Investing

If I had $20,000 to invest and needed access to it in 10 years what should I be looking for? Needs to be relatively low risk but would like a decent return.

Can anybody recommend somebody to work with? I’m skeptical of running into a Bernie Madoff type. Currently using Thrivent and getting around 8% annually.

Thoughts?

BTW, keep it simple and easy to understand.

Dutchboy wrote:

If I had $20,000 to invest and needed access to it in 10 years what should I be looking for? Needs to be relatively low risk but would like a decent return.

Can anybody recommend somebody to work with? I’m skeptical of running into a Bernie Madoff type. Currently using Thrivent and getting around 8% annually.

Thoughts?

BTW, keep it simple and easy to understand.

” 8 percent”? If it ain’t broke DON’T fix it!! Low risk at 8% I would take every day of the week–for the next ten years…if compounded, more than doubles your initial investment.

A new boat is a Great investment………. wait for it….

My wife had about the same thoughts on a new pick-up G.

Apple Stock…

steve-fellegy wrote:

<div class=”d4p-bbt-quote-title”>Dutchboy wrote:</div>
If I had $20,000 to invest and needed access to it in 10 years what should I be looking for? Needs to be relatively low risk but would like a decent return.

Can anybody recommend somebody to work with? I’m skeptical of running into a Bernie Madoff type. Currently using Thrivent and getting around 8% annually.

Thoughts?

BTW, keep it simple and easy to understand.

” 8 percent”? If it ain’t broke DON’T fix it!! Low risk at 8% I would take every day of the week–for the next ten years…if compounded, more than doubles your initial investment.

X2 with what Steve said.

What is your definition of a decent return?

I was going to recommend utility stocks that pay dividends of around 4% or so.

If you are getting 8% right now, that will be over $43k in 10 years compounded. I wouldnt change a thing.

Dutchboy wrote:

Currently using Thrivent and getting around 8% annually.

Thrivent account and you’re getting 8%?

Can I ask what type of account you’re getting than on?
I’ll take 8% low risk.

Thanks in advance!

I’m guessing 8% is the current 1 year return on something like an S&P Index fund, not a fixed investment.

OK, I’m assuming this is just a plain old post-tax cash investment, NOT a tax-advantaged plan like a 401k, etc.

Avoid any single stock. Just too much volatility and 10 years is a long time to count on one company continuing an upward trajectory.

I would look to a mutual fund like an S&P index fund if you’re not in that already. Two things to watch for:

1. Watch the fees. Having a fund with high fees is a killer on such a short term investment. Compare fees carefully, there is plenty of info online about what they should be.

2. As you move toward the point where you’re going to use the money, you want to be backing slowly out of the fund and into something that has a fixed return or at least more stable value.

What I hope we ALL learned from the Great Recession is that we do NOT want to be all in in the market with money that we need in the near term. Cause if the market hits the skids, so do you.

There are a lot of different ways to do this. Personally, I “skim the profits”. As the investment increases in value, I slowly sell off the portion that represents the “profit” and move that to a stable value fund.

Otherwise, you could make 8% for the next 5 years, then the market could take a 4 year correction and you could end up with a 10 year investment that only pays an effective rate of 2-3%.

The biggest thing is that you should have a representative that you trust and can talk to. Explain clearly your goals and evaluate their advice.

Grouse

invest in thoughts other than investing, my 2cents

crappie55369 wrote:

invest in thoughts other than investing, my 2cents

I did……I thought gee if I wanted to retire how could I live?

Keep your 2 cents, you will need it.

Dutchboy wrote:

<div class=”d4p-bbt-quote-title”>crappie55369 wrote:</div>
invest in thoughts other than investing, my 2cents

I did……I thought gee if I wanted to retire how could I live?

Keep your 2 cents, you will need it.

LOL

Dutchboy wrote:

<div class=”d4p-bbt-quote-title”>crappie55369 wrote:</div>
invest in thoughts other than investing, my 2cents

I did……I thought gee if I wanted to retire how could I live?

Keep your 2 cents, you will need it.

LOL yeah maybe… ive always been a dreamer and preferred not to plan ahead. Call it foolish if you want and if i were to suffer for it near the end thats ok. “why work like a dog through the best years of your life just so you can pant a few times before you die.” Ive always believed in that mentality, even if i havent practiced it lately and ive have been sitting in an office for the last 3 years

Being only 3 years away from retirement I have started to put my investments into more stable and fixed funds. Some of our stuff is in deferred comp, which is a gov employee benefit and some is invested in regular over the counter money makers. Hopefully we threw the darts at the right investments, time will tell.

8% on a “safe” investment. I’d take every penny I have in a high risk stuff now and turn it over to that. With stocks as high as they are now… I’m thinking 8% annual without the risk would be a gift over the next ten years. I’m in?

If you want to really think out of the box, consider an old violin. Yes, the wood kind you would play.

FDR

I’ve been using Edward Jones for 15 years and I can’t say enough good about them. I brought an amount near to what you’re saying and it’s doubled with no further contributions.

at 8% its time to pull out before Madoff runs with your money…. don’t get greedy.

Here is a chart of the SP 500 showing returns over a 10 year period. This the annualized return or CAGR (compound annual growth rate) and not “average returns” which is a meaningless number. You can see in all time periods there was at least a positive return if you held you $$ over a ten year period from 1950 to 2013; with only 4 periods your CAGR was less than 5%. This assumes all dividends are re-invested every quarter too. Historically, dividends (if re-invested to buy more shares) have represented about 40% of all stock markets gains over the last 70 to 80 years. I doubt that will change either going forward.

By comparison, you can see the “risks” and volatility of the SP 500 if you only held it for 1 year. The longer you hold stocks and re-invest dividends the lower the risk and greater the chance you will achieve a 9% to 10% CAGR.

Another thing to consider is paying taxes on dividends every year and the long term tax consequences when you sell your shares (long term instead of short term)

The index fund that tracks this best is the Vanguard 500 Index Fund Admiral Shares (VFIAX).

Good Luck.

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Classic guns traditionally beat the stock market in any given 10yr period. Find a good deal on a quality side by side or a high value Winchester lever gun.

You can double it in five minutes simply by placing it on red….or, uh black.

Thanks for the advice guys.

Dog, I wouldn’t know a good gun from a bad gun unless it had been wrapped around a tree, then I would figure it out.

Dutchboy wrote:

Thanks for the advice guys.

Dog, I wouldn’t know a good gun from a bad gun unless it had been wrapped around a tree, then I would figure it out.

That’s ok. I wouldn’t know a good stock from a bad one unless it was made of wood.