WDP-Acura TL

Curious the best way to invest $100,000. Its right now in a mutual funds account. Want the money to turn into a million dollars if possible. I'm 25 yrs old. Any suggestions on what I shoud do, thnx

Whiskers

Real Estate....

Dan Martin

Cocaine or real estate.

Slimey

A million by when?

I agree with wsklar though, buy a house. Real estate will appreciate at a pretty stable rate (over years), plus you get a tax deduction on interest and property taxes paid.

WDP-Acura TL

A million by age 35 to 45. Around that range

fdl

Buy lottery tickets.

Dan Martin

You'd need to find an investment with a 12.5% annual return if you want to make a million in 20 years.

Doc.Booty

Penny stocks!

Lung Fu Mo Shi

Specifically...mine.

rise

JJ4Short

Hell yeah especially if your white and in the suburbs, they'll never catch you. Buy a house far away from you and be a supplier of Cocaine, Crack, or Coochie cause there ain't no business like ho business. You'll have $100,000,000 by the time your 30.

Crazy Bimmer

Buy cheap houses, fix them up and sell them.

MisterMehoff

Best way to invest a million dollars...give it to me.

95gt

Damn that is a lot of money for a 25 year old. I want to be rich too.


Whats the best way to invest my $83.50

MisterMehoff

shiiit, must have had his grandfolks open up a mutual fund when he was 10.

Silver Spoons....j/k.

Jerky

real estate...hands down

tax deductible, will appreaciate, you can live in it, you can rent it out =cash flow

no capital gains tax when you cash out as long as you buy another property quickyl

ric

Involves an investment of sweat equity, but if you're into that, it can be very profitable.

Buy investment grade properties, preferably ones that need fixing up and are selling at the lower end of their neighborhood. Try to buy in neighborhoods that are "gentrifying" (every community has some neighborhood that used to be fashionable, declined, and is now rebounding). Buy the fixer upper, fix it up, and either capitalize on the increased equity or sell and move on. You can buy income-producing property if you want to manage it, or have someone else manage it for a fee.

As an alternative, you could have bought Dell when it was a stock bottom feeder. To that end, the stock market can be a very dependable basis for gradual increase, but you have to be both very skilled and very lucky to play out the gamble on rapid stock rises on your own.

JJ4Short

Sell Drugs!

dabuda

what is the returns on the mutual fund? not clear on what you're situation is but if the mutual fund returns are high might be better just to leave it there, most likely you'll have to pay a capital gains tax if you withdraw.

Doc.Booty

Seriously, what these other guys are saying. Real estate is relatively secure and a great place for large amounts of money.

chrismeoli

coming from a mortgage broker,,,listen to them.... go with a nice multi family,,,collect some rent and then sell the place at a profit too......

Zapata

mikeymobiles

Matters what type, how logn your leaving it in...ect...so many factors when it comes to mutal funds..

GreenMonster

I would find a financial planner, and work with them. Increasing your investment 10X in 10-20 years is unreasonable, but if you invest wisely, it'll make for a nice retirement fund

What's the general rule with investments ?? The 72 rule...

Found this page, it's kinda cool:

http://www.note.com/note/pp/tvm_mod.html

"The Rule of 72 states that an investment at a particular interest rate will double in a certain period of years. You can determine how quickly your investments will double simply by dividing 72 by the interest rate that you will receive. For example, an investment made at a 10% interest rate will double every 7.2 years. "

BlackTSX

25 with 100G's maybe he already took you up on that cocaine thing!

dallison

wow, i dunno how someone who is 25 has that kinda loot, but good luck with it

SpeedyV6

If you wanna swing for the fences go for OEX options. Don't be surprised if you strike out though.

iTimmy

Talk to a financial planner, there have been major break throughs with investing which you can accurately see into the future. Realestate is typically always a good idea, but I would talk with a proffesional advisor first, someone who is a CFP®- preffered- or at least a CLU or ChFC. With only 100k its going to take a while to have a million(by then a million will mean even less then it does now), unless your willing to add to it.

This is coming from another younger guy(23) who has a similar stash, but it started small and has been growing rapidly over the years. A single lump sum like this will not be enough to "live the good life", so plan accordingly if that's your goal.

95gt

iTimmy

Clearly you don't follow the Nobel prize for finance.

95gt

apparently me and the rest of the financial world (wall street) must have missed it.

Please post a link to this new modern method of making money with no risk and the amazing ability to predict the future

VeniceBeachTSX

I do.

In fact I recall not long ago when a little fund called LTCM, who based their investment model on the theories of several Nobel Prize winners, nearly caused a huge financial meltdown when their theories didn't work out in practice.

And I'm old enough to remember when other Nobel Prize winning theories led to the idea of "portfolio insurance," which melted down rather spectacularly in October 1987. What a day that was to be on a trading floor.

