Where Is the Best Place to Invest Your Money?

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Deciding where the best place to invest money is will depend on how long the money will be invested for, your age and your ability to handle risk. Consider creating a diverse portfolio that includes stocks, bonds and real estate investments with tips from a financial adviser in this free video on investing and money management.

Part of the Video Series: Investments & Money Management Tips
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Video Transcript

Are you looking at the recent declines in prices in real estate, stocks and other areas? Hi this is Roger Groh with Groh Asset Management. If you have extra money one of the things that you might be thinking about is where should I put it? The big question for investing is always how long are you going to leave your money there? Are we talking a day, a year, ten years, 50 years, it will make a difference. If it's a day just leave it in the money market fund and don't fiddle with it. If its 50 years and you can handle lots of ups and downs that are inherent in stock markets buying high quality stocks with dividends would be a good move. If you're in the middle let's say in the 5 to 10 range it may be a blend of bonds to set up a foundation portfolio and then stocks is a smaller component to provide growth and perhaps some income through dividends. How much stock? It depends on how old you are. Remember stocks do go in half on average once every 10 years. You do the math if you have 100% of your portfolio in stock and it goes in half you're going to have a 50% loss. Can you handle that? So you can adjust that percent depending on how much risk that you can handle. Other than stocks what about real estate? Do you own your own house? There are many homes for sale now in the 100 to $200,000 range and it might be cheaper to buy than to rent and if your time frame is 20 years or 30 or 40 or 50 years you're likely to make money in that investment plus you own your own home. Hope that helps. I'm Roger Groh for Groh Asset. Thank you very much for spending time with me.


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