Help an investing noob invest 50k

joes28 · #1 08-01-2005, 06:44 PM

Ive made about 80k this summer 4 tabling 30/60, and am looking to invest about 50k in something long term. Can anyone give me some advice on what I should invest in? I was thinking of something like an index fund or something like that, but I really dont know what I am doing. So, can someone tell me what to invest in, as well as how to go about doing that.

handsome · #2 08-01-2005, 07:00 PM

Buy a house maybe. Fatwallet has a good "How can I invest $X?" thread in their Finance forum.

gabbahh · #3 08-01-2005, 07:22 PM

This is really long term..
Diamonds and other precious gems. Alrealy it is becoming more and more dificult to extract them from mother Earth. In 20 or 30 years most mines will be depleted...
Property on the coastline of India. India is becoming more and more wealthy, and those people also like to go to the beaches. The price of property is still really low (about 1 dollar for a square yard).

Sniper · #4 08-01-2005, 09:41 PM

If you dont know what you are doing, and dont want to put in the time to learn, then just stick your money in an index fund for the long term.

LondonBroil · #5 08-01-2005, 10:40 PM

Don't forget to set aside 15K for taxes.

ewile · #6 08-01-2005, 11:08 PM

Do the folowing:
Begin buying Investors Business Daily every day. Read and absorb as much as possible each day.

To suppliment read O'Neil's How To Make Money In Stocks (He's the founder of IBD)

Next buy and read Stan Weinstein's Profiting in Bull and Bear Markets. You now have read enough to have a "plan"

Now get How I Made $2,000,000 in Stocks by Darvas. This is a great, great book and will teach you the importance of sticking to your plan.

You will see how well these 3 books compliment each other to give you a comprehensive investing plan in up and down markets.

snowbank · #7 08-02-2005, 12:33 AM

The returns on real estate compared to almost anything else is not even close.

MrMon · #8 08-02-2005, 03:38 AM

[ QUOTE ]
This is really long term..
Diamonds and other precious gems. Alrealy it is becoming more and more dificult to extract them from mother Earth. In 20 or 30 years most mines will be depleted...
Property on the coastline of India. India is becoming more and more wealthy, and those people also like to go to the beaches. The price of property is still really low (about 1 dollar for a square yard).

[/ QUOTE ]

Diamonds are quite possibly the worst possible investment out there. One needs only understand the history behind DeBeers and the Central Selling Organization to understand how completely artificial the diamond market is. With the possibly exception of colored diamonds and large, flawless stones, diamonds as an investment are a joke. Buy them for love, for romance, but never as an investment.

morello · #9 08-02-2005, 11:45 AM

[ QUOTE ]
This is really long term..
Diamonds and other precious gems. Alrealy it is becoming more and more dificult to extract them from mother Earth. In 20 or 30 years most mines will be depleted...
Property on the coastline of India. India is becoming more and more wealthy, and those people also like to go to the beaches. The price of property is still really low (about 1 dollar for a square yard).

[/ QUOTE ]

Diamonds (and other "precious" gems) are becoming easier and easier to be manufactured by humans. So it's not like the world supply is going to dwindle. And let's remember that the quality of manmade gems is on a near-perfect level.

imported_bingobazza · #10 08-02-2005, 03:55 PM

Theres a very good reason for low indian property prices...the property law there is archaic. Property is a good bet though with that much money. Since its gambling winnings, I would look at a buy to let, with 75-85% Loan to value, meaning you are shopping for something between $200-$330k. The surer you are, the higher you should go. Since you are in the Americas, try Buenos Aries....its dirt cheap now since the revaluaiton compared to what it was like, coupled with the depreciating dollar against the local currency you could get a double whammy in 5-10 years in dollars. Im looking for a 700k - a million dollars of this investment in 10 years, after mortgage repayment, and passive income of around 1.5 - 2.5% of the property valuation above mortgage costs....if borrowed in US. So, at 2.5% on $330K, its just under $700 a month income, maybe a little less with maintenance and fees etc. About 6-8 years to get your stake back in income.

Bingo