Thread: Poll: Which is the best investment

Originally Posted by rzage

That sounds like it was a risky situation to begin with , when I think of bonds , I think of Guaranteed CDs Like a bank issues backed by our Gov .

Ah, and what an investment those currently are. There's nothing quite like earning less than you're losing through inflation.

If you want to see any sort of decent return, you will have to assume some risk. It really is as simple as that.

All of the above, except for coins. TC

Can't beat a deal like a 401 K. You invest in a kickback for when you retire PLUS the employer adds to your investment, increasing your Portfolio each month.

Dave

until you take the huge tax bite on withdrawal.

If you have the money for it, doesn't hurt to contribute to a roth as well. Max is only $5k/year, so not like you could over contribute to it.

Originally Posted by JCB1983

Ok...

It was 2 oclock. The wind was blowing from the east. A gentleman in a 3 piece suit and an accent that of Sherlock Holmes approaches you with a briefcase. The contents consist of $500,000. He will hand over the briefcase under the stipulation that you invest in one of the following. Their was no mention of diversification. Which do you choose?

I respect Treehugger's opinion on real estate, but I would choose stocks. I think real estate has had a decent run, (farmland, etc). I do not think real estate would be bad, but I would prefer to put that money in a balanced stock portfolio.

The other HUGE aspect not talked about is when you will need this money. That changes everything, because the shorter the timeframe the more dangerous variability in returns would be.

Like others have said, there IS no "right" answer. If there ever was, the price would go up to a point where it no longer was the obvious choice. Markets have a way of arbitraging away above average opportunities.

If you're investing in a plot of land to build an estate for your family and children where if everything else goes to pot you can farm and live a comfortable life with little to no taxes, then that's your best bet.

If you're looking for the shortest way to make a lot of money, go check your horoscope or ask an ouija board. There's no way to tell. ;-)

Originally Posted by JCB1983

In your opinion which investment option offers the highest returns with the least amount of risk?

Well, if you believe the economy will soon improve, then land (with a good house and in a good area), if you have some serious cash, makes sense, because the population increase is constant and more and more people will need a house as thier budget increases.

remember, I am a kid, not an economic adviser

see the mortgage rates recently? feds are doing everything they can to reflate the bubble. And in my area, it's actually working. Housing prices are almost back up to 2008 levels.

I have a feeling that the next economic downcycle is going to be worse and deeper than the one that we just got out of. I think the economy will track sideways a while longer before heading downward again. Stock market, interest rates, and everything else will stay flat, not giving people much of an investment term for the short run. At the very least it will give people some time to reduce debt and build savings.

just my .02

Originally Posted by JCB1983

Hmm. Timeframe. 10-20 Years?

10-20 years?

If we're talking...

1. 20+ years,
2. Not knowing what lies ahead,
3. It's a buy/hold, unmanaged investment...

I would have to go with MS70/PF70 First Spouse coins.

got 'em!

Originally Posted by treehugger

I would say all of them are valid investment assets, but none should be highlighted as the "best", as that opens a person to unwise exposure in a particular asset class, as some will interpret "best" to mean "only" and thus neglect the others, thereby not being at all diversified.

Gotta agree with the above. I would have to choose stocks.

Not a hard question to answer 75% mutual funds and 25% precious metals. Always thinking long term only.

I didn't answer this poll because without a definition of "best" then there is no answer to this question. But this applies to all of them.

1. Past Returns are no indication of Future Results
2. Go Back and Read #1 again. Failure to understand this, is the biggest reason people lose money on their investments. People here will often quote what happened to PMs 30 years ago, cumulative returns on the stock market, etc. it's all irrelevant to now and the future.
3. Never take advice from anyone who will make money from your decision. This includes banksters, real estate agents, insurance people, lawyers. Never ever invest your money with "financial advisors".
4. There is no substitute for doing your own research. If you don't understand an investment, don't do it.
5. Nobody knows more about your financial situation than you. Take advice, especially without sound reasoning behind it, from friends, coworkers, relatives, people on this forum with a grain of salt. It may be good for them, but not so good for you. Most likely they are looking for validation of their own misguided decisions. Read #4 again.

I will say one additional thing. The best investment that anyone can make for their personal financial future and one where they completely control the outcome is to get out of debt. Yet ask most Americans who fancy themselves as smart investors, "what is your plan to retire all your debt?" and you will often be met with a blank stare. Then you will hear all the excuses as to why it's good to have debt. I note, this question was not on that poll.

Originally Posted by treehugger

The poll is based upon a loaded question, in that it assumes there is a best investment. From a true investment perspective, all of the assets listed could be made part of a long-term, negatively-correlated, diversified portfolio.

I would say all of them are valid investment assets, but none should be highlighted as the "best", as that opens a person to unwise exposure in a particular asset class, as some will interpret "best" to mean "only" and thus neglect the others, thereby not being at all diversified.

What he said.

That being said, the one that's worked out best for me is real estate, followed by gold bullion. Both based purely on luck in timing the market.

It sounds trite; but it really comes down to "buy low and sell high."

I've made a fortune in furbies, why isn't it on the list?

Originally Posted by rodeoclown

I've made a fortune in furbies, why isn't it on the list?

Remember Beanie Babies? They had their run too. The trick is to be the guy selling the furbies and beanie babies.