[USER]

Hi everyone! I am 55, my house is paid for, and I make about 100k a year which covers for all my expenses comfortably. I have one income property that produces 3k a month, and currently I have 50k that I would like to invest. What is the best way to invest this money so it grows (and as safe as possible)? I don’t have other investments, except for a simple IRA account.

[张扬]

Safe from what?
Inflation? Stock market (index funds).
Short term market volatility? Bonds/treasuries/HYSA.
Zombie apocalypse? Guns and bullets.

Good luck!

Don’t miss: Investment advice – Is it unrealistic to expect a 0 gain over 2 years?

[Rick]

Cash and savings – value erosion for years, significant erosion a big part of this decade. Bonds – principle drop of unprecedented proportions for many bonds in 2022 and parts of 2023. They also didn’t perform too well in parts of 2007-2008. s&p500 index – miserable returns for most of the 2000s decade.

Tech stocks – 2000-2002, 2007-2008, and 2022 sure were like a free fall ride at the amusement park. International stocks – FOMO for last 10-12 years and didn’t fare too well at all in 2020. real estate – 2007-2009 enough said.

So… yeah. I would shift your focus to time frame that you need the money, meaning the principle as periodic income like interest or dividends or rents is different. I would shift your focus to what the need is like to pay bills (not likely given your info) or to retain current standard of living or to buy a second home or otherwise expand lifestyle. Those kinds of shifts in focus will help you quickly narrow down the range of possible investments.

[Chenoa]

Well safe depends on your tolerance. Read “A Simple Path to Wealth”. Spoiler – invest everything in VTI or VTSAX, but seriously, read the book to understand why. That’s the “safest way” to invest in the market. You can put $8K/year in a Roth so those earn tax free, rest in a back door Roth I believe (I’m not super savvy with the back door so don’t quote me on that part).

You could buy another rental property.

You could go super safe and get an HYSA for like 5% returns.

Worth a look: Thinking about changing investment strategies and need someone to talk me off the ledge (or not)

[Frank]

How is your IRA invested? Assuming you are happy with that, you would invest any new money for the long-term in the same manner as you invest your old money. Easiest way to do that is to open up a brokerage account and buy similar funds.

BTW, you do not want “as safe as possible” unless you plan to spend it soon, because that means “low or no growth.” You want reasonably safe for the returns you expect it to generate.

People who fixate on safety generally get sold expensive and inappropriate products that do not have adequate growth potential.

[Author]

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