patrick.net

I recommend opening an account with a broker, using one of their managed portfolios. Choose the one with the risk tolerance you are most comfortable with and never thinking about it again until you want the money. They will take a fee of about .5-1.0% depending on plan of all invested money per year, not cash holdings. So on 80K you will pay about $325 to $650 per year. No transaction fees or costs, and it will be rebalanced as necessary throughout the year. This is the best way to get after a solid 4-9% return per year without any headache or worry.

At this amount of money, the difference between a percent of return is only 800 bucks. So trying to beat the market and get after that last couple % is simply not worth it. If you have a million dollars, a percent is 10k. That might be worth fighting for.

Vanguard Index Funds have even lower overhead and your investment will pretty much just follow the stock market. It's a reasonable bet at least.

lserranov says

Franklin California Tax free Income Fund but I don't even know if I should get them

please get them. California needs your dollars.

Yes, please don't give your money away to a broker in fees. I second the suggestion to use Vanguard Index funds. If you have a high risk tolerance and expect to leave your money untouched for *at least* 5-8 years, choose Vanguard Total Stock Market (VTSMX or similar.) If you need your money sooner, consider mixing with the Total Bond Market fund, CDs, treasuries or a money market fund.

Keep in mind, risk and reward go hand in hand, so if you put all your money in the US stock market, be aware that you could hit a rough patch and end up with roughly 0% return over 10 years or longer (just like the last 12 or so). However, over the long-run you're unlikely to find an investment that offers higher risk-adjusted returns than the stock market and no better way to capture that return than with low cost index funds.

lserranov says

My goal is to invest this money in something with no much risk and that is easy to manage.

He said he doesn't want too much risk, any fund that follows the stock market has significant risk.

The question is too broad with not enough personal information for anyone to give you the right advice.
Talk to the right person. Lots of crooks out there.

lserranov, I'm in pretty much the exact same situation (except that I've got closer to $110k). I'm terrified of risk. The first time I ever bought stock, with some of the first money I ever saved at my first professional job, was a month before the NASDAQ crashed and I lost 80% of my money.

The idea that you'll eventually get your money back isn't always true. An index fund bought in the mid 1960s didn't get back to where it had been until the 1980s, and even then inflation had ravaged its value in the interim. My own stocks are still worth nowhere near what I paid for them (Yahoo $97 a share (split adjusted); Cisco $73 per share; a couple of others. Goldman Sachs is my only winner, being worth 7% more than I paid for it back in 2000 -- but CDs would have done better).

Since then I've shied away from stocks and have kept my money in a nice safe bank account. Meager returns, but the returns never go below zero.

I'd happily pay a broker or fund manager whatever fee they liked, just as long as they guarantee me a positive return above the 0.5% or so that I can get with a CD. Want to charge 1% as a fee? Fine, just make sure I get more than 1.5% to begin with. Guarantee me a 9% return and I'll happily pay you an 8% commission.

What's available for people like us? Corporate bonds?

My strong advice is to look at Lending Club. Go to www.lendingclub.com. I have money in there for over 2 years with an average return of 7% per year. Some people even make 9-12%. It has become a safe way to invest money and more and more people are joining lending club as investors. If not the full amount, you can start with 20k or 40k there and see how you like it. In my opinion, it is easy and safe and not too risky...

Guys,

Thanks for the answers/poiunters.

If It helps, I'm in my early 40's and I have 401k and some money in Bank. I was tempted to invst because nowadays regular banks give no much in return, they give like 0.3% Max.

I did some research and looks like Compass Bankhas money market with 1% locked rate from now to May 2013. American Express Personal Bank gives 0.85%. Neither of them have a restriction so you can take money out anytime. However comparing with the 8% or so I see my 401K gives.

Hope Michinaga finds this info useful.

Thanks

sssddd says

It has become a safe way to invest money and more and more people are joining lending club

In this case, you're actually more of a passive banker than an investor because you're sort of setting the coupon rates for your clients. Granted, most of the actual work is done by lending club but hey, that's a great business since people do need personal loans esp these days.

