Invest in what?

Discussion in Retirement Plans started by Strykstar • Jul 30, 2014.

  1. Strykstar

    StrykstarActive Member

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    Let's say you are investing towards you retirement instead of simply saving up, what do you invest in?
    The most logical sense would be in something very safe like real estate but that's too expensive to get into and stocks seem too volatile and a big risk.
    What's the most reasonable investment?
     
  2. Denis Hard

    Denis HardWell-Known Member

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    Government bonds maybe. You won't earn much on your investment but at least it's a more than the interest you could earn from a savings account.

    Most other investments demand that you take risks. If you buy shares in a company for example, you could either earn some good returns on your investment or watch your investment fizzle out should the value of that company plummet.
     
  3. Strykstar

    StrykstarActive Member

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    Huh, I'm not really sure how Government bonds work to be honest so I hadn't though of that.
    Could you give me a quick explanation? The Wikipedia page seems a bit complicated for me to understand.
     
  4. askanison

    askanisonMember

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    Invest in your 401k if your job offers it. If you are lucky and have a job where your company matches what you put into your account then put the highest amount you can

    afford for as long as you can. I would suggest you pick the moderate risk and safe risk portions and invest 50/50. If you want to invest in stocks that is a whole different

    thing and i see it somewhat like gambling with your life savings. It's up to you, but i would try the safer route.
     
  5. Athenagdlyt

    AthenagdlytActive Member

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    I've read from Robert Kiyosaki, author of Rich Dad, Poor Dad, to invest in all three, safe, moderate risk and high risk. High risks are usually for short term. Whatever you gain from it, you put in the other 'baskets' of savings. Planning as early as possible is key.
     
  6. Strykstar

    StrykstarActive Member

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    Not sure I'd be willing to gamble with my life savings by taking the high risk options, I feel in this department slow and steady wins the race so moderate and safe options seem the best choice to me.
     
  7. owesem75

    owesem75Active Member

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    All investments are risky.. even if you invest that in a business that you are passionate about.. still there are some risks.. it is how you make the decision (when it is needed) that makes the difference. I know it is difficult to trust your lifelong savings to any investment you are not sure about.. so you can start investing TIME to study personal finance first. if you think you are ready and knows a lot more.. then it would be easy for you to understand and accept the risks that goes with investing in the stock market, mutual funds, ETF, etc. Insurance is also a very good investment option for you, specially those that are linked on an investment.

    You can also try buying gold when it's cheap and sell it when the price goes expensive. The value of Gold lasts forever.

    I hope these helps... one final recommendation that is very important.. INVEST IN LEARNING ABOUT PERSONAL FINANCE - investing is part of it. Good luck!
     
  8. thenextGeek

    thenextGeekActive Member

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    I invest in mutual funds and I also have a few business start ups that I'm extremely active with. I'm a firm believer of the financial mantra to never put our eggs in just one basket that's why I always diversify my money and put them in different areas where I feel that has the best chances of increasing my money.

    I'm still young so time is still on my side which is why I take risks because this is the best time to do so. As we get older, our margin of error becomes smaller that's why we should act now while we're still young to increase or chances of becoming financially free when we retire :)
     
  9. ExpertAdvice

    ExpertAdviceActive Member

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    Hmmm, the safest investment is really Real Estate, stocks are slowwwwwww at times and so you don't want to be dependent on a company telling you when you are going to be given money. In life, it pays if you begin to think about your retirement plans from your 20's! that way, you give yourself room for thought, to experience things, and then to make the right decision!
     
  10. DrRipley

    DrRipleyExpert

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    If you are uneasy with risking your savings then I think mutual funds would be a good choice. From what I understand they are almost all fairly safe to get into and while the amount you get in return might not be huge it still would be a good enough amount. It's mostly a step above keeping your savings in a savings account in a bank as far as I know, and if I'm not mistaken you could sign up for these types of programs there.
     
  11. CoolCat

    CoolCatMember

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    There's no area that is guaranteed to be the safest; any investment can lose you money. However, investing in a diversified array of stocks and bonds has historically done pretty well. What confuses people is how to diversify. Mutual funds hold an assortment of different stocks, and that's one way to get a diversified portfolio. You really want a good mix of small, medium, and large cap stocks ("cap" relates to the size of the company) in different industries, and both domestic and foreign funds. Want to get that benefit without doing all of the legwork and research yourself? Pick a Target Date Retirement Fund. They are designed to be a little bit riskier when you are young and have time to recover if the economy dips, and get more conservative (ie safe) as you get closer to retirement when you will need to start pulling out that money.
     
  12. Onionman

    OnionmanActive Member

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    If you're taking a long-term time scale then you will get the opportunity to smooth out the risk element - i.e. if you need the money next month then you wouldn't be taking on any big risks. So think in those terms. But you've got to know your risk profile, which is a combination of your willingness and ability to take risks. That will really dictate what you should be investing in.
     
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