The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: LilithPaul on August 13, 2014, 06:12:37 AM
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What is the best way to invest $50K?
(1) Down payment on a house
(2) Buy empty lots of land in urban areas that are seeing rising value
(3) Invest (how?)
(4) Retirement funds
This is purposefully open-ended question. What would YOU do?
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What is the best way to invest $50K?
(1) Down payment on a house
(2) Buy empty lots of land in urban areas that are seeing rising value
(3) Invest (how?)
(4) Retirement funds
This is purposefully open-ended question. What would YOU do?
It depends entirely on when you need access to this money. But me, I'd divide that $50,000 into various financial instruments for retirement.
The last thing I would ever do is to put money into empty lots of land. For $50,000 you can't buy a parcel that's really going anywhere. You are not a real estate professional.
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It may be purposefully open ended but then the answer is either "it depends" or "follow your investment policy statement". So it's a rather vague question regardless of it's seeming conciseness and that makes it very difficult to know what you're truly asking. Are you seeking advice? Or curious about others circumstances?
How one determines the "it depends" is by figuring out your goals and laying down some assumptions. Some people won't be buying a house, some people won't be interested in empty lots of land (really? empty city plots? I'm no expert but that sounds kind of like a bad idea.), some people won't be interested in investments, and some people (most) will find it difficult to squeeze a $50k windfall into retirement funds.
Also hookers and blow.