Make big profit

5 Responses to “How can I effectively invest money and make a profit of it?”

1. zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz, on August 25th, 2010 at 6:19 am Said:

   Suzie Orman is really great. Check her website.

2. I Love Yahoo Answers!, on August 28th, 2010 at 8:11 am Said:

   Because houses are cheap to buy right now, if you can afford it, i say go into investing into real estate…right now you buy a home at 3-10x less than its value..when the market rebounds youll make a killing in profit.

   Another way is to rent out a place and use the money earned to pay the necessary bills it requires to have it (e.g. enough to pay its monthyl mortgage expense if its a house) and any amount remaining is monthly profit.

3. Eric714, on August 28th, 2010 at 12:47 pm Said:

   Go to a casino and put it all on red… no wait, black! You’ll double your money.

   Just kidding.

   First thing: pay off your debt. If you have credit cards with 20% interest rates, that’s like getting an investment with a 20% return. That is an excellent return for your money.

   I would suggest that you read a book like Secrets of the Millionaire Mind. If you buy the book, you can get a pass for a free seminar. It will change your outlook on money. It changed my life. You have to have to courage to take some risks – sometimes we assign too much risk to low risk things (like attending the free Millionaire Mind Intensive seminar) vs putting 10% of every paycheck in your 401(k). Which is riskier?

   Then you need to find where your passion lies and seek opportunity there.

   I believe in the adage: when you stop growing, you die. Invest in yourself – educate yourself.

   “If you think education is expensive, try ignorance.” Benjamin Franklin.

   I have invested in stock and options education program: Spread Trade Systems. It costs about 10k, but it is guaranteed to work. It is NOT a “get rich quick” scheme. It’s a lot of work and requires a lot of time. It will take you about a year to get through the program. If you check them out, tell them I sent you (Eric Hale) and ask for a discount!

4. Teddybearcub, on August 30th, 2010 at 4:56 pm Said:

   One never knows in this economy but regardless of fluctuating house prices, put in ito real estate and live in it, I’d say. But even that is scary at this time. Otherwise it sits unused hidden in whatever place. Good luck.

5. dan131m, on September 2nd, 2010 at 4:22 pm Said:

   There is no safe way to invest money and make a large profit. Investing comes down to weighing your tolerance for risk — the more risk you can take, the better chance you have of making more money. So it basically comes down to how much money you have, how much you can afford to lose if things go wrong, and how long you have to invest it. Another thing to consider is if you have any other money invested; if so, you probably want to diversify and pick something unrelated. If you already own stocks, for instance, you should buy different types of stocks, or real estate, or bonds, or commodities…

   I’m going to guess that you have a relatively small amount of money to invest, say $10,000, that you would be upset if you lost more than, say, $2,000 in a given year, but that you’re not going to need to get at the money quickly. If these sound roughly like your circumstances, I’d suggest putting $4,000 in an FDIC-insured 1-year CD and using the remaining $6,000 to buy a mutual fund or ETF that tracks the S&P 500 index. (Be careful when picking mutual funds — look at the percentage fees they take out to manage the funds, and any brokerage charges you pay to buy them. These can seriously eat into your profits and deepen your losses.)

   For most investments — anything riskier than a bank account — you are going to have to work with a brokerage firm, and your transactions will be handled by someone who, by law, is licensed to advise you about various aspects of investing. Talk to your stockbroker and don’t be afraid to ask him lots of questions if you don’t understand something. (But don’t think of him as your friend — he works for his employer, not you, and sometimes your incentives don’t match. Don’t make any decisions that you don’t fully understand just because he said they’d be a good idea.)

   If you earned the money you’re investing (as opposed to e.g. receiving it as a present), and you want to invest for college or for your retirement, there are special types of accounts you can use for those purposes which give you a break on taxes. Taxes are an important consideration — if you make a 7% return and pay 33% in taxes, you’re really making less than 5%. At 7%, your money doubles in 10 years. At 5%, it takes 15 years. Perhaps these numbers don’t sound so big, so make sure to stop and think about how long 5 years is.

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