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- Finances (http://www.cougarguard.com/forum/forumdisplay.php?f=27)

- - Investing Short Term (http://www.cougarguard.com/forum/showthread.php?t=6306)

Quote:

Originally Posted by jay santos (Post 57589)

Buying one stock is order of magnitude more risky than buying an index fund (which I would call high risk). Leveraging a real estate purchase is order of magnitude more risky than buying one stock. And giving money to your brother-in-law as his financial partner for his business idea is order of magnitude more risky than the real estate purchase. This kind of aggressiveness is not what I'm talking about.

These are lessons I am learning the hard way.

Quote:

Originally Posted by tooblue (Post 57588)

So what kind of index mutal fund exactly?

Mrs. tooblue is very interested in this thread and was even tempted to register to ask questions as she handles our money and we in fact have some money that currently is just sitting in a retirement savings account that we cannot touch but can invest.

you are probably wanting to invest long term as you probably can't use that money for another 35-40 years. A good rule of thumb is that you diversify (always). Another rule of thumb is that from about 20-40 years old you should be in higher risk stocks (again you are diversifying and not putting all your eggs in one basket). Once you get to about 40-45 you will want to change your portfolio to moderate risk. Once you hit 60+ you will want to lower your risk more.

Now knowing your situation you will have a nice pension so this money is not essential to you buying milk when you are 65. Find some nice higher risk mutual funds that hopefully can make you 15-18% over the next 7-10 years (re-evaluate every year your portfolio)

Its probably good that you talk with a financial professional to help you with your long term investing.

Quote:

Originally Posted by Mormon Red Death (Post 57623)

Its probably good that you talk with a financial professional to help you with your long term investing.

I would avoid "financial professionals" like the plague. They will want to make a commission off you. If not, they're probably minimally educated and trained to steer you towards certain investment vehicles that may or may not be good for you.

Start with that diehards forum I linked and learn as much as you can. You can't trust anyone to take care of your money other than yourself.

Quote:

Originally Posted by DrumNFeather (Post 57550)

Let's say someone gave you 4 to 5 thousand dollars and told you to invest it anyway you wanted to, but that the investment period would be short term (2-3 years).

What would be the best way to invest that money to gain the most return?

This is your first assignment for the new MBA program, isn't it.

You had better thank these guys for doing your homework for you.;)

Quote:

Originally Posted by bluegoose (Post 57665)

This is your first assignment for the new MBA program, isn't it.

You had better thank these guys for doing your homework for you.;)

Haha, no!

I actually think I'm trying to be more savy than I actually am. My student loan just came through and I have a little extra on it and I'm just trying to figure out a way to invest that money so I'll have a little more to start paying off my loans when I'm done.

Quote:

Originally Posted by DrumNFeather (Post 57671)

I would be more cautious than I advised if you're investing with someone else's money.

Quote:

Originally Posted by jay santos (Post 57679)

I would be more cautious than I advised if you're investing with someone else's money.

I'll either end up putting it in savings or giving it back to the school...I was just wondering if there was a safe way to accrue some interest on it while I was in school.

Quote:

Originally Posted by DrumNFeather (Post 57681)

I'll either end up putting it in savings or giving it back to the school...I was just wondering if there was a safe way to accrue some interest on it while I was in school.

You probably could, but that's a rare case I would probably say avoid equities.

Quote:

Originally Posted by DrumNFeather (Post 57681)

I'll either end up putting it in savings or giving it back to the school...I was just wondering if there was a safe way to accrue some interest on it while I was in school.

Put it in a high interest rate...savigns account..

4000 turns into $4888 in 4 years at 5% no risk at all... except taxes..

careful with that $

Quote:

Originally Posted by jay santos (Post 57679)

I would be more cautious than I advised if you're investing with someone else's money.

Wow, yes, me too!