Don't put it into property that's in bubble territory as well. Its the Chinese real estate bubble that's really what's causing the real estate bubble in the US and Canada, and again cracks are appearing in the Chinese market so I expect we'll see falling house prices in the near future.
So its got to be gold and silver they are like the anti-stocks they do well when everything else goes down the toilet, and everything is going to go down the toilet soon. Every 7 years we get a crash. The 1994 currency crises laid the foundation for the dotcom bubble in 2001. The dotcom crash created a lot of liquidity which led to the subprime mortgages and housing prices bubble which crashed in 2008. That was a shot across the bow that was a warning. We never fixed it and now the 2008 crash is going to boomerang on us and hit us again and this time its going to be a lot harder.
$20,000 gets you about 16 ounces of gold at current prices. I think 3 or 4 years from now you could be looking at 8-10 grand per ounce. Every so often (40 years or so) there's a reckoning and gold and silver have to be revalued to catch up with all the money the government has printed. The difference is the opportunity.
I wouldn't do mutual funds or anything related to the stock market. If you see the numbers, you will know that the stock market has been performing REALLY well in the last 5 years, reason why there must be a market correction soon (many people think there will be a market crash). I would find an instrument that is not tied to the stock market, than can give you 3% or more average in the long run. Something secure, with guarantees. Once you have a decent amount of money saved, then you can do some "gambling" in the stock market... but don't gamble your emergency fund! Put it somewhere safe.
I can give you some ideas, if you are interested. edgar@arceofinancial.com
Blessings!
1- you should keep 6-12 months worth of expenses in an emergency fund
2- if you job has a 401k retirement plan, start contributing - try starting at the % that will get you the maximum company match - until then you can put money into a Roth IRS retirement acct
3-you should own a house as your primary residence before thinking about investment properties
Go to your bank and see an investment banker. He will give you some advice. I'd invest about $10,000 to 12,000 of your money. I'd put maybe $5000 in a savings account you could easily access in case of emergency. Then, and this is only me, I'd buy a round trip airplane ticket to someplace I've never been and enjoy learning new things and getting some pleasure out of the money I'd saved. If you go to the southern hemisphere, you could have another springtime.
Invest in me! I only need about $5k. By law, you get 12-15% annually guaranteed. Retirement plans only average about 1.5% last I remember, stock is unpredictable and going through brokers or big businesses take up more of you're money than they should. With me, the is only you and me. No haggling, no hassling.
Let you're money work for you, not the other way around.
I would go to vanguard
Vanguard Total Stock Market Index
Vanguard Europe Index
Inflation protected bonds from www.treasurydirect.gov
Put money within a local credit union
You decide the percentage within the listed above accounts...Take Care
How old are you? Have you bought a house yet? What are your life plans? (wife, kids, job security/change?) Do you have any other debt? ( car loan, credit card? - if so, pay them off).
Put much of the remaining money into 1 - 3 year term CD's at the bank.
the irs rules are at irs.gov for contributing to an ira. you go to any discount broker like fidelity or schwab or tdameritrade or even vanguard if you want to do mutual funds and they will tell you what the max per year is.
Idk
I have $20,000 saved up. If I open up a retirement plan, how much should I open it with, and how much should I invest each month, assuming I earn $1600/month. Also, i have been told residential property is good to invest in as well. I'm a great saver and have everything I want, now I'm just getting bored with my money I worked so hard far, and now I want it to work for me. Thanks!
