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Have $10,000 in savings- Where to invest?
 

AsianMonky's picture
(Orangutan, 341
 
Points)
 on 1/10/13 at 9:18pm

College sophomore...I have $10,000 sitting around in my bank account. What are some of the best low-risk ways to invest this money and get 5%+ returns on it annually?

Tags:
HedgeHog's picture

I'd look at Jeff Gundlach's

HF
(Baboon, 126
 
Points)
 on 1/10/13 at 9:28pm

I'd look at Jeff Gundlach's doubleline total return fund. Pretty safe stuff but a bit more zest (overweight to some less followed mbs strategies) than the typical bond fund which may not get you to 5% these days without taking excessive interest rate/duration and/or credit risk.

SirTradesaLot's picture

Where did you arrive at the

O
 
Points)
 on 1/10/13 at 9:43pm

Where did you arrive at the 5% return figure?

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

aicccia's picture

Give it me. I'll invest it

PT
 
Points)
 on 1/10/13 at 10:04pm

Give it me. I'll invest it for you.

On a serious note, since no investment is ever guaranteed, you should instead be asking which 10-20 funds you can diversify your money across. If you're not prepared to do the due diligence on 10-20 funds, then you're not prepared to safely invest your money.

"It's not that I'm so smart, it's just that I stay with problems longer." - Albert Einstein

AnalystMonkey2769's picture

aicccia: Give it me. I'll

IB
(Gorilla, 502
 
Points)
 on 1/10/13 at 10:32pm
aicccia:

Give it me. I'll invest it for you.

On a serious note, since no investment is ever guaranteed, you should instead be asking which 10-20 funds you can diversify your money across. If you're not prepared to do the due diligence on 10-20 funds, then you're not prepared to safely invest your money.

boom.

I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG

WallStreetPlayboys's picture

Unfortunately the truth is at

O
 
Points)
 on 1/10/13 at 10:42pm

Unfortunately the truth is at your age you should be spending that money taking LARGE risks. People here who are telling you to make 5% are either giving you advice they hear from their college professors or have little time on their hands.

No hate at all. there is a time to think about diversification and a time to try and learn and make a big move.

If you are in college you want to leverage that to make a few big plays. Why? Your signing bonus alone will almost double your worth, besides if you last in Wall Street for longer than a couple years.. 10K isnt anything. $10K mentally to you is equivalent to $1M mentally for you in 5 years or so. Think big when you're young.

There is an important saying everyone should know "Diversify to retain, Go all in to get rich".

When you're younger you can make riskier bets. Use the 7%/5%/10% rules whatever you may choose for your real savings and income. Any job you have today will be peanuts compared to 5+ years on the Street. You can save 10K in a few months in your near future.

WallStreetPlayboys.com

Twitter @WallStPlayboys

Get paid, Get Laid. Nothing else matters.

gammaovertheta's picture

admin: Unfortunately the

ST
 
Points)
 on 1/10/13 at 11:01pm
admin:

Unfortunately the truth is at your age you should be spending that money taking LARGE risks. People here who are telling you to make 5% are either giving you advice they hear from their college professors or have little time on their hands.

No hate at all. there is a time to think about diversification and a time to try and learn and make a big move.

If you are in college you want to leverage that to make a few big plays. Why? Your signing bonus alone will almost double your worth, besides if you last in Wall Street for longer than a couple years.. 10K isnt anything. $10K mentally to you is equivalent to $1M mentally for you in 5 years or so. Think big when you're young.

There is an important saying everyone should know "Diversify to retain, Go all in to get rich".

When you're younger you can make riskier bets. Use the 7%/5%/10% rules whatever you may choose for your real savings and income. Any job you have today will be peanuts compared to 5+ years on the Street. You can save 10K in a few months in your near future.

So all in HLF calls right?

AsianMonky's picture

Thanks for the answers guys -

(Orangutan, 341
 
Points)
 on 1/10/13 at 11:05pm

Thanks for the answers guys - what about stocks? Can you guys chime in and name 3~5 relatively safe stocks that are likely to boom in next 1~2 years?

