Invest To Financial Freedom – Ways To Invest when you have $100,000? Balance Ways Part 5
This is the chapter 4 for my series “Ways to Invest when you have $100,000?†In chapter 4, I will share with you my second suggestion of balance ways to invest your $100,000. This is the part 2 for this Chapter. Here is the part 1
PS: What is balance ways? I think I should explain further the word “balance†that I use here. Balance ways mean ways to invest your money under a balance rate between the returns and the risks of the investment. The risk is higher than the conservative ways that I share with you in my last chapter. However the returns are higher too.
Suggestion 2: Balanced Fund + Pure Stock Fund + Money Market Fund
So my personal suggestion is :
Invest $20,000 in money market fund and the remaining $80,000 in Balanced Fund and Pure Stock Fund. Of course, you should invest more into the “conservative but work actively†fund - Balanced Fund. Since it has a balance feature between risk and returns, if you invest more in this fund, your total investment will become more secure and more riskless.
The balanced Funds have the ability to get benefits from stock market, Bonds market and money markets. When stock market is hot, they will invest more in stock market. But if anything happen to the economy, they will change back to bonds market and money market. So this fund is suitable for you to make it as a backup for your total investment.
So since you invest $20000 into Pure stock fund, and this money will be your money that work actively and attack those market that come with higher returns and higher risk. However, since it is invested in the pure stock fund and this fund is mainly concentrate on stock market, you are advised to pay attention to the stock market and change your strategy according to the market trends.
According to some expert, By using this kind of balanced ways to invest, you can easily get 10% or more annually returns interest rate.
Anyway, this is just a reference. You must learn and make your own investment strategy.