how do you invest your money in long run ?

[fresh]

simple Q: how do you invest your money in long run ?

 

hope to share you experience.

 

[iNow]

Patiently

Also, consistently.

[fresh]

Patiently

Also, consistently.

 

on what ? stock ? government bonds ? houses ?

[swansont]

Individual stocks, as well as index funds. But for the former, I take the time to do my homework.

 

Save something each month.

[fresh]

Individual stocks, as well as index funds. But for the former, I take the time to do my homework.

 

Save something each month.

 

what is the individual stocks different from common stocks ? can u access to preference stocks ?

I once lost 70% on my stock.

Edited April 23, 2015 by fresh

[swansont]

what is the individual stocks different from common stocks ? can u access to preference stocks ?

I once lost 70% on my stock.

Common stocks. I was differentiating between individual securities and the index funds (or managed mutual funds that some people buy). The US governments equivalent of a 401(k) plan (known as the Thrift Savings Program) lets you buy into a few different kind of index funds, but no individual securities.

[Sensei]

 

I once lost 70% on my stock.

 

Did you set stop-loss?

 

Are you observing stock markets on-line real-time.. ? Probably not.

[fresh]

buying stocks is so risky. do u have other less risky investments ?

[zapatos]

buying stocks is so risky. do u have other less risky investments ?

Savings Bonds, Savings Accounts, Treasuries, CDs, Money Market Funds, Corporate Bonds, Dividend Paying Stocks.

 

And don't forget there are many types of risks. For example, a lower investment risk also means a lower return, which increases your risk that inflation will deplete your wealth.

[swansont]

buying stocks is so risky. do u have other less risky investments ?

 

Diversification mitigates risk, but your mileage may vary. Everybody will have a different risk tolerance. Most investment advice says to have some low-risk investments but some higher-risk, because (as zapatos has pointed out), risk and return tend to correlate.

 

I recall a colleague who went to a retirement seminar some years back. It was pointed out that our retirement system has an annuity component (i.e. a defined benefits plan) and that is basically zero-risk. Meaning personal investments could be riskier, because the low-risk part of the retirement was already in place.

[fresh]

is it 10% annual return considered quite ok ? government bonds normally have 3.5%-5% annual return, which is considered a very low return.

[Nouveau]

In the long term art, classic cars, antiques and even real estate regularly outperforms the stock exchange but it does require at least some knowledge or skill in choosing the right investments to achieve the very highest returns.

 

You should remember that your ROI should always be proportional to the level of risk that your investments carry. For a low risk investment where you can be very confident in the long term safety of your money then a 10% annual return may be considered adequate. You have to make very sure that when you are checking the potential returns for differing investments that you are also taking note of and factoring in the level of risk for each so that you can then be confident in actually comparing like for like.

[zapatos]

A 10% return is outstanding. If you can manage a sustained 10% annual return on investments you can be one of the highest paid financiers on Wall Street.

[fresh]

A 10% return is outstanding. If you can manage a sustained 10% annual return on investments you can be one of the highest paid financiers on Wall Street.

Only achieving annual 10% return is labelled as kick-ass financier on wall street ?

i think it is too low. they can at least get 20 or even 30% !

Edited April 25, 2015 by fresh

[swansont]

Only achieving annual 10% return is labelled as kick-ass financier on wall street ?

i think it is too low. they can at least get 20 or even 30% !

 

Who does this on a consistent basis?

 

Top mutual funds, which may do much better in any one year or short span of time, return just over 10% a year over the long run.

http://www.kiplinger.com/tool/investing/T041-S001-top-performing-mutual-funds/index.php

[Sensei]

buying stocks is so risky. do u have other less risky investments ?

 

Invest in knowledge. Education. Wisdom.

 

Not necessarily by going to college to get another PhD.

A 10% return is outstanding. If you can manage a sustained 10% annual return on investments you can be one of the highest paid financiers on Wall Street.

 

10% I can have in a day. And next day, if I am greedy and not sell, it's -10%..

And if I sell, the next day is another +10%, and I am pissed off.

Once there was 300% the next day after I bought stocks..

As always in such cases, bankrupted company, after collapse, and resurrection.

I even wrote application which is informing me which companies bankrupted and tell instantly on PC with sound alarms etc.

Then there is needed constant observation what happens with such company.

If there is info about resurrection (deal with creditors, typically exchange of debts for stocks and/or interception by them whole company), then "buy any price" instantly is needed ASAP.

Some use bankrupted company as a way to cheap enter stock market system. One IT company bankrupted here, other one, not listed, bought it, and price went 2500% now..

Who bought stocks of this bankrupt at lowest price is now very happy.

 

Really, if you would start with 1000 usd at year "zero". After 50 years, 10% year by year, accumulative, you would have just 97k.

If somebody has no other job except stock markets, it's not even possible to reach million in typical human lifetime.

 

The problem is with large money: if serious investor has millions of shares, any his/her movement sell or buy causes large drop/increase of price.. Exiting of large shareholder must be wise.

Small investor can simply press "sell any price", and his couple thousands shares is gone, and nothing bad happens to price of stock..