SirTradesaLot's picture

admin: Unfortunately the

O
 
Points)
 on 1/10/13 at 11:14pm
admin:

Unfortunately the truth is at your age you should be spending that money taking LARGE risks. People here who are telling you to make 5% are either giving you advice they hear from their college professors or have little time on their hands.

No hate at all. there is a time to think about diversification and a time to try and learn and make a big move.

If you are in college you want to leverage that to make a few big plays. Why? Your signing bonus alone will almost double your worth, besides if you last in Wall Street for longer than a couple years.. 10K isnt anything. $10K mentally to you is equivalent to $1M mentally for you in 5 years or so. Think big when you're young.

There is an important saying everyone should know "Diversify to retain, Go all in to get rich".

When you're younger you can make riskier bets. Use the 7%/5%/10% rules whatever you may choose for your real savings and income. Any job you have today will be peanuts compared to 5+ years on the Street. You can save 10K in a few months in your near future.

The only thing more idiotic than this advice is the website in your signature. That is straight up embarrassing.

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

WalMartShopper's picture

Whatever you do, don't fuck

 
Points)
 on 1/10/13 at 11:14pm

Whatever you do, don't fuck up like me and invest in bitches

If the glove don't fit, you must acquit!

SirTradesaLot's picture

AsianMonky: Thanks for the

O
 
Points)
 on 1/10/13 at 11:15pm
AsianMonky:

Thanks for the answers guys - what about stocks? Can you guys chime in and name 3~5 relatively safe stocks that are likely to boom in next 1~2 years?

You seem to have conflicted goals. Do you want 'boom' or safe?

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

AsianMonky's picture

SirTradesaLot: AsianMonky:

(Orangutan, 341
 
Points)
 on 1/10/13 at 11:20pm
SirTradesaLot:
AsianMonky:

Thanks for the answers guys - what about stocks? Can you guys chime in and name 3~5 relatively safe stocks that are likely to boom in next 1~2 years?

You seem to have conflicted goals. Do you want 'boom' or safe?

Somewhere in the middle I guess - blue chip stocks that are likely to rise consistently, if that makes any sense.

SirTradesaLot's picture

AsianMonky: SirTradesaLot:

O
 
Points)
 on 1/10/13 at 11:28pm
AsianMonky:
SirTradesaLot:
AsianMonky:

Thanks for the answers guys - what about stocks? Can you guys chime in and name 3~5 relatively safe stocks that are likely to boom in next 1~2 years?

You seem to have conflicted goals. Do you want 'boom' or safe?

Somewhere in the middle I guess - blue chip stocks that are likely to rise consistently, if that makes any sense.

The problem is that the transaction costs will kill you with $10k if you buy individual stocks. At $10 per trade, you'll spend 3% buying 30 stocks and 6% for a round trip. As boring as it sounds, buy some no-load index funds.

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

AsianMonky's picture

SirTradesaLot: AsianMonky:

(Orangutan, 341
 
Points)
 on 1/10/13 at 11:32pm
SirTradesaLot:
AsianMonky:
SirTradesaLot:
AsianMonky:

Thanks for the answers guys - what about stocks? Can you guys chime in and name 3~5 relatively safe stocks that are likely to boom in next 1~2 years?

You seem to have conflicted goals. Do you want 'boom' or safe?

Somewhere in the middle I guess - blue chip stocks that are likely to rise consistently, if that makes any sense.

The problem is that the transaction costs will kill you with $10k if you buy individual stocks. At $10 per trade, you'll spend 3% buying 30 stocks and 6% for a round trip. As boring as it sounds, buy some no-load index funds.

I was thinking of buying ~5 stocks -AAPL, FB, Daimler, Lockheed, UTX

any thoughts?

AnalystMonkey2769's picture

AsianMonky: SirTradesaLot:

IB
(Gorilla, 502
 
Points)
 on 1/10/13 at 11:42pm
AsianMonky:
SirTradesaLot:
AsianMonky:
SirTradesaLot:
AsianMonky:

Thanks for the answers guys - what about stocks? Can you guys chime in and name 3~5 relatively safe stocks that are likely to boom in next 1~2 years?

You seem to have conflicted goals. Do you want 'boom' or safe?

Somewhere in the middle I guess - blue chip stocks that are likely to rise consistently, if that makes any sense.

