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  3. How would you invest $20K?

How would you invest $20K?

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  • A Alvaro Mendez

    Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


    Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

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    Daniel Turini
    wrote on last edited by
    #2

    Alvaro Mendez wrote: Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? In my company. :-D Alvaro Mendez wrote: Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Sure. But still would invest in my company. :-D Yes, even I am blogging now!

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    • A Alvaro Mendez

      Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


      Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

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      Christian Graus
      wrote on last edited by
      #3

      I'd buy land in my area. I live on 5 acres, on one side are houses, on the other is a 500 acre farm. A lot of subdivision is going on, but some farm blocks are still available. I want to buy 12 acres and sit on it for a few years. Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder

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      • A Alvaro Mendez

        Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


        Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

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        Jon Sagara
        wrote on last edited by
        #4

        Start running drugs. Just don't snort away the profits.

        Jon Sagara You're a cross between a retarded person and a very smart man. -- My wife :-D
        My Articles

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        • C Christian Graus

          I'd buy land in my area. I live on 5 acres, on one side are houses, on the other is a 500 acre farm. A lot of subdivision is going on, but some farm blocks are still available. I want to buy 12 acres and sit on it for a few years. Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder

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          Anders Molin
          wrote on last edited by
          #5

          How much is an acre in m2 (square meters)? (if you know it) - Anders Money talks, but all mine ever says is "Goodbye!" ShotKeeper, my Photo Album / Organizer Application[^]
          My Photos[^] New developersite: RealDevs.Net

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          • A Anders Molin

            How much is an acre in m2 (square meters)? (if you know it) - Anders Money talks, but all mine ever says is "Goodbye!" ShotKeeper, my Photo Album / Organizer Application[^]
            My Photos[^] New developersite: RealDevs.Net

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            Christian Graus
            wrote on last edited by
            #6

            According to google, one acre is 4046.8564224 squ metres Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder

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            • C Christian Graus

              According to google, one acre is 4046.8564224 squ metres Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder

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              Anders Molin
              wrote on last edited by
              #7

              20230m2, thats a lot for a single house :) - Anders Money talks, but all mine ever says is "Goodbye!" ShotKeeper, my Photo Album / Organizer Application[^]
              My Photos[^] New developersite: RealDevs.Net

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              • A Anders Molin

                20230m2, thats a lot for a single house :) - Anders Money talks, but all mine ever says is "Goodbye!" ShotKeeper, my Photo Album / Organizer Application[^]
                My Photos[^] New developersite: RealDevs.Net

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                Christian Graus
                wrote on last edited by
                #8

                Well, plainly the house is not that big..... We have a big veggie garden, a small orchard, paddocks for the sheep and a good size area for the chooks. Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder

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                • C Christian Graus

                  Well, plainly the house is not that big..... We have a big veggie garden, a small orchard, paddocks for the sheep and a good size area for the chooks. Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder

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                  Anders Molin
                  wrote on last edited by
                  #9

                  I guessed it was not the size of the house ;) But it's nice to have some land, that makes it possible to have all the things you have there... - Anders Money talks, but all mine ever says is "Goodbye!" ShotKeeper, my Photo Album / Organizer Application[^]
                  My Photos[^] New developersite: RealDevs.Net

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                  • A Anders Molin

                    I guessed it was not the size of the house ;) But it's nice to have some land, that makes it possible to have all the things you have there... - Anders Money talks, but all mine ever says is "Goodbye!" ShotKeeper, my Photo Album / Organizer Application[^]
                    My Photos[^] New developersite: RealDevs.Net

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                    Christian Graus
                    wrote on last edited by
                    #10

                    Anders Molin wrote: I guessed it was not the size of the house *grin* I thought initially that I'd worded myself badly and implied that was the house size, and that you were calling me on it. Yeah, we love it, having space around us is just brilliant, as is growing our own food. Christian I have drunk the cool-aid and found it wan and bitter. - Chris Maunder

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                    • A Alvaro Mendez

                      Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


                      Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

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                      billb2112
                      wrote on last edited by
                      #11

                      I think 30% is an unrealistic expectation. There is no asset class that has returned over 30% over the past 100 years. If you want to actively manage your money, there are many ways to attempt to achieve that return, but it's just as easy to go broke (options, futures, currencies, commodities, etc). If there was an easy answer, nobody would be asking this question and we'd all be doing it. However, one thing you might consider is diversifying among asset classes. This is simple for an individual to do with the existence of ETFs. It also reduces volatility and draw down. If its done right, you can typically beat the street and most fund managers, but a sustained 30% over any length of time just won't happen. The Intelligent Asset Allocator is a good book to start with: Intelligent Asset Allocator Also, here's a simplistic article on asset diversification using ETFs An ETF strategy that's beating the market Best of luck to you! Custom Software, Custom Solutions. Yye Software. http://www.yyesoftware.com

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                      • B billb2112

                        I think 30% is an unrealistic expectation. There is no asset class that has returned over 30% over the past 100 years. If you want to actively manage your money, there are many ways to attempt to achieve that return, but it's just as easy to go broke (options, futures, currencies, commodities, etc). If there was an easy answer, nobody would be asking this question and we'd all be doing it. However, one thing you might consider is diversifying among asset classes. This is simple for an individual to do with the existence of ETFs. It also reduces volatility and draw down. If its done right, you can typically beat the street and most fund managers, but a sustained 30% over any length of time just won't happen. The Intelligent Asset Allocator is a good book to start with: Intelligent Asset Allocator Also, here's a simplistic article on asset diversification using ETFs An ETF strategy that's beating the market Best of luck to you! Custom Software, Custom Solutions. Yye Software. http://www.yyesoftware.com

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                        Steve Mayfield
                        wrote on last edited by
                        #12

                        Actually there is, but you have to break a few arms and legs for non-payment (loan-sharking) :-D Steve

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                        • J Jon Sagara

                          Start running drugs. Just don't snort away the profits.

