Wednesday, January 27, 2010

What should I Invest In?

It has been a long time since I posted anything. Things have been very busy at work and by the time I get home, I just want to relax for awhile and go to bed. Every new customer we have wants to get their time clocks up and running for the new year.

I have been trying to figure out how to invest the money form Mom’s house to make it last longer. I thought it would be fun to get some feedback from anyone that is reading this blog. You tell me which one you would use. Just for fun let’ say I have $100,000 to invest. So here are my choices.

1. Put it in a bank Savings account and draw 1% interest. This would give us pretty much a guaranteed amount of about 1 grand per year.

2. Put it into a money market account at 2% and get 2 grand a year. No risk.

3, Put it into a CD at 2.5% and get $2,500 per year, but there will be a penalty for early withdrawal, if we need the money.

4. Put it into Bonds. There is risk here and you could loose the principle, but there is also a chance at earning two or three times as much as you can in a CD.

5. Stocks: Tremendous upside and also a risk of loosing some of the principle. You would also need to have help in selecting the stocks. (Newsletters cost from $150 per year to $1,500 per year, and who knows how good they are.) (See next option for return on investment estimates.)

6. Mutual Funds: Let the fund manager select the stocks and move them around for me. Tremendous upside but also a risk of loosing some of the principle. (Then I would just need a newsletter to tell me which sector of mutual funds to invest in. $150 to $450 per year.) I saw a list that shows the last 20 years with of the average stock gain/loss for each month of the year. Using this list as a guide, the average gain per year would be $12,931 per year.

7. I went to a meeting with Chris Krohn, who is the founder of REIC (Real Estate Investment Club). Real Estate is not liquid, but he says he can show you how to have a monthly income from Real Estate, without being a landlord. Has anyone heard about him or his company? I would be interested in anything you have heard, good or bad.

We are paying about $52,000 per year for the Care Center.

So, there are the choices. What would you invest in?