Moneyes wrote:

Goldbug wrote: I tend to stick to blue-chips. The return may not be as high, but you can lose your shirt on small caps and start-ups very easily and I value security. I hedge against a market downturn with REITS, gold, and commodities, but I avoid the bond market, because I don't know much about it.

You sound like the everyday conservative investor.......like me. The risky bets are for the players who live and breathe the market. That's how they pay their rent and they have the extra money to play with. We play it to invest.

I agree. When I do invest in small caps, I usually buy a ETF that invests in over 2,000 small cap stocks (like the russell 2000). I put a small portion of my total portfolio to help hedge the downside risk as well.

Goldbug wrote: I tend to stick to blue-chips. The return may not be as high, but you can lose your shirt on small caps and start-ups very easily and I value security. I hedge against a market downturn with REITS, gold, and commodities, but I avoid the bond market, because I don't know much about it.

You sound like the everyday conservative investor.......like me. The risky bets are for the players who live and breathe the market. That's how they pay their rent and they have the extra money to play with. We play it to invest.

Ergonomic wrote: How are you dealing with your money. I know that you need to get an investment vehicle that would give you a higher interest rate than the inflation rate. What investments are you making now?

Mainly shares, although I tend to stick to blue-chips. The return may not be as high, but you can lose your shirt on small caps and start-ups very easily and I value security. I hedge against a market downturn with REITS, gold, and commodities, but I avoid the bond market, because I don't know much about it.

Egghead wrote: real estate is a hefty and long term investment, unless you are flipping places of course.

That's the way most people see flipping, so that's typically the way it is. But you can also use that business model as a springboard for more expensive, long term real estate projects. Use the profits from a few "flips" to invest in more lucrative projects.

Breakinger wrote: I have a friend that is into buying foreclosures, fixing them up, and selling them off. I don't know how he does it because it seems like it could potentially be a risky business. My husband has thought about doing something like this, but we just don't have the capital to get started. Do the individuals that do this get someone to back them on investments like this?

You can always get a loan, but it's easier to do if you have a business structure. A DBA or LLC at the very least, as banks and credit unions are more likely to give business loans for this reason than personal loans.

It is a high risk/high reward business model. During good times, you can make a ton of money, but you can easily lose your shirt during a housing downturn.

Breakinger wrote: I have a friend that is into buying foreclosures, fixing them up, and selling them off. I don't know how he does it because it seems like it could potentially be a risky business. My husband has thought about doing something like this, but we just don't have the capital to get started. Do the individuals that do this get someone to back them on investments like this?

I have friends who do this also and my husband has also been interested in flipping, but I don't think we live in the right area to make a good profit from it. Some states/counties/towns are better than others for this type of thing and I believe we are way too rural for it to be successful.

I have a friend that is into buying foreclosures, fixing them up, and selling them off. I don't know how he does it because it seems like it could potentially be a risky business. My husband has thought about doing something like this, but we just don't have the capital to get started. Do the individuals that do this get someone to back them on investments like this?

At one time you used to hear about investing in "REITS" which are Real Estate Investment Trusts. It took a Licensed SEC Licensed person to sell them. Risky for sure but also potential for fast gains.

Land and building are probably the most popular investment area these days. More humans are born, more space needed. The more strategic the location is, the higher the price goes. Too bad that it takes a lot in the beginning. I'm also thinking about investing on up-and-coming business, but I'm not really sure how to start yet.

Some people see the real estate market as an investment tool. If property values rise on vacant land, that is looked upon as a good rate of interest. If they raise at a pace that is more aggressive then inflation, that's even better.

I agree that getting some direction from a professional is a good idea. You may also want to consider a subscription to something like Money or Forbes. When I was first starting out, reading their articles helped give me the insight I needed to ask the right questions.

I would recommend you to talk to someone about how/where to start before you actually started yourself. You may be in a financial position to invest in something beyond money market accounts, but you should talk with a professional first to help you understand what you are getting yourself into.

Wanderer wrote:
My investments range from bonds, to stocks, to mutual funds, to certificates of deposits, to money market accounts, and real estate. I like mining and precious metals. Others on this site like EFT's. I stay away from the strange and exotic stuff. Some of my regular stocks are scary enough. Note that many of these investments are not simple and require some cash...

This sounds like a sensible way to reduce risk. I can imagine it takes a good while to build up to this level of investment, right? I mean real estate is a hefty and long term investment, unless you are flipping places of course.

I've always wanted to invest in something, but I don't know where to start. Would you recommend that someone with no experience start out with a money market account?