NeedanS2KNOW

Ok so I just came across some money, about $50k. I am wondering what the best way to invest it would be? I was thinking of trying to buy a foreclosure or some type of real estate. I am currently debt free, single, no kids, no house (I rent). (No S2K either but I'd like to invest my money and have my money work for me before I go and buy a toy!). I have found foreclosures in my area anywhere from $30k and up, I'd like to get a multi family to rent out and also live in. I also thought about investing in Tax Liens/Sales/Deeds, but I don't much about them. I think MA pays back 16% after 6 months but I'm not too sure. Stocks kind of scare me, I do own a few stocks already, but not much big money. I just want to make the most out of my capital and invest it right! Any tips are very welcome, please shoot some suggestions my way! Thanks!

taylormetric

Go here, become a member of the forum, and read A LOT. Wouldn't hurt to make some friends there too...many very successful folks.

http://www.thefastlaneforum.com

There's a lifetime's worth of great advice and stories there.

(Not affiliated btw...just a member and big advocate myself)

Sent from my Galaxy Nexus using Tapatalk 2

NeedanS2KNOW

Thanks for the link to those forums! It definitely seems like there is a lot of good and useful info on there!

rob-2

Put it in many different investments. Do some foreign index funds, metals, natural resources, buy into a few companies you know are well managed and buy some domestic mutual funds. If you buy a stock, it should pay dividends.

I wouldn't put $50k into one thing. I certainly wouldn't buy a single property unless you were well invested elsewhere.

Don't own a home and want to? Try buying one you can rent a room out for a second source of funds. Take that money monthly and invest in a series of investment tools. Not sure you can afford a home? Buy down market, something small, and when life changes rent out the entire home.

Don't fall into the trap that your home is an investments. Investments make a return, they aren't something you live in.

NeedanS2KNOW

I don't know much about investing and feel like it's too much of a gamble to invest in stocks, and funds seems like they would take a long time to make money and are still a gamble.
I am debt free, single, and rent an apartment. I was thinking of buying a 2 family house and live in one apartment and rent out the other. Might be able to find a foreclosure I could buy for cash and not have a mortgage payment and have money coming in from the tenants...

epoch707

I disagree completely. You are young, stay liquid, trust me don't buy a house until you are willing to commit. Invest only in things that you understand or are educated about. Stocks may be risky to this poster but not to me... If you are trained and financially educated, you are able to read a financial statement and value a company. If you can do this, you can buy good companies that are undervalued.

I'll give you an investment tip too, I like this dividend stock MO (cigarette company). They make a cigarette for 1 cent and sell it for a dollar, the product is addictive and people will continue smoking forever.

This company is well managed, and the balance sheet is solid. They make so much cash flow that the dividend yield is sub 5%, allocated like 5K into this and just forget about it. As what to do with your 50k, financially educate yourself like the other posters have been saying. Check this article out, it shows you (and educates you) about choosing the right companies for stocks. How to Invest Like Warren Buffett For Dummies

I find it funny that people spends months before trying to purchase a car in order to get the best deal, but take 10 minutes in choosing which mutual fund to invest in... Don't invest in mutual funds (I dont)

If I were you, I would try to invest and grow your 50k so that I would have 100k. Once I have 100k, invest in an apartment building. Or you buy a cash flowing business, but it requires a little more saavy, I can go on and on about that too...

Ryan2949

I wish I understood the business world and investing as much as some of you, but sometimes when I read through threads or forums like this, it just confuses me. Is this something you have been learning about for years or just somewhat of a "gift"?

Boundsyo2

I would agree that diversifying is a must. Honestly, I would take a serious look at buying some silver bullions like peace silver dollars. Way cheaper that Gold and has a pretty steady uptick in value.

Heyitsgary

Just curious,

I don't believe anywhere in your posts you've actually stated what your GOALS are? Are you trying to turn 50K into 100K in 2 years, 5 years, 10 years, more than that? Are you trying to have that 50K work for you and provide $1K, $5K, $10K (potentially) per year that you can use elsewhere? Do you need it to be liquid so you can use it for things as you make life decisions?

In general, all investments have both a risk and a reward. The higher the potential reward, the more likely there is a significant risk. Also, in general, the longer you have before you need the money, the riskier you can be, since you have more time to recover if the investment doesn't pan out.

As Epoch stated, which I also think is funny: I recently read a book on wealth accumulation (not investing). While its a little dated (I think its about 20 years old since the last edition), the basic principles are similar. One of the 'take-aways' for me was a similar comment to above: People will spend months and months trying to save a few hundred dollars on the price of a car (what's your time worth?), and follow that with thinking that spending a few dollars to get financial advice is worthless.

As to your comments about not knowing this or not knowing that. You should decide if its worth learning enough to be self sufficient or it's a better use of your time/resources to find someone to do it for you. There's no right or wrong answer, only your answer. Just like plumbing, when something breaks, do you learn how to fix it, or do you call the plumber to do it.

rob-2

Than buy bonds. New research is coming out that on net bonds have preformed as well as stocks inflation adjusted.

I don't know what you're trying to do but I just gave you a few grand worth of advice.