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What is the best way to invest money ??


What is the best way to invest money ??

You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion

Buying a house instead of renting will save you a lot of money in the long run. You don't have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don't know how to handle deadbeat renters, you can have trouble.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planni...
http://www.dallasnews.com/sharedcontent/...
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetalloca...
https://flagship.vanguard.com/VGApp/hnw/...

That really depends on how much you have to work with and what your investment horizons are.

You could invest it through stock markets or start a business

http://sponkit.wordpress.com

Hi there,

I personally have a thing for real estate.......... I think it comes down to what you enjoy and want to spend the time learning about.

Cheers, ToNy!
"Success.Trail"

Pay yourself first. (yr. investments)

Just do it!
Find a broker (Vanguard, Oppenheimer) with an good index or S&P 500 to start off with, and then contribute an automatic amount every month...start off with 200 bucks a month, and then work your way up.

It you ask 20 professional investors that question, I have no doubt you will receive 20 different answers. Asking here, you will also receive answers as varied as the snow flakes.

There is no best way, in other words. There are good ways and not so good ways.

It is a commonly accepted principle that a diversified portfolio of investments will increase your return and reduce your risk. There have probably been 50 books written on the subject and 3000 Ph. Ds awarded for research on that subject.

About 30 trillion dollars has been invested based on that principle also.

It may not however be the best way. There are certainly many arguments that can be presented opposed to that strategy. But nevertheless it does seem to offer one the opportunity to invest with the chance of making decent returns with only moderate risk.

I don't know

Hedge Funds. (If you have at least $10,000,000.00 GBP)

Learn as much as you can about the market. I think a good tool to use is to see what the best investors are buying and selling - you can see this info at http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can read posts on investing from the best traders, as well as share your own investing ideas. There is a charting feature, so you can see how your portfolio performs compared to the S&P 500. Also, you can create your own "group" so that you can see how you are doing compared to your friends.

Here are this month's best traders:

http://www.top10traders.com/Top10Standin...

Hope this helps.

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