You want something predictable? Buy a well-balanced basket of government bonds from the US and other major countries. The income will be quite predictable and the international nature of the portfolio will even tend to counteract currency fluctuations over time. You won't make a whole lot on this, but it will be predictable.

iTimmy

This is not my area of expertise- as if that was not obvious already- but my financial advisor who is a CFP(and made court of the table last year) has shown me some impressive new program they are using. I don't know the details of it well enough to engage in a debate about it, however him being a CFP they have a code of ethics and I believe when he tells me things- I have no reason not to. Next time we meet I'll ask him more about it and see if I can find information about it online and I'll post it under a new thread.

SpeedyV6

What's he was showing you were projections. Most of these programs take a linear regression of what historically had been an optimal portfolio allocation and extend the results into the future. The problem is that the assumptions built into these models are questionable, especially if you try to project returns over a period of 30 years or more. Most discount brokers offer free financial planning software on their web sites that do the same thing but bear in mind that the underlying assumptions e built into the models are somewhat spurious.

If you're trying to educate yourself about this stuff it's always helpful to get the contrarian pov, even if you don't agree with it. Since most brokers are good at advancing the bullish argument you might want to check this site out for a bearish pov: www.prudentbear.com . Barron's magazine is also pretty good.

VeniceBeachTSX

What is often missing from these projections are several facts:

* If you buy at a significant market peak, the projections can be starting from an unrealistically high point. Those who made projections using the starting values on January 1, 2000 are way, way behind in many cases.
* The flip side is also true. If you project out from a market bottom, you're probably going to under-estimate significantly. A large part of Buffett's success is based on the fact that he was smart and fortunate enough to be starting out much of his investing in the 70s, when everybody was under-estimating the longer-term possibilities.
* The projections themselves are averages and can vary widely at various times. You don't know for sure that you're starting at an "average" time, and certainly can't tell if you'll be retiring at an "average" time. Regular re-evaluation is necessary. The accident of poor timing can take half a lifetime to make up.

And looking at the opposite side is always a good idea. You won't get it from most of the common channels so you really do have to look. If for no better reason than it often gives you lots of information to help formulate challenging questions.

Water-S

it's hard to turn a $100,000 real estate into a million dollar piece of land without either
#1. it becoming a prime location(due to a road being built there or something like that)
#2. someone famous lived there
#3. putting serious cash into it.
#4. the town/area grows like crazy(like at the rate faster than they can put up homes)
I have a mutial fund that yields 10.57% PER YEAR in a 10 year investment. It's American Balance Fund. You can buy into at Edward Jones. That means if you invested lets say 50 grand(i wouldn't invest all of it due to the market risk)you would yield 100 grand in 10 years on that 50 grand. but you have to take out taxes on the capital gains plus that doesn't count inflation. because 100 grand is worth more today than in 10 years.
I have another mutial fund called the American Growth fund that yields 12.42% PER YEAR in a 10 year investment. You can again buy in to at Edward Jones. so if you put 50 grand in it for 10 years. you'd have 110,000 grand then take off taxes and inflation.

Jerky: you said no capital gains on real estate. That is true but you have real estate tax and plus real estate isn't as easy to unload as mutial funds,stocks,bonds, etc. those you can unload in seconds with land it depends on the market. Plus you gotta take real estate rep's commission off.(which is 8-13%) on the 2 mutial funds i talked about above is 5.25% load fee(basically commission) which comes out even if he was crazy and invest all 100 grand in the 2 mutial funds i talked about. Let's say the real estate rep sells at 8.25%(which is cheap) this would cause him to loss 3000 more dollars. due to his or her commission.

VeniceBeachTSX

Yes and no.

If it is your primary residence, and you have lived in it for a specified period of time (I think it's 2 years, but don't recall exactly) then you get an exemption from some gains: up to $250K for an individual, and $500K for a couple. And you can only do this every so often, I think at most once every five years. Or maybe it's seven.

Old rules that allowed you to "roll" the gain into a new property and not pay taxes no longer apply.

WDP-Acura TL

Does every bank offer this type of mutual fund acct and I wonder if I will get a similar rate you are getting. Are you doing pretty good in that investment?

SpeedyV6

The returns he cites are historic rates of return, not expected rates of return. There's a huge sampling bias built into the selection of mutual funds a broker or bank will want to tout to their potential investors. You might do well, but don't count on it.

You can check Morningstar or the online websites of any discount broker (Fidelity, SCH, AMTD, ET) to screen for no-load funds whose returns have matched or surpassed those of load funds. In any event, I'd be reluctant to make any inferences about the future returns on a fund based on historical data.

fdl

Does it involve a delorean? If not, its