Lux Investing
How should I invest my money?
How could I invest $5,000 a year? I would love to save/male 100,000 in 10 years. or probably more than that. I want the most return if possible. thank you
Public Comments
- First determine what it is you are saving for. Just saving money for the sake of saving money usually doesn't allow you to maximize your return. If you are saving for retirement, then you should be putting it in an IRA, Roth IRA, or a 401k (or equivalent). You won't be able to touch the money until you retire (unless you want a hefty tax penalty), but these types of accounts usually provide the best possible return because of the enormous tax benefits (especially the Roth IRA) or in the case of a 401k, an employer match. If you're saving for a house, a boat, or something more near term, taxes become an issue as well as the volatility of the stock market. If you need the money in 10 years, you're best bet is a mix of equity (stock and/or index funds) and bonds/bond funds. Then you'll want to re-adjust annually or semi-annual gradually reducing your percentage in equity and putting it into safer things like bonds and CDs. By the last year before you take it out, it should all be in money markets, CDs, and bonds. Try to avoid paying short term capital gains tax (by not picking good long term assets) and lots of commissions (by using a discount broker like eTrade and only making serious moves annually unless you need to). Also since you're not in a tax sheltered account, pick tax friendly funds (ie funds that don't have a lot of equity turn over) or the capital gains will eat into your return. Hope that helps.
- I would read a lot on investing before you shell out that much cash. A great starting book is Rich Dad, Poor Dad by Robert Kiyosaki. Its his story of having his friends dad as a financial mentor who did not have a lot of education but had a great knowledge of how money works and his dad a highly educated government worker who didn't become rich even though he worked hard all his life. It teaches you what you should know and how to change your thinking about money.
- If you are serious to invest, you can google for HSFX Asset Management and start making consistent return!
- Investing is not that easy. I would suggest you invest on some ideal and good business. Don't put your money in risk. Because they will just take money out from your pocket. To learn how to invest please don't hesitate to contact us. thank you.. email address: lesjardin82@yahoo.com
