FRIHOSTFORUMSSEARCHFAQTOSBLOGSCOMPETITIONS
You are invited to Log in or Register a free Frihost Account!


Investments...





rainmaker
Hello everyone...

The only knowledge I have on this topic is from my high school economics class, but recently I've been assessing the various types of investments. As it stands, I have only ever used savings accounts and CDs. I'm just curious how risky money market investments are. I'd like to invest some of my extra money without too high of a risk for when I'm through with college, but I'd like to have as little of a risk as possible. Can anyone make any suggestions?

Thanks in advance!

--rainmaker
Detremmerie
As always, there's no golden rule. If you take the investing into your own hads (that is not giving it to a bank to put it on a savings account) you will always have the risk of facing a loss... I'm not really into low risk investments, and I believe stock markets are getting a little ahead of themselves. I'd advise you to get into the stuff a little more, and not just follow anyones advice blindly.

Good luck
Matt
rainmaker
So what is the risk like on money market funds? I've heard of blue chip companies or something like that...are these lower risk? Like I say, I know little to nothing about this subject, so I appreciate the input.

Thanks again!

--rainmaker
jeffapotimus
Money market funds are generally a low-risk proposition. They work like mutual funds, but instead of buying stock they buy bonds and secured debt from government organizations, large banks, corporations, etc...

Your deposits aren't federally insured like with a bank account, but it is extremely unlikely that a MMF from a reputable brokerage will ever be at any risk of default, since many of the assets it invests in are secured in some way.

Also, you can typically start investing with $1000 or less.

Money market ACCOUNTS, on the other hand, are a different thing entirely. These are basically higher-yield savings accounts available at most banks. They generally have higher minimum balance requirements than other savings accounts.
rainmaker
Would the stock markets be the only option for a short-term high yield investment? I have a feeling that this is the case, but I am just checking.

Thanks for any input!
corridor_writers
rainmaker wrote:
Would the stock markets be the only option for a short-term high yield investment? I have a feeling that this is the case, but I am just checking.

Thanks for any input!


This really depends. While I am no expert on investment portfolios, I do know that just like the stock market itself, your returns can go up or down. What one month might be a high-yield return could the next month turn into a monumental loss.

Unfortunately, the higher the yield, the higher the risk. The lower the risk, the safer your money is – though it will not make as much money.

One thing I would like to pose to those on this subject is the way to avoid getting taxes to death when “cashing in” on stocks, bonds, etc. I know that you can avoid being taxed as long as you continue to roll your investments, but what happens when you decide to take your earnings and retire? Is there a way to get that into a 401k, IRA, or something else where the government won’t bleed you dry?
jeffapotimus
rainmaker wrote:
Would the stock markets be the only option for a short-term high yield investment? I have a feeling that this is the case, but I am just checking.

Thanks for any input!


There are many good options in real estate if you have enough money. Short term 'hard money' lending can get you between 9% and 18% and is secured by property.

Also, you can invest in development projects and depending on which stage you come in you can recover up to 300% or more over a period of 2-4 years.
jeffapotimus
corridor_writers wrote:
One thing I would like to pose to those on this subject is the way to avoid getting taxes to death when “cashing in” on stocks, bonds, etc. I know that you can avoid being taxed as long as you continue to roll your investments, but what happens when you decide to take your earnings and retire? Is there a way to get that into a 401k, IRA, or something else where the government won’t bleed you dry?


All I can say is max out your 401k or 403b before you retire... In most situations you can 'loan' yourself the up to half money out of these accounts to purchase property, pay for education, medical bills... This is tax free and you usually pay less interest than you are earning on the money you still have in there. Any money you continue to put in goes to repaying your loan, and continues to earn.
corridor_writers
jeffapotimus wrote:
rainmaker wrote:
Would the stock markets be the only option for a short-term high yield investment? I have a feeling that this is the case, but I am just checking.

Thanks for any input!


There are many good options in real estate if you have enough money. Short term 'hard money' lending can get you between 9% and 18% and is secured by property.

Also, you can invest in development projects and depending on which stage you come in you can recover up to 300% or more over a period of 2-4 years.


