Wisest Forms of Investments?

[RamistThomist]

What is the wisest avenue to go in investing money? I know people say to "diversify," but what are the pros and cons of x, y, z investments:

Gold
Silver
Money Market
Stock Market
Real Estate
Other
?

 

[ChristianTrader]

What is the wisest avenue to go in investing money? I know people say to "diversify," but what are the pros and cons of x, y, z investments:

Gold
Silver

The above two are "catastrophe metals" (gold more so). It is very hard to lose a substantial portion of value and in case of some major bad stuff happening, you could probably survive if you had some for extended period of time.

The problem is that you really dont gain much value in anything resembling a "normal market".

Money Market

Very stable and very liquid. Dont expect much more than basically keeping up with inflation.

Stock Market

Very broad category. Should be the majority of your investments. Probably the wisest thing for most would be to do mutual funds. Try not to cluster all your money in the same sectors. Also very liquid.

Real Estate

You can invest directly or your can invest through Stock market Reit or Stock market mutual funds. The last two can save headaches and are more liquid.

Other
?

It is usually not a question of wisest investment but in what proportion is should you spread your money around.

 

[matthew11v25]

Forbes Recommends S&P 500 / index funds for conservative growth while you are young. I would also recommend, if you do not already have it, an indexed universal life policy. Which has a death benefit (say $250,000), but also has cash value that can be built based on the rates of the S&P 500 (historically around 8%) and will eventually lock when the market takes a dive. This way you can get the best of both worlds.

My other advice that I have constantly received from financial mentors is: know what your green money and red money is!!! Red money is what you must have each money to survive and advance into future months (i.e. savings, bills, retirement, etc). Green money is what you can loose and be ok with. The "middle class" is known for playing with red money like it is green money...they may take monthly retirement funds and throw them at risky investments, or completely bank on their 401K.

Diversifying is very important. I would get saavy on real estate since it is by nature limited (only so much land), and the wealthiest people I know swear by it as the best form of investment.

 

[Puritan Sailor]

Just get started with a good mutual fund for now. You can diversify as you get more established in your career and have more income.

 

[NaphtaliPress]

But pick a fund carefully. Consider Scott Burns "couch potato" investment strategy. You can start simple with the basic potato approach and build up to more complex diversification as you have more assets.
http://assetbuilder.com/?cat=18

 

[Timothy William]

A mutual fund would be the best to start with. An exchange traded fund could be an idea if you want maximum liquidity, but if you not intending to actively move funds between asset classes an old fashioned mutual will probably meet all your needs.

In investing, remember that very few assets are ever significantly under- or over-valued. The key is not in trying to spot a bargain but in understanding risk, how it is distributed, how to absorb it and how to maximise gains from doing so. Consider diversifying your assets as much as you reasonably can, then leveraging whatever money you have through borrowing. Remember that stock markets tend to show negative serial correlation (good returns this year tend to imply bad returns next year) so get in when the market is low and out when it is high. Easy to say, obviously, but there are definitely times when it is one or the other. Again, don't be afraid to leverage if stocks (as a class, not individual stocks) are cheap and / or medium to long term interest rates are low. A balanced portfolio can see many reasonably risky assets combine to provide a safe enough, yet high growth, return. Most investors are either over cautious or take too large a risk by putting all their eggs in one basket - avoid both extremes.

Gold could be an idea, though I can see no good indication that it will continue its upward price movement of recent years. In all honesty I regard the gold price as being somewhat fickle, gold being overpriced for a consumer commodity, but with a premium added against the chance that someone might one day adopt it for a national currency once more. Contra the gold bugs I do not think it necessarily goes up when other stocks fall, nor is it riskless - it can fall for years, even decades. Silver I would avoid, I see no reason to price it as anything other than a commodity used in making jewelry and some other uses.

 

[Arch2k]

Just get started with a good mutual fund for now. You can diversify as you get more established in your career and have more income.

If you are wanting to invest for retirement, and a 401k is not available to you, you should invest your money in a ROTH IRA which is grows tax free. In a ROTH, you can invest your money in the mutual fund of your choice. Start saving for retirement now!

 

[Anton Bruckner]

What is the wisest avenue to go in investing money? I know people say to "diversify," but what are the pros and cons of x, y, z investments:

Gold
Silver
Money Market
Stock Market
Real Estate
Other
?

Research, Research, Research.

I would advise the following

1. Have about 10% in a savings account for easy access

2. 10% in minerals such as gold silver and platinum

3. 10% in inflation protected bonds. ticker symbol TIP

4. 70% in the stock market.
a) Utility companies in the largest cities and the fastest growing cities. I have some stock in Con Edison the local utility company for NYC. They have just declared $0.58 dividend per share, and they have consistently paid dividends throughout their existence. Their dividend yield amounts to 4.50% per year.

I would suggest China. With China's booming economy their utility companies stand to profit. But I don't invest in China because of what they do to Christians. Anyway some nice chinese utility companies are HNP and STP

b) General Foods and Beverages. I invest in an etf ticker symbol PBJ. It has Pepsi, Coca Cola, McDonalds, General Mills, Kellogs and Kraft as part of its portfolio. People need food to eat, its that simple, therefore it is best to invest in the most dominant companies in the food market.

c) Pharmacies. America spends about 9-13% of its GDP on healthcare and it is projected to grow. I've invested in PJP an etf with such companies as Pfizer, Merck, Lilly as part of its portfolio.

d) Cars. People needs cars to drive. Transportation has always been in demand from horses, carriages to automobiles. The Japanese companies are supremely positioned to take advantage. Toyota and Honda will be leading the pack. I suggest buying some shares in Toyota. But as for me, within 8 days I should be purchasing some stocks in Honda Mortors. HMC. Why, they have possibly the best engineered cars out there and with rising oil prices they will be able to take advantage of their engineering expertise and build fuel efficient cars. And Honda doesn't only sell cars.

"Further, Honda manufactures various power products, including power tillers, portable generators, general-purpose engines, grass cutters, outboard engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors. The company sells its products through various outlets, wholesalers, and independent retail dealers. Honda was founded by Soichiro Honda in 1946 and is based in Tokyo, Japan." Yahoo finance.