How do you invest your money?

I have a personal IRA, some stocks, mutual funds, and a gambling addiction.

I dunno about that, bud. If you want to diversify, just invest in an index.

Also, an MBA means jack **** in the world of investment banking and finance. Even if it's from Harvard.

Well, I'm also pursuing for MBA and no teacher yet taught me this lol

Honestly- It is good that you invest a % of your earnings but not 5% at many places. To make things clear and valuable take some time to research where you are investing your money ! Seek for best and secure options because In my personal view Stock Marketin is not a good place if you dont know much about it !

But you can start multiple business or the best one could you become investor in other peoples project. This is the best method you can work on and make decent money by just investing in peoples project !

PS:A wrong decision can change the situation's !

Regards
~Sam~

I have stocks, a savings account, virtual real estate with my sites, actual real estate and a retirement fund.

Diversifying is key.

Yeah putting 5% of your net worth in 20 different investments is good, but a lot of work managing 20 different investments. If you're doing stocks don't invest more than 5% to 10% in a certain stock, but the stock market is crazy stressful.

If you have have 100k or so, buy a newer house in Texas or Oklahoma near a big city (or another state with less-expensive houses with high rental demand) and rent it out with the help of a Property Manager. You'll have a mortgage of about 1k, and you can rent it out for about 1k. With tax breaks, and with home value appreciation over the long run, you'll make much more than putting your money in a 1% CD.

Diversifying is indeed the key to maintaining healthy returns on investment. I would recommend making a variable life insurance policy a part of that diversified portfolio. If you don't already have life insurance coverage on yourself, this is a great combination of investment and life insurance coverage which will separate the amount you pay to protect yourself from your investment component, which will generate a cash-value at the end of your term and a guaranteed death benefit as well.


Denise Mancini
Disclaimer: I work for AccuQuote and this is my personal opinion.

It has been said that diversification is a protection against ignorance.

There's more profit to be made from one system you really understand, test and perfect, than from 10 systems you don't really understand and take other people's advice.

On the other hand, there is a lot of synergy to be gained from learning different, but related systems, such as different IM systems. Instead of wondering why what you're doing isn't working, ask advice, do the best you can, then try some different systems, because you'll almost certainly learn something relevant from each one, until you build up enough overall knowledge and ability to make one system work well, then other systems work well too.

You can start out treating IM as an investment rather than a business or a job. For example, only consider systems that can be fully outsourced and/or automated. Consider leverage and ROI over time, before you start out with any IM system.

With a bit of work, you can make better returns from IM than any passive investment system, but it takes more work.

With IM, it is possible to start off entirely for free, and make money before you spend any. That offers a different route than investments which need money, however, with IM, you'll have to put some time and effort into learning, else you'll probably make a loss. IM has more potential than most forms of investment, but requires more knowledge and ability.

Chris

Interesting. Did your friend from Harvard discuss diversification, risk tolerance, time horizon, asset protection, tax-advantaged investing, how to deal with probate or avoid it, etc.? There is no "best" way for anybody since financial planning is not a cookie cutter endeavor, neither is investing which is a small subset of financial planning because there are so many different ways to invest.

There are thousands of more investment vehicles today than there were ten years ago. There are so many of them I have to refer to my own financial experts to learn more about them.

In my former life I was a personal and business financial planner, so I do have a background in this. Degrees don't impress me, only results do. Now if your friend consistently gets solid returns from their investments over a long period of time, that would be more impressive to me than what they studied.

The 5% premise sounds okay to me, but it's definitely not a "best way" scenario as everybody has different financial needs, investment goals, etc. Also, I don't think weighting investments evenly at 5% is a good idea. A lot of it has to do with the level of risk you're taking with each specific investment.

Take my own portfolio of investments as an example, I would never advise people to invest the way I do without knowing a lot more about them and their financial situation, their financial knowledge, how much debt they have, their culture, their value and belief systems, how much they want to donate to charity, etc.

I invest my money in a wide variety of things: real estate, the stock market, currencies, partnerships, intellectual property, IPOs, and, of course, online businesses and it's done in such a way where I own nothing but I control everything (this is where corporations, LLCs, and trusts come in).

IMO, I think everyone should at least study the basics of financial planning, investing, and asset protection before they start moving their money from cash to something else.

RoD

Hi

5% is too less to invest into business. It all depends on the business in which you I am investing. If I see a particular business is giving good returns, I wouldn't mind investing everything into it. But to be cautious I would invest 25% into some other profitable business.

Anyway I own two businesses and I have invested 75% of my capital in one and 25% in one

silver bullion and strip clubs.

The latter is not only more fun, but gets me in lots of trouble.

I also get dirty looks when I wear my "I support single moms" TSHIRT!

That makes sense for managing $200,000 (20 x 10,000 investments), but it makes NO sense for managing $1,000 (20 x 50 investments). The transaction cost alone would eat up several years of return.

The number 20 (5%) comes from "Modern Portfolio Theory" and Markowitz.

It represents the number of securities needed to remove individual security risk from a portfolio. You're still left with "market risk", for example 20 US tech stocks vs 20 US large caps, vs 20 stocks from around the world, vs 20 "not all stocks", etc.

