If you had a significant amount of money to invest, how would you invest it?

[La Lioness Priyanka]

assume that you have no risk tolerance.

[LeftyFingerPop]

1. No risk tolerance...

I would go CD's or T-Bills.

[Deep13]

3. Just what I was thinking. nt

[Wcross]

12. Good way to lock in losses.

What are Cd's paying right now? What is the TRUE rate of inflation (not what they are claiming it is)? After you pay taxes on your "gains" you will have a negative rate of return.

[LeftyFingerPop]

13. The trick is to protect your money...

better a small loss due to inflationary factors than a huge loss due to market swings...especially if you may lose some sleep over it.

Just my opinion.

[MissMillie]

2. I would call my cousin who knows about such things

and ask her to advise me.

I have no knowledge of investiment options, let alone which ones are was choices.

[LeftyFingerPop]

4. But then this further begs the question...

if this is your money, or the money of someone close to your age, why do you have no risk tolerance?

Will you need the money in a relatively short time period?

Are you afraid of financial risk?

Are you more interested in "protecting" the money, rather than investing it?

Can you tolerate at least some risk, with the corresponding potential of a greater reward, with SOME of the money?

Just some things to think about....a good financial adviser will ask you these types of questions. If you do utilize an adviser, look for a fee only adviser, who has no vested interest in selling you any financial products.

Good luck.

[ThomCat]

31. The way we seem to be headed towards some serious

economic "adjustments," and the way those adjustments disproportionately hit small investors, I have no tolerance for risk right now either. In a couple of days, at some random time, you're very likely to loose a hell of a lot.

[RebelOne]

5. I would invest in gold or real estate.

[LeftyFingerPop]

7. There is a problem with real estate right now...

Because of the sub-prime issue, no one really knows what any real property is worth anymore. This is what is causing the problems.

It may be a good time to jump into real estate right now because of this...but I would avoid it until things settle.

My opinion only.

Have a nice day. :hi:

[Phillycat]

8. Exactly right.

Real Estate might as well be called Russian Roulette right now.

[Gormy Cuss]

45. The risk is manageable if you understand the local market and are investing for 5-10 year periods.

If the area has long term stability with modest to moderate increases in value, is not in an economy dominated by a single industry et cetera investing in average properties in solid neighborhoods is still a pretty good risk. Now is not the time to buy new construction units far from urban business centers. It's not the time to buy the best house on the block (mostly likely to have the biggest risk of devalue)nor the worst house unless one has experience with renovations for investment properties.

However, if one doesn't possess the knowledge to assess the properties in such a way it's probably best to stay out of real estate for another year or two.

My opinion, probably worth about the same as yours.:hi:

[av8rdave]

48. Real Estate actually isn't that risky...IF you do the right thing with it

It's a great time to get property below market value (you make your money in real estate when you buy). However, it's a terrible time to try to "quick turn" it for a profit, as who knows how much lower the market may go. However, there is a growing tenant population out there as people lose/sell below market their homes. If you can handle holding it (rent/lease/lease option) it for a few years, you'll probably do well.

My opinion...probably not worth much.

[muriel_volestrangler]

30. Gold is one of the riskiest investments there is

the price is incredibly volatile. It's not at all suitable for someone with 'no risk tolerance'.

[Phillycat]

6. At the moment? Under the mattress.

Shit's crazy out there right now.

[LeftyFingerPop]

20. Not a bad idea!! n/t

[IndianaJones]

9. cryogenics....or check out Weyland Yutani Corp. nt.

[LeftyFingerPop]

10. It may be...

irresponsible to suggest specific sectors, and especially specific stocks in this forum without recommending that people perform due dilligence and also stating why you believe a particular stock should be examined.

Just sayin'.

[IndianaJones]

11. well, Weyland Yutani is building better worlds. I think we...

all would agree that that is a noble endeavor.

[cobalt1999]

14. Gold.

The US currency still has an inflation issue, and if the housing market/lender issues drive us into a recession, we may be back to the late 70's early 80's stagflation.

Gold is safe and probably not a bad bet now-a-days.

[LeftyFingerPop]

17. I tend to lean that way also....

but there is still some risk.

[muriel_volestrangler]

34. Gold is a very high risk option

Check the price of gold versus almost anything else (like, for instance, the price of food, or a non-skilled wage) and you'll see it varies a huge amount. It's probably the riskiest thing a normal investor could choose.

[cobalt1999]

36. Like any investment it depends on the conditions prevailing at the time

In the last Stagflation period (1979-81), gold was the place to be as the US currency devalued.

Gold in the late 90's wasn't, but now we may be facing the same set of conditions as before.

[muriel_volestrangler]

44. Which proves how risky it is

there are only certain times when it's OK as an investment. For much of the past 30 years, gold was declining v. the US dollar. You'd have to time the investment very carefully for it to be profitable.

