Total noob question - if you had a million dollars to invest ...

[ratsinvest]

So, let's assume you have a million dollars to invest. You are looking at doubling that money over the next 5 - 7 years. My maths says that at 10% net you'd double after 7 and at 15% you'd double after 5.

How would would you go abouts investing this money given what you know about financial markets? I am hoping for non-noob answers. :-)

BTW, I don't have a million dollars to invest. :-(

[Snow Leopard]

Go to the Crown Casino in Melbourne.

To the left of the pokies nearest the food court are three roulette wheels.

Keep you eye on the middle one and then look for when the tall croupier with the pony tail comes on duty.

If she has a blue band round her pony tail, let her see your copy of the 'Calvin & Hobbes: There's Treasure Everywhere', then bet $100,000 a go on black.

When you have made $1,100,000 in profit. leave with $1,000,000 of it.

Best Wishes
Paper Tiger

[ratsinvest]

Go to the Crown Casino in Melbourne.

To the left of the pokies nearest the food court are three roulette wheels.

Keep you eye on the middle one and then look for when the tall croupier with the pony tail comes on duty.

If she has a blue band round her pony tail, let her see your copy of the 'Calvin & Hobbes: There's Treasure Everywhere', then bet $100,000 a go on black.

When you have made $1,100,000 in profit. leave with $1,000,000 of it.

Best Wishes
Paper Tiger

You seem like a smart guy. Can I borrow a million bucks off you?

[huxley]

Go for credit in the straight world
Look a dealer in the eye
Go for credit in the real world
Won't you try?

I got some credit in the straight world
I lost a leg, I lost an eye
Go for credit in the real world
You won't die

Instant credit in the straight world
Leaving money when you die
Lots of credit in the real world
Gets you high.

[ratsinvest]

Go for credit in the straight world
Look a dealer in the eye
Go for credit in the real world
Won't you try?

I got some credit in the straight world
I lost a leg, I lost an eye
Go for credit in the real world
You won't die

Instant credit in the straight world
Leaving money when you die
Lots of credit in the real world
Gets you high.

Amen to that brother.

[h2so4]

So, let's assume you have a million dollars to invest. You are looking at doubling that money over the next 5 - 7 years. My maths says that at 10% net you'd double after 7 and at 15% you'd double after 5.

How would would you go abouts investing this money given what you know about financial markets? I am hoping for non-noob answers. :-)

BTW, I don't have a million dollars to invest. :-(

Make smart investment decisions.

[huxley]

Have you looked into mortgage backed securities?

[FIsaver]

It doesn't match to your rules of 'doubling' or requiring a high rate of return but I would be putting it into a low cost index fund say the S&P500 has returned 10%pa on the historical average (before inflation). This is some what liquid. P2P - Harmony in NZ is having a good ride of return for investors and as we move into a period of lower than average returns I wonder if P2P is getting a big boost at the moment. The one thing that worries me is these loans are not secured nor are they liquid if you need access to it.

Bar the 'A' investments Harmony is getting high returns >15% if you can take the risk.




average return PY
average loss PY
average total return PY


A
11.87%
0.17%
11.70%


B
15.15%
0.53%
14.62%


C
20.86%
1.20%
19.66%


D
27.25%
2.00%
25.25%


E
35.20%
4.28%
30.92%


F
39.63%
10.62%
29.01%

[Aaron]

I would have a million in term deposit (or gold bars if I could dig a big enough hole in my back yard) and double my money buying shares at half price after the value of the stock market halves in the next financial market crash.(apparently happening sometime in 2017)
Or I could see inflation erode my $1mill value by 3% a year or more if inflation really takes hold in which case I become poorer.(maybe not so much with gold bars)

Why not invest in Auckland property at 20% a year you will double your money in 3.6 years. With eyewatering amounts of leverage you could shorten this time span considerably.

[huxley]

I would have a million in term deposit (or gold bars if I could dig a big enough hole in my back yard) and double my money buying shares at half price after the value of the stock market halves in the next financial market crash.(apparently happening sometime in 2017)
Or I could see inflation erode my $1mill value by 3% a year or more if inflation really takes hold in which case I become poorer.(maybe not so much with gold bars)

Why not invest in Auckland property at 20% a year you will double your money in 3.6 years. With eyewatering amounts of leverage you could shorten this time span considerably.

"No one has any idea when Auckland's housing bubble will burst, because the cold rational logical part of economic science was left in the dust years ago when the driver of low supply high demand became turbo-charged by speculators and the added complication of foreign buyers."
http://i.stuff.co.nz/taranaki-daily-news/opinion/69894825/roger-hanson-boom-and-bust-cycles

Maybe you should spend the $1m on a lavish lifestyle? Should be a lots of fun and you'll help generate some economic activity. Gotta be better than pumping up the inflated Auckland housing market?

;)

[peat]

So, let's assume you have a million dollars to invest.

Buy half an Auckland house? :p