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What investment do you get the most for your return, ex: cds, stocks, etc.? |
What investment do you get the most for your return, ex: cds, stocks, etc.? when you mean "most for your return" I am thinking you mean either the greatest return with a minimum amount of risk, or I am thinking you mean overal greatest return. Risk and return have a fairly close correlation, so becides fixed incomes such as CD's, Government Bonds and Treasury's, the Risk and Return tend to be relative. Example; Stock might have a 50/50 chance of making 10% and loosing 10%, where Futures might have a 50/50 chance of gaining 25% and loosing 25%. If any one marketable security was superior in than Return was greater than Risk relative to other investments the market would immediately exploit it and the opportunity would dissapate to become relativly equivelent. Individual stock. I took 20 percent from my 401k plan, and do my own investing. Right now, I am outperformed all the fund in my 401k. This is not a joke. I am serious. that depends on the risk you are willing to take. real estate flipping of bank owned homes, just bought one for 40k put in 18k more to fix it up and sold it for over 139k on a quick sale (if i sat on it could have got more!!) check out the local real estate adds, or online info it is easy to start up and owning property is always a low risk bet! First you must understand that you have to be willing toaccept higher levels of risk (i.e. higher chance that your account values will go down in the short term) in order to seek higher rates of return. You also must let the length of time you can stay invested dictate your investment strategy to a great extent. CD's don't return much, but they are very safe. You can see big returns in stocks, but they are risky. I bought $1800 in stock with a company that I sold 5 years later for almost $18,000! But, usually I just go with mutual funds. These vary as far as what kind of return you can see from them, but historically, the ones with higher risks return more. They also lose more when they don't do good, but if you ride it out, the highs more than make up for the lows. |
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