[Wcross]

15. Gold.

I would sit on gold until this whole mess sorts itself out.

[DarkTirade]

16. If I had money to invest...

I'd start my own business.
But that's just me. :)

P.S.- Anybody have money they want to invest? :P I've got a few ideas...

[pitohui]

47. that is a terrible suggestion for lack of risk tolerance and here is why

much over 40 you can't get private health insurance or it's v. expensive in many, many states

a person w. no risk tolerance, even w. significant assets, should hold their job for the health insurance -- no real time to put into a business venture if you are risk averse

once you are medicare age putting the $$$ in your own business and quitting the job is okay

[DarkTirade]

49. I was asked what I would do. And that's what I would do.

[pitohui]

51. you were asked what to do if NO RISK TOLERANCE

that is a very different question

[DarkTirade]

53. The only risk you mentioned was health insurance.

A) Lots of people don't get health insurance from their jobs and B) I never said 'quit your job and start a business'. There are plenty of businesses that can be done on the side or part-time.

[Dragonbreathp9d]

18. land

even though I dont really believe in private ownership of land, I think that would be a great invetsment

[LeftyFingerPop]

Land involves mortgages...

goes back to the sub-prime issue. Unknown value of real estate...very risky.

[Dragonbreathp9d]

21. true, but I'd buy a lot of land out in Pecos, NM

Beautiful land 45 minutes from Santa Fe. Even if it went down in value, I'd still love it

[LeftyFingerPop]

22. Now, there is a good reason to buy land...

for the enjoyment of it!

:hi:

[Dragonbreathp9d]

24. Yeah, I guess I should have clarified my original post

I'd love to have sprawling forests and streams and mountains to just leave untouched other than my treks through them. *sigh* Money can buy some happiness...

[dropkickpa]

19. Boutique cheese

Everyone loves cheese, even the lactose intolerant!!

Seriously, I have no clue, I suck at saving and growing money. Though I am very glad I opted to go for the pension plan through my work right now, as everyone's 401K's are sucking BIG right now.

[leftofthedial]

23. ammo

and stockpiles of good whiskey

[Wcross]

26. Don't forget a stockpile of food too!

I don't know if it is going to get that bad but if it does you're gonna want to eat too!

[ejbrush]

52. Smokes.

Stockpile about 100 cartons of Marlboros (vacuum sealed for freshness). After the shit hits the fan, there'll be a lot of people jonesin and willing to negotiate.

[La Lioness Priyanka]

25. sorry, forgot to add, this amount is significant to me, may not be for other people

[Wcross]

27. If its over 20 bucks it's significant to me! n/t

[LeftyFingerPop]

28. If it is significant to you...

then it is significant.

In today's world, any amount is significant...work as hard to protect and grow it as you would with several million dollars. :)

edit spelling

[flvegan]

29. REOs

Very specific REOs, especially if I can get them through a bankruptcy trustee of one of the recent collapsed lenders.

That, or high dollar real estate, or real estate is specific markets.

[DU GrovelBot]

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[ThomCat]

33. Now that is an appropriate response!

:rofl:

[ZombieNixon]

40. For once GrovelBot actually answered the question!

:applause: :P

[La Lioness Priyanka]

41. hey, i donated a couple months ago.

ask someone with real money

[philosophie_en_rose]

35. Long term or short term?

Short term - CD with my credit union.

Long term - maximize the IRA contribution, then mutual funds.

[Common Sense Party]

37. There is no such thing as a risk-free investment.

So, if you have "no risk tolerance" you should just spend the money and live it up.

[guitar man]

38. lap dances

and g-strings :P

[skygazer]

39. I would bring back hanging and go into rope

[qnr]

42. Scratch off lottery tickets. And then, I'd stand

in a golf course, under a tree, near a trailer park to scratch them all off. Just to see whether I'd get struck by lightning, a falling aircraft or a tornado before I actually made any money.

[necso]

43. Chocolate. /nt

[pitohui]

46. for truly no risk tolerance here's what i would do

gold is a crazy bad investment if you have zero risk tolerance, so let's get that out of the way right now

most important would be a paid off home in an area not likely to be threatened by rising property taxes or huge insurance increases (most likely would need to be away from a flood plain)

CD ladders work well to provide predictable short term income w. out risk

as most people w. "significant" assets do not really have "zero" risk tolerance, the remainder could be in a decent mix of mutual funds, maybe some foreign mutual funds, bonds or bond funds

gold is already very high so it's pretty much out at this point, you never want to be the person last to buy into the fad investment

time to buy gold was when * was placed in power by the supremes, time to buy euro was when they were first introduced

[slutticus]

50. Pork Bellies

mmmmmmmmmmmmmmmmmmm......

[enigmatic]

54. Radio Enigma!

:D

[krispos42]

55. A Republican congressman

Look at them! They stay bought even after getting spanked HARD in an election! It's incredible!