I am a person who is still learning about real-estate investing. Can you clarify what you mean about "short-term hard money lending" and how it works, as well as how one would go about in investing in development projects? - Thanks!
rightcity
Quote:



FriHost rules require the use of quote tags when copying and pasting articles


The difference in the use of the term investment between the economics field and the finance field is that economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains; these assets may be physical (e.g. buildings or machinery), intangible (e.g. patents, software, goodwill), or financial (see below). Whatever the type of asset, the manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.
DevilsSon
ok, seems that this forum is worth reading even after I have posted 5 times Smile
corridor_writers
Good information - thanks. Anything more on investing in real investments? Smile
sabe
Anybody out there know of a good brokerage house to invest in mutual funds. I am looking for a place for no-load funds, so I don't have to go to each fund house and get the funds directly.

Any help would be appreciated. Laughing
assee
about the investment .. there are many options .

In real estate . u must have alot of money , As we are student and dont have enough money to invest in properties and stuff like that .
I would suggest to invest in Forex or stock

Forex gives you enough return only if you have knowledge to tackle it dont invest if you are noob or prectice the demo accounts atleast 3 months many broker companies providing it .

On other hand Stock markets are also good in investing money . same there is a risk and you cant blindly invest money without knowing anything.

Investment in a mutual fund is also a good option . Your money and companies expertise . you dont need to know anything just a basic knowledge . and only thing you need to know is the best managment compnay and best performance mutual fund. you can access it by seeing its past perfoamnce check the funds yield and how much profit it gave to the members. etc etc

Quote:
Anybody out there know of a good brokerage house to invest in mutual funds


these varry from countries to countries. You should search the web .
corridor_writers
assee wrote:
about the investment .. there are many options .

In real estate . u must have alot of money , As we are student and dont have enough money to invest in properties and stuff like that .
I would suggest to invest in Forex or stock

Forex gives you enough return only if you have knowledge to tackle it dont invest if you are noob or prectice the demo accounts atleast 3 months many broker companies providing it .

On other hand Stock markets are also good in investing money . same there is a risk and you cant blindly invest money without knowing anything.

Investment in a mutual fund is also a good option . Your money and companies expertise . you dont need to know anything just a basic knowledge . and only thing you need to know is the best managment compnay and best performance mutual fund. you can access it by seeing its past perfoamnce check the funds yield and how much profit it gave to the members. etc etc

Quote:
Anybody out there know of a good brokerage house to invest in mutual funds


these varry from countries to countries. You should search the web .


Can you define "Forex" for me? I have never heard this term before.
metronome
@corridor writers

forex actually means foreign exchange.
actually as trader or investor of forex, you try to get profit by trading currency pairs or holding a currency pairs.

forex is kinda hard for new people, beware, forex can suck your money dry in a really fast time:D.
corridor_writers
metronome wrote:
@corridor writers

forex actually means foreign exchange.
actually as trader or investor of forex, you try to get profit by trading currency pairs or holding a currency pairs.

forex is kinda hard for new people, beware, forex can suck your money dry in a really fast time:D.


Thank you! This is something I have never looked into or even considered. I will do some more research on it. Do you have any suggested reading on the topic?
milkwnstarrie
Hi, I'm also new to this and I've recently been thinking about putting my savings to better use than leaving it lying idle in the bank with less than 1% interest... my money's shrinking. Can someone please explain to me what mutual funds, trust funds, unit trusts and hedge funds are? They're really confusing me and I don't seem to know where to start.

Anybody has a good recommendation of books to read up to learn how to invest? Thanks in advance!
smasha
My website is www.fxprices.net it has daily Forex news that you might be interested in.
Related topics
Microsoft makes mobile move
News Corp to buy MySpace.com owner for $580 million
HELLO EVERYBODY A WARM WELCOME TO COLOMBIA
What would you do with your life if you can live forever ?
How to become a millionaire on the internet?
AMD, China Ink x86 Agreement
Not Voting is Reasonable for People Who Want Freedom
Is New Orleans worth rebuilding?
Established Media Company Looking for Investors
The rotting flesh that is our political system
Online jobs
Home-Made Business or External Investments?
Investments that could survive US economy failure...
Where are your investments ?
Reply to topic    Frihost Forum Index -> Lifestyle and News -> Economics and Marketing

FRIHOST HOME | FAQ | TOS | ABOUT US | CONTACT US | SITE MAP
© 2005-2011 Frihost, forums powered by phpBB.