The problem is that the transaction costs will kill you with $10k if you buy individual stocks. At $10 per trade, you'll spend 3% buying 30 stocks and 6% for a round trip. As boring as it sounds, buy some no-load index funds.

I was thinking of buying ~5 stocks -AAPL, FB, Daimler, Lockheed, UTX

any thoughts?

Pls for your own sake, have you heard of due dilligence? read some equity research/industry analysis reports or do your own fundamental analysis...i dont know how safe AAPL or FB are really right now, im sure others will agree. both have seen high levels of volatility past several months (internal or earnings related reasons not ONLY fiscal cliff/debt related) and could be a fantastic or terrible buy

I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG

SirTradesaLot's picture

AsianMonky: SirTradesaLot:

O
 
Points)
 on 1/10/13 at 11:50pm
AsianMonky:
SirTradesaLot:
AsianMonky:
SirTradesaLot:
AsianMonky:

Thanks for the answers guys - what about stocks? Can you guys chime in and name 3~5 relatively safe stocks that are likely to boom in next 1~2 years?

You seem to have conflicted goals. Do you want 'boom' or safe?

Somewhere in the middle I guess - blue chip stocks that are likely to rise consistently, if that makes any sense.

The problem is that the transaction costs will kill you with $10k if you buy individual stocks. At $10 per trade, you'll spend 3% buying 30 stocks and 6% for a round trip. As boring as it sounds, buy some no-load index funds.

I was thinking of buying ~5 stocks -AAPL, FB, Daimler, Lockheed, UTX

any thoughts?

I don't have thoughts on those stocks, but I have thoughts on your approach.
1. What is your edge over the thousands of highly compensated people following every move of those companies?
2. You mentioned something about safety, but now you are talking about buying an uber-concentrated portfolio. This portfolio has more risk than an S&P 500 fund, by far.
3. FB is a flaming pile of dog poo.
4. This is not a portfolio.
5. Your transaction costs will be too high.

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

Vagabond85's picture

Go with what the other guy

AM
 
Points)
 on 1/10/13 at 11:55pm
limache's picture

Just invest in a low cost

(Chimp, 1
 
Points)
 on 1/11/13 at 12:00am
aicccia's picture

[/quote] 3. FB is a flaming

PT
 
Points)
 on 1/11/13 at 12:29am

"It's not that I'm so smart, it's just that I stay with problems longer." - Albert Einstein

BTbanker's picture

Wells Fargo Exxon

IB
 
Points)
 on 1/11/13 at 12:53am

"A man generally has two reasons for doing anything. One that sounds good, and the real one." - J.P. Morgan

chabo11's picture

Vagabond85: Go with what the

(Orangutan, 310
 
Points)
 on 1/11/13 at 1:24am

See my WSO blog

    "The only thing that interferes with my learning is my education." Albert Einstein
trazer985's picture

can you just give me the

ST
(King Kong, 1,743
 
Points)
 on 1/11/13 at 1:32am
OkComputer's picture

Herbalife and Hewlett-Packard

IB
(Baboon, 173
 
Points)
 on 1/11/13 at 3:09am

"Better to remain silent and be thought a fool than to speak out and remove all doubt." --Abraham Lincoln

WallStreetPlayboys's picture

Since you've nulled the

O
 
Points)
 on 1/11/13 at 11:20pm

WallStreetPlayboys.com

Twitter @WallStPlayboys

Get paid, Get Laid. Nothing else matters.

UFOinsider's picture

Stick a few thousand into a

O
(Human, 10,325
 
Points)
 on 1/12/13 at 1:36am

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

UFOinsider's picture

$500 in returns a

O
(Human, 10,325
 
Points)
 on 1/12/13 at 1:41am

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

WallStreetPlayboys's picture

Reiterate UFO's points...

O
 
Points)
 on 1/12/13 at 2:33am

WallStreetPlayboys.com

Twitter @WallStPlayboys

Get paid, Get Laid. Nothing else matters.

WSRenaissanceMan's picture

I think he just wants his

IB
 
Points)
 on 1/14/13 at 9:49am

Make opportunities. Not excuses.

companion's picture

Pick an undervalued stock,

(Baboon, 108
 
Points)
 on 1/14/13 at 3:18pm

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