                          Jon Sagara You're a cross between a retarded person and a very smart man. -- My wife :-D
                          My Articles

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                          Nick Parker
                          wrote on last edited by
                          #13

                          Not getting caught should be high on your list too. ;) - Nick Parker
                          My Blog | My Articles

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                          • N Nick Parker

                            Not getting caught should be high on your list too. ;) - Nick Parker
                            My Blog | My Articles

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                            Jon Sagara
                            wrote on last edited by
                            #14

                            Bah. Details. :)

                            Jon Sagara You're a cross between a retarded person and a very smart man. -- My wife :-D
                            My Articles

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                            • A Alvaro Mendez

                              Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


                              Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

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                              Navin
                              wrote on last edited by
                              #15

                              First off, I'd pay off any loans I had, especially high-interest loans. Fortunalely I don't carry a credit card balance, but paying off other loans (student loan, etc.) you at least get a guaranteed return rate - the rate of the loan. If you have a 17% credit card rate, for instance, paying that off effectively gives you a 17% return. Other than that, stocks give you the highest returns, but only if your timeframe is long enough. Stocks aren't the right way to go if you're going to need the money soon (say, within 10 years.) But over the long haul, for instance if you want to save up for retirement 30 years in the future, then stocks are the way to go. For short-term, paying off high-interest loans, money-markey funds, and possibly bonds would be a good way to invest. If you wanta 30% return over the next two years, I suggest going here[^]. "Fish and guests stink in three days." - Benjamin Franlkin

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                              • A Alvaro Mendez

                                Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


                                Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

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                                ColinDavies
                                wrote on last edited by
                                #16

                                Silver seems incredibly affordable at the moment. So either buy silver, or use the 20,000 to leverage a large silver purchase. Regardz Colin J Davies

                                *** WARNING *
                                This could be addictive
                                **The minion's version of "Catch :bob: "

                                It's a real shame that people as stupid as you can work out how to use a computer. said by Christian Graus in the Soapbox

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                                • A Alvaro Mendez

                                  Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


                                  Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

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                                  bryce
                                  wrote on last edited by
                                  #17

                                  personally, i'd go see my financial advisor and let them do it (www.invest.co.nz) if you're making 10 % return a year you're doign well :) I'm a big believer in letting professionals do their business...if i have a tooth issue i see a dentist, I dont try and fix it myself If i my car has an engine problem, i take it to the mechanic - i don't know enough about cars to risk delving inside (my dad and brother do however) You get the picture...so if i want to invest dosh (and i do) i let the bloke who knows what hes doing deal with it...coz hes less likely to stuff it up and i dont have the time (or enery) to run around researching everything. :) cheers bryce --- Publitor, making Pubmed easy. http://www.sohocode.com/publitor

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                                  • S Steve Mayfield

                                    Actually there is, but you have to break a few arms and legs for non-payment (loan-sharking) :-D Steve

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                                    Ryan Binns
                                    wrote on last edited by
                                    #18

                                    Steve Mayfield wrote: you have to break a few arms and legs for non-payment (loan-sharking) Sounds like fun! :-D :rolleyes:

                                    Ryan

                                    "Punctuality is only a virtue for those who aren't smart enough to think of good excuses for being late" John Nichol "Point Of Impact"

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                                    • N Nick Parker

                                      Not getting caught should be high on your list too. ;) - Nick Parker
                                      My Blog | My Articles

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                                      Johan Rosengren
                                      wrote on last edited by
                                      #19

                                      How about not getting killed?

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                                      • A Alvaro Mendez

                                        Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


                                        Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

                                        J Offline
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                                        Johan Rosengren
                                        wrote on last edited by
                                        #20

                                        With the amount of interesting business proposals I get in the mail each day, It wouldn't be difficult.

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                                        • A Alvaro Mendez

                                          Say you had $20,000 USD in the bank that you wanted to invest, hopefully to generate a nice return (30% or more) within a year or two, and you were willing to take some risk, how would you invest it? Would you change your strategy if instead of $20,000 it was $50,000 or 100,000? Thanks, Alvaro


                                          Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.

                                          E Offline
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                                          Eric Astor
                                          wrote on last edited by
                                          #21

                                          Within a year or two? No way to guarantee 30%, but a solid gain is *usually* manageable within the stock market. Of course, the problem with the stock market is that the shorter your timespan, the higher the risk... and it's a function polynomial with respect to 1/x, so it gets worse faster the shorter it gets. There are two principles to the stock market - one for survival, the other for doing well. First - remember that you're taking on risk. Putting money in the market means you're willing to lose some. Don't buy or sell a stock without good reasons. Also, never forget that good reasons can include stability as easily as growth potential. Second - work with what you know. Do you know the technology business (not just technology, but the business side) well? Which segments? Those are where you invest... most of the market (including non-specialized financial managers) does NOT have as much knowledge as you do, IF you know it well. I know I said there wouldn't be a third, but it bears repeating - DO NOT INVEST WHAT YOU ARE NOT WILLING TO LOSE. It seems obvious, but many people forget this. There is no such thing as a guaranteed return, short of savings accounts, and even those aren't perfect (although 99.999% likelihood of return probably isn't that far-off an estimate). Risk and return... if you can find a case where they deviate from linear relationships in the right direction, more power to you, but I'm not sure they exist.

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