Reasonable Investment Advice
If you are wondering how to invest $10,000 you may not want anything fancy. You may just want reasonable investment advice. If the folks who invested all of their money with Bernie Madoff had it to do all over again they would go with reasonable investment advice and not get suckered into a pyramid scheme promising unreasonably high profits year after year. The old saying is if it seems too good to be true, it probably is – too good to be true. But can you get rich following reasonable investment advice? May so and maybe not but you will probably not lose all of your money in a hedge fund either, unlike many in the 2008 market crash. Money managers for large investment funds, wealthy family trusts, and the like typically concern themselves first with staying ahead of inflation and making a couple of percent a year. They trust in the power of compounded returns to keep a billion or so in the family over the decades and longer. You too can profit from following reasonable investment advice.
First Things First
Before starting to put money in stocks, for example, there are a few housekeeping chores to take care of. Pay off your credit card debt. Any stock that returns you eighteen percent per year per year in dividends and appreciation is an excellent investment. Don’t let the interest on your credit cards negate a good investment. Pay off your credit cards. Next put some money in a rainy day fund. Nothing hurts worse in the world of investing than having to pull money out of a stock because you need to pay unexpected bills and then seeing the stock go up a hundred fold in price. And, last but not least, buy your own home. It can be a free standing house or a condo, but either way, your mortgage interest will be tax deductible and you can live in your investment.