Large investor can't do that. Can't invest serious money in bankrupting companies and getting couple hundred percent revenue.

Brokers have restrictions also. Getting seriously into company that has trash score, could lead them to unemployed state.

Edited April 25, 2015 by Sensei

[John Cuthber]

 

Who does this on a consistent basis?

 

Top mutual funds, which may do much better in any one year or short span of time, return just over 10% a year over the long run.

http://www.kiplinger.com/tool/investing/T041-S001-top-performing-mutual-funds/index.php

Actually there is an answer to that, but it's just about the last thing that most capital investors think about.

Investment in workplace health and safety often brings an exceptionally good return.

This example actually calculates the ROI as near 50%.

http://www.irbnet.de/daten/iconda/CIB_DC24348.pdf

 

Similarly, most of the case studies here indicate a payback time of less than 4 years indicating a return of very roughly 25% or better.

https://osha.europa.eu/en/publications/reports/the-business-case-for-safety-and-health-cost-benefit-analyses-of-interventions-in-small-and-medium-sized-enterprises

Edited April 26, 2015 by John Cuthber

[swansont]

Actually there is an answer to that, but it's just about the last thing that most capital investors think about.

Investment in workplace health and safety often brings an exceptionally good return.

This example actually calculates the ROI as near 50%.

http://www.irbnet.de/daten/iconda/CIB_DC24348.pdf

 

Similarly, most of the case studies here indicate a payback time of less than 4 years indicating a return of very roughly 25% or better.

https://osha.europa.eu/en/publications/reports/the-business-case-for-safety-and-health-cost-benefit-analyses-of-interventions-in-small-and-medium-sized-enterprises

 

That's not an investment generally available to you unless you already own a business, though. (Not that someone probably hasn't tried to securitize it)

[Endy0816]

^Yeah, that was what I was thinking. You more typically give the company a loan(in one form or another) and then they invest that money, and give you your cut afterwards.

 

Besides all the standard investment strategies, I work to turn my spending into savings, via use of credit.

 

Typically 2-5% in the form of cash back or miles, plus whatever you can earn in interest over a month. Less typically there are special deals and promotional offers which can boost that to 100% of one time spend and/or increase the time you have to earn interest on your money out 6-18 months.

 

Only caveat is that you must spend normally and pay the bill when it comes due.

Edited April 26, 2015 by Endy0816

[swansont]

^Yeah, that was what I was thinking. You more typically give the company a loan(in one form or another) and then they invest that money, and give you your cut afterwards.

 

Besides all the standard investment strategies, I work to turn my spending into savings, via use of credit.

 

Typically 2-5% in the form of cash back or miles, plus whatever you can earn in interest over a month. Less typically there are special deals and promotional offers which can boost that to 100% of one time spend and/or increase the time you have to earn interest on your money out 6-18 months.

 

Only caveat is that you must spend normally and pay the bill when it comes due.

 

I'd argue that that is being frugal, or efficient, rather than investing. A step to decrease the amount of money you spend, because use of credit as you describe involves spending money. There are ways to use leverage for investing, but investing is what you do with that money, rather than getting cash back for using your credit card. Do you put it in a mattress, a savings account, CDs, the stock market, bonds, or do you collect beanie babies or baseball cards, etc.?

[Endy0816]

You are investing your time and taking on some risk, namely in terms of the dollar's future value and your ability to repay timely.

 

Boils down to 'inflation = good' and 'know thyself'.

 

You can also make the time investment quite reasonable. Research and apply for card. Set up auto-pay full balance(when not interest free) and use a decent service like Mint to review all your transactions in one location.

 

You do have to spend money to see the advantages, but you are always going to spend money in the normal course of things. Not going to make you rich, but in the long run you will be better off. There are issues with attempting to compound spending and spending money more than twice, but really that is to be expected.

 

On the standard investment front I use or have used: an indexed fund, treasuries, online savings, CD's, money market accounts. Really depends on what you want out of your investment. My own ideal would include the gamut along with a share of a small business and property. Ideally you want something you can be invested in personally and where there is a magnification effect on the time you put into them.

Edited April 27, 2015 by Endy0816

[fresh]

who once bought and sold gold and made a good profit from it ?

[iNow]

If you were going to buy gold, you should have done that about 8-10 years ago. As of today, that bubble seems to be bursting, IMO.

 

http://www.nasdaq.com/markets/gold.aspx?timeframe=10y

[Nouveau]

Just a quick thought here, if you fancy an investment that is a bit on the wild side, adventerous and something you could have a little fun with. Then how about a vintage Aston Martin. Prices have skyrocketed over the last couple of years and now all pre-1989 models are starting to go up in price. With DB5's and DB6's now changing hands at over three quarters of a million dollars it shows there is still some real scope for some of the later V8's and DBS models, these models are still fairly easy to find, to head towards the quarter million mark over the next couple of years. This one might be a bit of a gamble, but surely a calculated risk based around current trends, and if nothing else you'll end up with something beautiful.

Edited May 12, 2015 by Nouveau

[iNow]

cars, art, and real estate do seem to be decent choices if you choose well enough when making the acquisition.