services of a money manager to help them manage their investment portfolio.

Money managers are defined as "A business or bank responsible for managing the securities portfolio of an individual or institutional investor."

Typically, money managers are qualified professionals whose job is to help you get the best return for your money. They research and select different investment options, monitor the different markets to help you maximize returns.

In return for a fee, your money manager will help you develop an appropriate investment strategy, and buying and selling securities to meet those goals. With fee-based management, as opposed to transaction-based management, you and your advisor are on the same side. You no longer have to question the decisions of a broker to buy or sell your securities.

A professional money manager does not receive commissions on transactions, but are paid either based on a percentage of assets under management, or earn their fees based on returns generated for your portfolio. Therefore, it is in the best interest of both the money manager and client to see the portfolio grow.

Google "money manager" to find a manager that's good for you.

Good luck and have a nice day!

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