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Where to put money to invest better

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Money Talk > Investing, Stocks and Bonds

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californian12783
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Where to put money to invest better  Reply with quote  

hi, I am new here but I am seeking advice, I will be selling my home in this June, I will be making a profit of arund $80k where can I put this money into so it can grow more in the next 5 to 6 years?? I need help and advice thanks
Post Wed Mar 09, 2016 9:49 pm
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oldguy
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You don't have many options due to your shortterm (5 -6 years) need. For 5 years, a 5-year bond fund would work, they pay about 1.5%/yr right now.

If you can commit a part of your $80k for a longer duration, you could use longterm products that typically pay about an 11%/yr return, your money doubles every 6.5 years on AVERAGE. But the loses/gains could be almost anything in any one time block - it takes a few periods of time to cancel the ups/downs. FYI - $80k at 11%/yr for 30 yrs would be about $1,840,000 - it would be quite an opportunity for a young person who has the time to wait.
Post Wed Mar 09, 2016 11:16 pm
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RichS
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Can someone tell me where you can get an average of 11% today, 2016, without a tremendous amount of risk?
Post Wed Apr 06, 2016 3:23 am
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oldguy
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quote:
Can someone tell me where you can get an average of 11% today, 2016


It is not specific to 'today', or to 2016 - it's been averaging about 11%/yr for a century. Pick almost any 30-yr-block of time ( the usual wealth-building period that most of us have before we switch to wealth-preservation).

http://politicalcalculations.blogspot.com/2006/12/sp-500-at-your-fingertips.html#.VwSF9HqyD5x
Post Wed Apr 06, 2016 3:45 am
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Publius
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quote:
Originally posted by RichS
Can someone tell me where you can get an average of 11% today, 2016, without a tremendous amount of risk?


These two ideas are mutually exclusive. Risk is always proportional to return. oldbuy is talking about the overall equities market's return. The reason he is stressing a long term horizon is to mitigate the risk of short term down turns. It is true that the markets have returned annualized 10-11% with reinvested dividends over almost all 30 year periods for the last century+. The reason the long time horizon is important is because there have also been short periods of extreme loss. If you look at the peak to trough during the "great recession" the US equities market lost greater than 50%. So if you needed that money in 2009 to fund retirement or a large purchase, you would have been in tough shape.
Post Sun Apr 24, 2016 12:08 pm
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henritte.courcelle
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Why don't you try investing your money in Forex market? This has been the newest trend today and a lot of testimonials that Forex trading helped them a lot. Here's what you should know about Forex Trading.
Post Thu Apr 06, 2017 1:24 am
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