[harveymasons]

Ok, so lets say you are given 32k to invest freely in any way you please, but by Aug 31st of 2007 the original 32k must be paid back in full...

Ideas, suggestions??

Thanks in advance,
Harvey

[RickJ]

There are tons of options depending on how knowledgeable you are in the various investment options.

If it were me I'd pick a semi-aggressive Mutual Fund shooting for about 12% on it.

... or maybe look for a junker house to buy and fix up and re-sell.

... just a couple ideas for you...

[CaptainForest]

If you want something very safe, government bonds, GIC's, guaranteed interest and you will for sure have your 32,000 back by Aug. 31/07.

But, if you want to take some risk, there is a chance to earn a much higher return.

The question here is what is your risk level?

What happens if you only get back $30,000? Can you live with that? $15,000?

Willing to take the risk for a higher possible return?

Each person is different, you must decided where on the spectrum of risk you fall.

[harveymasons]

OK, here's the situation, my bank is willing to give me 32k available in cash with a fixed 0% interest rate for a year. The money is due and payable by closing of aug. 2007 statement.

So while I am tempted to try and get say a 12-14 return w/ some mutual funds I absolutely need this money to pay back in the end. I see that I can do a year cd for about 5.5% That would probably get me around 2k right?

I am open for more ideas if anyone has any...

Kind regards,
Harvey

[CaptainForest]

A CD at 5.5% for 1 year on $32,000 will give you:

32,000 x 0.055 = $1,760.

If it were me, that is what I would invest the money in.

But, if you want to take a higher risk, there are other options available.

[harveymasons]

Thanks captainforest. Could you suggest something a bit more risker but still safer then stocks? Any specific mutual funds you think would bring say 6-10% from now till aug 07?

The highest year cd I can find is 5.63 which is pretty good.

Thanks in advance,
Harvey

[walt17]

Harvey,
If you must have the full 32k back Aug 07 a CD is about your only option. Stocks, mutual funds and most other investments carry a risk. The greater the potential return, the greater the risk.

Walt

[harveymasons]

Thanks guys. I found some vanguard funds doing unbelievable right now, but again with my luck they will tank if I buy them.

I suppose I should go with the safe cd and stop being greedy, after all it is free money...

Thanks guys,
Harvey

[CaptainForest]

I agree with walt17.

No mutual fund is a “secure” investment.

While most will not tank, it is all about the risk.

Since this is “free money”, I would invest it in a CD.