Michinaga says

Since then I've shied away from stocks and have kept my money in a nice safe bank account. Meager returns, but the returns never go below zero.

I'd happily pay a broker or fund manager whatever fee they liked, just as long as they guarantee me a positive return above the 0.5% or so that I can get with a CD.

Sounds like you may've been assimilating into where you live nowadays

lserranov says

Guys,

Thanks for the answers/poiunters.

If It helps, I'm in my early 40's and I have 401k and some money in Bank. I was tempted to invst because nowadays regular banks give no much in return, they give like 0.3% Max.

I did some research and looks like Compass Bankhas money market with 1% locked rate from now to May 2013. American Express Personal Bank gives 0.85%. Neither of them have a restriction so you can take money out anytime. However comparing with the 8% or so I see my 401K gives.

Hope Michinaga finds this info useful.

Thanks

Get some rental real estate and leverage yourself to the max. You can have it paid off by the time you retire, and then use the rental income to cruise the world.
What are you waiting for?

Real estate in AZ or similiar, rent it, use a management co and forget about it. Stocks will crash again. 13,000 is way high for the bs economy right now. Cash is risky, just paper. Why people freak out about RE being bad is funny, excluding CA.

Bank Clerk: How can I help you, young man?
lserranov: I got 80k and I'm putting it in the bank so it can grow over the years.
Bank Clerk: Well that's fantastic. A really smart decision, young man. We can put that in a money market mutual fund, then we'll re-invest the earnings into foreign currency accounts with compounding interest aaaand it's gone.
[Blank stares and silence as it goes from the Bank Clerk, to lserranov, to the Bank Clerk, to lserranov]
lserranov: Uh... what?
Bank Clerk: It's gone, it's all gone.
lserranov: What's all gone?
Bank Clerk: The money in your account. It didn't do too well, it's gone.
lserranov: What do you mean? I-I have 80k!
Bank Clerk: Not any more, you don't.
[Gestures]
Bank Clerk: Poof!
lserranov: Well what can I do to get back my...
Bank Clerk: [Interrupts] I'm sorry, sir, but this line is for bank members only.

To the OP:

Buy weapons and MRE's.

If you want safe either stick it into savings account or there is some insured investment banks sell (don't remember the term), rate isn't very high, but it is higher than savings.... works almost like a CD but allows certain percentage to be withdrawn.

Hi,

From 0 to 10 I can take a 3 s risk factor.

Thanks

I would like even higher rewards, but with less risk. Any advice? :)

Obviously, the potential payoff is going to be relatively commensurate with the risk you take. I've done well with my equities so far, and my biggest regrets are the ones I didn't take.

Maybe blend a safer investment with some of your own picks, like a blue chip dividend paying stock?

Spend some time reading about the Permanent Portfolio ~ but I would say you should probably expect 3% to 4% returns on this. There is no safe 5%+ return. If an investment claims that, there is likely a hidden risk somewhere, or immoral/illegalities involved.

25% VTI (Vanguard Total Stock Market)
25% GLD (Gold ETF)
25% TLT (20 to 30 year US Treasury ladder)
25% Cash (Emergency Fund)

PRPFX is a mutual fund by the same name, but with high expense ratio and not the same as the 25% portfolio I just listed.

freak80 says

To the OP:

Buy weapons and MRE's.

I like how this guy thinks.

Also, don't forget the yams.

If you're looking for a relatively safe investment portfolio, it'll be mostly in corporate and muni bonds.

You need a good adviser to recommend the correct bonds, however. Since tax rates will almost surely go up after the election (no one is going to pass meaningful tax reform during an election year) muni bonds will be even more attractive. Feel free to PM me if you need a few names of good advisers. I have no interest in the financial industry BTW.

Facebooksux says

I like how this guy thinks.

I hang around with Apocalypsefuck too much. ;-)