Investing your money ?

[CA Stu]

Seriously, the rental property angle is the way to go.
What do you do for a living? If you're self employed, buying a commercial property to house your business is a great investment. I paid rent for 14 years until I saw the light...
I wouldn't put all my eggs in one basket, though. Diversity = safety, I reckon.
Good Luck
CA Stu

[HighRoller]

Well, not to throw a wet towel on all these good ideas, but if I came into that kind of money I'd pay off my cars in full. Your car payment will fund a nice retirement account. The average car payment is 378 a month, but that same amount invested for 25 years gets you about 2 million. Stick with mutual funds, IMO and don't listen to those who say the stock market is "risky". The stock market has shown a gain in 97% of the five-year periods and never had a decline during a ten year stretch. Although people say last year was "bad", the stock market was up 22% and growth stock mutual funds went up 44%! Like someone else says, be informed before you invest and NEVER EVER buy something you don't understand, even if it's from an agent or broker.

[Mrs Luvnlife]

Originally posted by HighRoller
don't listen to those who say the stock market is "risky".
I disagree, the stock market is VERY risky, I myself have several stocks and they flucuate like crazy......you need to be in it for the long haul.

[sboater]

There is a level of risk to any and all investments. You need to make sure that you understand the risk that you are taking and that you are comfortable with that level of risk. The main thing that you need to do is sit down and decide what your investment goal is and what your time horizon is. You need to be realistic about both. Example, you can't double your money in one year if you don't want risk.
Real Estate has been suggested. Historically, real estate has done well. Especially the last few years with low interest rates. Some risks, but not all, for real estate are timing, interest rates, and liquidity. The stock market has been suggested. Historically, the stock market has done well too. Some risks for the stock market are timing and economic factors.
One suggestion was to pay off your cars. Good suggestion, especially if you need to free up cash flow now. If you have will power and you can turn around and invest your payments, then you can do well. Assuming a 10% return for 25 years (compounded monthly) on the cash flow of $378 per month (assumes you have one car), you will have about about $500,000. If you run the scenario with 2 cars, the result is about $1,000,000.
Then you have the time power of money to look at.
Instead of paying off your cars, let's say you invest the $80,000 at 10% for 25 years (compounded monthly). You will have about $964,000.
The difference between these two options is one you put the money down now and don't make any additions. The other, you have to pay $756 a month for 25 years.
The key to any investment is to either educate yourself or find someone that will help you, but not sell you. Knowledge is power.

[Mandelon]

Sounds good, but where do you go for that 10% return?
(Besides the "risky" stock market or "risky" real estate?)
I believe at 10% rate your money doubles every seven years.
Year 7 $ 50,000
Year 14 $ 100,000
Year 21 $ 200,000
Year 28 $ 400,000
Year 35 $ 800,000
Year 42 $ 1,600,000
Nice. I like the idea of paying off any high interest credit cards or car loans. It makes sense if you can't get a higher return. Being dedicated enough to make that savings payment every month would not be easy.

[Lightning]

Very good, in the industry it's called the rule of 72. Investments will double every 7 years if they have a rate of return of 10%.

[AleAlchemist]

Skrew that In these depresing times the world needs more beers. fund a brewery!
everyone drinks, and if they don't they're lying, or above and beyond liquid medication!
Give a man a beer and hell waste an hour!
Show that man how to make beer and hell waste a life time!:wink:

[HighRoller]

Let me rephrase my statement. The stock market is not risky if you follow the first rule of investing. DIVERSIFY! If you pick four different mutual funds with differing risk levels you will be well protected. And leave your money there for the long run. Day traders and people who turn over their protfolios are the ones who cry about risk. Invest in good companies(Blue Chips) and good mutual funds and you'll get your 10% return.