How should I invest 50K?

Question

I am 24 and have absolutely no experiences with investing.
After payaing off student loan and cost of living/expenses, I will have about 50K earning/saving by Dec 2009.

So I plan to distrubute them in the following wayL

401K --> 16.5K (I contribute the max allowed)

CDK --> 20K (I will use this for future house buying)

Roth IRA --> 5K (Will open with Vanguard or Fidelity, likely to do with Vanguard Retirement 2050 Fund)

Scottrade --> 7K (I buy stocks from about 10 companies I like or know GE, Boeing, BOA, Citigroup, Macys, etc)

Savings --> 2 K for emergency/extra spending

I plan to buy a house in like 4-6 years.


Please help me and give me suggestions. I am not sure if I am making the right choices or not

Answer 1

That sounds like a great plan!



Since you gave us a plan instead of asking a general question like "How should I invest $50k?" it sounds you're willing to learn things yourself pretty quickly, good job!



I wouldn't change a lot of what your plan is, other than maybe beefing up your savings account with a little more dough just in case. Also, be careful about your stock choices once you open up a trading account. Don't give into temptation, greediness, or become a day trader.



Other than that, you're good to go buddy. If you want, you might want to invest time into learning how to be a better investor..like, real estate, stocks, business, or bonds, etc.



Good Luck.

Answer 2

Just what I would do,,Your Answer:



Unless its ag land, Stay away from all RE for at least 3 yrs.



Right now,1800hrs 09/07/09 Silver is far an away the best investment. Gold a close second. Intermedet term Nat. Gas. Long term Copper. As of now Short all stocks exept mining issues.Go long QID,SRS, Short KBE.

And consider long MMG.amex. This could double in a few weeks. Buy China?? I just want my money back,,



IMHO, Silver will be over $20 on Jan. 1 2010 $16 as we speak. Please bookmark that statement.



jclbiz

Source(s):

35 yrs exp.

Answer 3

Jeff410 gave you an excellent suggestion but for some odd reason failed to suggest a few. Here they are. T Rowe Price Capital Appreciation Fund Bruce Fund Oakmark Equity and Income. These 3 are among the best of the best. Why not put 10k in each and the rest in a money market account just in case the market continues to disintegrate. A distinct possibility.

Answer 4

Not to be condescending, but I'm assuming you're not very financially minded either. By this I mean having a deep understanding of interest rates and making the best possible decisions/moves with your money to maximize your returns and minimize your expenses.



This is quite a nice chunk of change to be having in your early 20's, and it's definitely a great start to being financially stable and getting the finer things in life sooner than later. If I were you I would talk to a financial planner and try to come up with the best game plan for your success.



I'm assuming you've put together this plan based on what others have told you has worked for them, or worse yet, by watching Suze Orman. It's not horrible. But it's not great. You could be costing yourself lots of money in wasted opportunity costs. Especially by paying off your student loan first! It's one of the cheapest loans you can get, it isn't wise to pay it off early.



Get a consultation. Most of them are free.

Answer 5

Invest in Advanced Cell Technology ( ACTC ) without a shadow of a doubt. They are the pioneers of stem cells and are really close to file the forms to get FDA approval for human trials ( cure for blindness and vision loss ). They are position to rise 800% or more by the end of the year.

Answer 6

house first get a foundation and then start investing. Practise with small amounts make profit (persentages) then move on from there. Learn the lessons first then go big when you have acouple of years experience

Answer 7

I could see your investment plan is good and straight.

Keep watching business new around, you will get to learn more and more about various investment options in stock realted market.



All the best

Answer 8

what if your money made you 5 - 20% per month

with no risk at all,what if you dont need to work and just enjoy life

what if you can watch your wealth growing while you are having fun

search for myfxfunds in the google/yahoo search engine.