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How Would You Invest $100,000?

March 12, 2015

Imagine you just received an extra $100,000.  How would you invest it?

I suppose that before you make a decision you would need to consider your overall situation, goals, present asset allocation and time period of the investment.  Let’s suppose that everything is already covered and this is an extra $100,000 that you could invest in any way you want in a single item.  And, the goal is to not lose it and to have it grow.  What would you do?

Here are some choices:

  • Buy gold bullion coins
  • Buy art, stamps or collectibles
  • Invest in the stock market
  • Put in a bank certificate of deposit
  • Buy long-term bonds
  • Put in a variable annuity
  • Put in an immediate annuity
  • Buy a single payment life insurance policy
  • Invest in a hedge fund
  • Invest in a private equity fund
  • Invest in a real estate partnership
  • Leverage your money by borrowing and investing in one of the above
  • Something else

I could write at least one blog on each of the above because each has its own issues, variations and complications.  An example is the portability, insurance and storage costs of the gold, art or stamps, and the time and costs of selling them.  If you buy stocks… what kind?  Choices include growth, value, high dividend, emerging markets and large, medium or small cap in each category; and individual stocks or mutual funds.  Everything has multiple ways and the choices are many.

Think about it.  You want the money to be relatively safe and to grow.

Now, consider your current portfolio.  Have you invested in a manner that keeps your funds relatively safe with a growth element?  If not, do something about it.

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