For example owning 20 different residential rental properties only represents diversification of tenants... you are still 100% exposed to general real estate market value risk (capital value) and also to the rental market risk (return on investment). In many ways you'd be better served having one commercial tenant with a 30 year commercial lease than having 20 residential tenants with one year leases, which sounds like the opposite of diversification but isn't really.

And if you turn the cash flow into debt service for tax reasons (usually trying to get 15% capital gains rather than 50% percent rental income) you become very leveraged, and market events like 2007 can destroy huge amounts of capital (and when banks force liquidations you lose the assets you need to ride the recovery) , or even wipe you out completely.

Invest 90% precious metals for when the western economies collapse and hold 10% cash to buy day to day items.

INFLATION IS COMING !!!

Invest in some land and grow food..

Paper assets are only for insider, if you are on the outside - high chance you're gonna be killed. It will be good if you can start investing a little in commodities such as gold, silver, oil.. Invest in REAL money instead of paper.

Damn right, inflation is coming - those who saved dollars are the loser at the end of the day. The more gold & silver price drop, the more I wanna buy now

IM in my opinion can be another great investment. No matter how bad the market is, IM is NOT going to get affected badly, if there is - I reckon it should only be a little. IM 'shares' drop only when google does some funny updates Google is basically controlling the trend of IM..

Get ready for the next big wave If USA falls, the world follows.. let's pray that Obama and the Federal does a great job..

God bless you,
Jeremiah

Im more of Warren Buffets way of thinking.

"Put all your eggs in one basket and then watch that basket carefully" Warren Buffet

I have 80%of my cash in Gold and Silver and I invest
heavily in my business each month.

.

General rule, 10% of total alotted in any one thing. So if I have $100K for stock options, only 10% of that in the market at any time.

However, I have broken my "general rule" many times over my lifetime to some extraordinary gains and for some severe losses, too. I think it is my risk taking that makes me an entrepreneur.

Curious? How long has your friend been out of college and has he/she ever been fully supported by their own company?

The reason I ask is because I believe that entrepreneurs think a bit differently then most people.

I my thoughts, investing 100% in a stable and proven investment is better than 20 five percent investments that are speculative.

There are too many variables.

MBA from Harvard... lol.

Seriously, Pareto law or the 80-20 law... is pretty much on the spot!

Yes, if you do stocks... maybe 5% is not a bad thing, but anybody doing stocks is playing casino anyway, so you will probably lose everything once it crashes again.

80% of my income is from the same place... my rule of thumb is to have 3 different sources of revenues. Each one can have a lot of "portfolio" diversification.

ie: PPC, Banner Promotion, Social Networks, Real Estate, etc.

You have many PPC campaigns, a few banners, you use FB, Twitter and have 3-4 different real estate rentals.

Is this strategy working well? sometimes I do believe not believe in theories but on how dynamic your mind is to allocate the money you have

I invest at least 50% of my income. . Always building up my portfolio..

Here's my breakdown:

1) 0% in stock, mutual funds, bonds etc (going to small caps soon)

2) 40% in business (mainly IM now)

3) 40% in gold, silver, oil, green energy etc (commodities)

4) 20% save.. (looking for other opportunities)

I've made lots of mistakes, even though I've invested 50% of my income but the money doesn't always seems to come back (especially in Business IM).. Good news is, I tend to learn from my mistakes and now things are slowly getting better and better.. praise the Lord!

I don't recommend everyone to invest 50% of their income. especially when you already have family/kids to feed..

God bless,
Jeremiah

i was invest my money on domain and hosting and for for buliding my website i was totally hard work for it with smart strategy.everything goes up and down but never give up until i find a simple ways.

How do I invest my money?

Wisely!

And with a lot of research.

Cashflow and Appreciation from Real Estate, Dividends from Stocks/Businesses.

When gold was just starting to rise I was just started to learn about it, doing some research. So I didn't invest in gold or silver. Mostly because I didn't understand the fundamentals, why it was rising.

and I am not one to invest in something just because the price is going up, especially when I don't understand it. And definately not because a bunch of strangers on the internet say it's a sure thing, lol

But Real Estate and Business I do understand.

Dividends I do understand.

So I invest in those.

Gold and Silver I will in the future.

Oil I am just learning about now.

And I would love to own a Casino or two.

I took my life's savings last week ( about $82,000 ) flew to Vegas, and put it all on black.

I invest it in paying my mortgage off earlier.

Max out of annual IRA contribution.
Then various funds if any is left. Bonds can give good returns.

This may not be wise.

Returns on good investments can easily exceed the % owed for the mortgage, especially in recent years with their meager 3-5% interest rates. Investments, on the other hands, have had 10%+ returns lately.

I started buying .com's in 1998 and have not stopped since. There is no bigger return on investment that I know of, if you do it right. Do it wrong and you can waste some serious money seriously quickly.

For every dollar I've spent on domain investing, I'd conservatively say I've made back $15.

I invest in gold, cause in future it will safe my money and life!

Ummm this thread is from 2011, its as OLD as dem HILLS! :-0

I prefer a barbell strategy. It is split between ultra safe and highly speculative with nothing in the middle.

90% - 95% of funds go into the safest investments as possible with an aim to just maintain your assets after inflation. The other 5% - 10% goes into highly speculative ideas that would pay off big time should the circumstances that trigger that investment occurs.

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