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Investments without any risks?



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amother


 

Post Tue, Jun 11 2013, 1:50 pm
Is there such a thing? I have about 300K that I would like to invest it but dont want to take much or any risks. Money markets and CDs give almost nothing
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busydev




 
 
    
 

Post Tue, Jun 11 2013, 2:04 pm
the higher the return the higher the risk.

so if you want to play it totally safe MM and CDs are your options.

then there are hedge funds which I think are riskier, but not much so they make more then CDs but not that much.

With the amount of money you are talking about, best would be to go to good financial planner and make sure to diversify!! Some in safe CDs, some in higher risk options. This way you dont have all your eggs in one basket and even if one thing falls thru you still have the rest.
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jerusalem-girl




 
 
    
 

Post Tue, Jun 11 2013, 2:20 pm
Depending on where you live, investing in a house/apt./ building may be an option.

Because of stricter regulations, the housing market in the United States is a lot more secure than it was a few years ago.
If you can buy something without a mortgage and that is already built= a hypothetical house:
1) you can rent it out. Say you recieve 1000 dollars a month (a low estimate for a house that costs 300K, I think)- That's a huge return every month. 3%

2) It's hard to predict which neighborhood will increase in value. But the general rule is that housing keeps going up. Now more moderately than before. But there's still an increase in value, generally. You always have an asset that you could sell. Hopefully it will be for more than you bought for.

There are no guarantees. Good luck!
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Fox




 
 
    
 

Post Tue, Jun 11 2013, 3:03 pm
No such thing as a free lunch, as the late Milton Friedman said.

As BusyDev pointed out, risk and reward are proportional.

I would suggest starting by downloading some of the materials at Fisher Investments. They are a wealth management company, so obviously they're seeking clients, but they offer a lot of excellent materials online to help you understand various investment options.

The biggest issue is identifying your investment goals. Do you need income from it, or are you primarily interested in growth? Do you need to keep your investments fairly liquid? How long do you plan to leave the money invested?

The answers to these questions and others will determine the best blend of investments.
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happy_tobeme




 
 
    
 

Post Tue, Jun 11 2013, 4:41 pm
Not investing itself will be a risk because of inflation.
Experts say inflation is, on average, 3% a year. So in 20 years that 300k will be worth a considerably less amount than it is today.
For example, to have the same purchasing power today that $300k had in 1990, you would need today, about $533k.
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Mrs Bissli




 
 
    
 

Post Tue, Jun 11 2013, 8:25 pm
As others stated, low risk = low return, high risk = high return.

Firstly, what is your investment horizon? Can you leave the money for 10/20/30+yrs (say, for retirement or children's wedding/house), or do you need to be able to "cash out" at near future? Property and equity are good long-term investment but not appropriate for short-term investment where the capital preservation is high priority.

Also how much risk can you take? What to invest differs if you're talking about spare $300k vs if the same amount is your entire liquid household assets.

Does tax play a role? (eg if you're higher bracket taxpayer). Muni bonds are traditional tax-efficient investment vehicles, but I'd be a bit careful esp with fiscal health of many municipalties.

If using financial advisors, always ask how they're being compensated.
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granolamom




 
 
    
 

Post Tue, Jun 11 2013, 8:49 pm
true what everyone else said about risk rising with return. bear in mind that low risk with low return might actually mean a loss when you factor in inflation.
but I've got a bridge I'm selling, if you're looking for a safe, high return investment ; )
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amother


 

Post Mon, Mar 31 2014, 11:30 pm
Warren Buffett says only to buy stocks from solid companies the profits and dividends reinvest themselves and that's how he claims you can build up your wealth. Not to buy risky stocks just invest and sit back
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wife2




 
 
    
 

Post Tue, Apr 01 2014, 12:04 am
You can choose safer stocks and bonds with an index fund from Vanguard or something similar - there are also very low fees and you can choose based on your risk tolerance. If you have a lower risk tolerance, you will probably be better off with more bonds and less stocks, but it still may be a better option than CD's.

Again, not investing is not a good option since you are losing money to inflation.
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rosehill




 
 
    
 

Post Tue, Apr 01 2014, 7:47 am
It also depends on when you're going to want to use the money. If you want to buy a house with it in 2-3 years, you're better off leaving it somewhere very safe, like bank CD, even if that means low returns.

If you want it for your retirement in 40 years, you can afford something riskier, if you can stomach the ups and downs, as over time you're likely to make money. I personally like a mutual fund that tracks the s&p. They tend to do as we'll or better than actively managed funds, with lower expenses, and almost always make money over extended lengths of time.

Of course, there are far riskier options with even more upside potential, but you'll have to ask someone else more about that!

If your time frame is between the two extremes, you don't have to park it all in the one place.

With that much money involved, you should probably consult with your tax professional before your final decision, because there are things to keep in mind tax-wise when buying and selling at this level. You don't want any surprises at tax time!
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Mrs Bissli




 
 
    
 

Post Tue, Apr 01 2014, 8:11 pm
amother wrote:
Warren Buffett says only to buy stocks from solid companies the profits and dividends reinvest themselves and that's how he claims you can build up your wealth. Not to buy risky stocks just invest and sit back


Yeah, but Warren Buffett has been massively underperforming the overall equity market because he focused on solid companies rather than companies with growth prospects. There is no such thing as "just invest and sit back"--even for blue chip companies investing needs monitoring. My late FIL thought GM was a solid blue-chip company back in 1980s.
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mom9876




 
 
    
 

Post Wed, Apr 02 2014, 4:33 pm
I would recommend you calling someon ethat I had a great experience with and really is honest and helpful.
Joel Kaplowitz 732-922-6300 ext 125 and tell him aviva sent you and he will take care of you
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