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"Safe" investment suggestion for 3 to 5 years with $50k - 60k

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"Safe" investment suggestion for 3 to 5 years with $50k - 60k

 
Old 01-07-2014, 01:24 PM
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Default "Safe" investment suggestion for 3 to 5 years with $50k - 60k

I am looking for some relatively safe investment for 3 to 5 years with $50k - 60k.

I can put them in a CD, but I guess I am trying to see if there are anything out there that returns a little more but still stay on the safe side.

I understand less risk means less return, I am ok with that. But sitting in the saving account is like losing money every day.
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Old 01-07-2014, 04:05 PM
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You're right about leaving long term money in a CD/saving account, it is like losing money. Due to 2-3% avg inflation you are losing purchasing power. If you are a relatively young person 20-40 years old and not due for retirement in the next 5-8 years. I'd recommend hiqh quality blue-chip dividend stocks.

Procter and Gamble
Johnson and Johnson
Pepsi Co
Coca Cola
Kimberly Clark
Chevron
Conoco Phillips
General Mills
Clorox

ETC ETC ETC.

Relatively safe stocks with decent yields (3-4%)

Or if you dont want to buy individual stocks, make it simple, just dump it in a low expense ratio passive index, like the Vanguard Admiral Shares. Requires $10,000 to start, matches the SP500 and only a 0.05% expense ratio.

Good luck.
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Old 01-07-2014, 07:33 PM
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How about an REIT? They generally have a fixed term, so you know when you'll get it back. I got into a 5 year one about 18 months ago that has been paying about 6.5% . However, it is NOT a liquid investment - it is absolutely closed once you're in.
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Old 01-08-2014, 06:32 PM
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Check out CEF's such was WIW, ACG. AWF, etc.

Risk is involved but a good steady flow of returns every month.

If you have access to overseas banking, there are countries with much higher interest rates than here in the US.

For example, China has rates ranging from 6-8% for 6-8 month timed deposits (CDS).
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Old 04-23-2014, 10:17 AM
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Originally Posted by Heyitsgary View Post
How about an REIT? They generally have a fixed term, so you know when you'll get it back. I got into a 5 year one about 18 months ago that has been paying about 6.5% . However, it is NOT a liquid investment - it is absolutely closed once you're in.

I have been recently interested in REIT's and like the idea of them. I have been reading up on them. But one thing is holding me back, I feel like there may be a looming bubble in REIT's coming. Does anyone else more experienced feel the same about this situation?
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Old 04-23-2014, 11:06 AM
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Originally Posted by FWLBP View Post
Originally Posted by Heyitsgary' timestamp='1389155612' post='22954872
How about an REIT? They generally have a fixed term, so you know when you'll get it back. I got into a 5 year one about 18 months ago that has been paying about 6.5% . However, it is NOT a liquid investment - it is absolutely closed once you're in.

I have been recently interested in REIT's and like the idea of them. I have been reading up on them. But one thing is holding me back, I feel like there may be a looming bubble in REIT's coming. Does anyone else more experienced feel the same about this situation?
depends on the REIT imo. I think REITs will be fine while lending is still so cheap. There are some REITS that have very low near term debt obligations. Some until 2017-2020.
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Old 04-23-2014, 01:50 PM
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+1 for the Vanguard Fund. I have mine in the lower-dollar-amount entry (MCG) and have been doing dandy.
I've also diversified a lesser amount into their Wilshire 5000-like product, VTI.

Also, look at your total net worth and talk to a fee-based financial planner: there may be some consolidation or realignment options you may have with that kind of cash lying around.
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Old 04-25-2014, 10:46 AM
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I personally like REIT's Realty Income "O" and American Realty Capital Properties "ARCP". With interest rates eventually rising soon O might be a better pick with trackrecord and the rates they have their debt. monthly dividends are nice too.
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Old 10-30-2014, 01:52 PM
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ok, this is not safe as milk, but....but if I had that to invest and just that I would bank on a 3% return plus....buy some apple.

with $50,000 you can get into about 450-500 shares...the dividend at this point is $1.89 per year, or 945.00: taxed at a lower rate with no appreciation, look at how well the company is run and how much appreciation it has taken in the past 5 years!

no guarantees, but it is a simple way to earn better returns with less risk ....now a balanced portfolio is what many would recommend, it is way safe but what are the chances of a good dividend and appreciation like apple?

best of luck, invest in something you understand, have researched, and believe in.

I have more than that in apple and think it a good "hold" at this point.
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Old 10-30-2014, 02:00 PM
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I looked at annuity. They seems to be on the safe side with some gain, but I don't know too much about them.
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