Say I wanted to invest $15,000 into something with a guaranteed percentage return. What are the best options for the best returns? I know nothing about this and understand a bowhunting forum isn't the best place to ask advice on this, but I am sure someone is knowledgeable on this here.
How long are you wanting to put it away? Is this something you want really liquid or something you want to put away for retirement? I'm actually scheduled to talk with a financial advisor next week about this specifically. I want something liquid that I can tap in a moments notice should the right opportunity arise in the future. When I learn more I'll share what I come up with. For now I have a bank account through a local credit union that is paying me 2% back with no real comittments, but I'm sure there is something out there better than this.
I don't necessarily have to be able to tap instantly, but not looking for something I cannot touch either. Be sure to let me know what you learn.
Explore a Roth IRA within the index that has a fund to your liking based upon your personal risk tolerances. Investigate the fee structure, historical data, and firm.
Curious why you think XOM currently? The annual dividends at 2-3% or are you predicting another surge in growth?
I would use it on a down payment on a rental. You build equity and have cash flow with someone else paying for it. Of course the downside is dealing with renters and repairs but I think you can handle the repairs and maintenance. When you need cash you can borrow against it and the tax write offs aren't bad either.
We have money in several mutual funds. The return is fairly high and you can pull money out with reasonable notice. Our health insurance doesn't cover maternity so we had to take out money to pay for both pregnancies. I think you could get into one or more mutual funds with $15,000.
This is my game plan on investing. Hard assets (ie real assets) that pay themselves off are the safest investment around if you are smart with when/where you purchase.
I'd have to disagree. you default on a house the bank and irs are coming after you, they'll take you for more than what you got. housing prices go down or neighborhood goes down, some places you can't give your house away. you're also potential tally liable for things that happen on your property even without you there. stocks on the other hand, you lose only what you put in. quite possibly it could be an enron on the downside.
My husband has had some experience with real estate investment and he agrees with you that you can't beat having tenants buy a piece of real estate for you. But you will have to manage it, which includes, collecting rents (you hope), repairs and maintenance, finding and qualifying new tenants, etc. You may want to keep in mind that real estate, while a good investment, is not particularly liquid.
You have to be extremely dense or extremely risky to buy rental properties that fit this description. Rental properties aren't the inflated $250k neighborhoods that took huge hits in 2009. Ours average around $65k-$90k and were all bought for 10-20% less than their appraisal value at the time of auction/private sale. Even if we just flipped them we'd have made money, much less the fact that their 12 year notes are being paid off by someone else. Not saying all rentals are foolproof, but the more stabile a rental property the less you typically cash flow until the note is paid off. Most people I see fail at the rental business have either gambled on the slumlord type properties that cash flow a lot, or high dollar high risk/reward type properties. Invest slowly and safely in real estate and it will do nothing but increase in value and pay itself off for you.
How much are you guys getting for rent where you are at? In my area, houses might fetch $600 a month rent. After upkeep, taxes, repairs, etc, I don't see them being very profitable. At least in my area....
I own a Ranch side x side with a 4 car garage I'm getting $850.00 per unit with the garages which is about $50 a month light. I bought the place at the low end of the market, I have stable renters and I have positive cash flow. My mortgage is being paid by the renters the property value is on the up and if I wanted to sell I think I could turn the place in 3 months for 15 to 20 thousand more then I paid for it. What's not to like oh dealing with renters petty crap.
It's not really liquid in the since that I could get cash out of it in a week but I could in a month if needed. Which isn't to bad! I also have good tenants that pay the rent on time and I do most of the maintenance myself and I am able to write everything off including mileage driving back and forth.
