Which investment is better

[lilly]

If you wanted to invest $50K and you have 25 years to cash out on your investment, which option is better for your money?  Which of the following options would you go with?

1. Whole life insurance (Receive benefits only upon death but distributions will be tax-free.)
 - By the way, life insurane agents, can you confirm if the whole life insurance benefit is only paid out on accident death, or on all types of deaths (accidental, suicide, natural, illness, etc).
2. Annuities and bonds (How much do you think the value will be after 25 years on a $50K investment with no further contribution?  What can a person expect to receive after tax after 25 years?  Is a person subject to the same tax penalties  as a regular IRA for bonds/annuities if they cash out before age 59.5?)
3. Real Estate (The gains on this investment really depends on the market and the area of the property... but overall, a person should expect to at least receive as investment in the property the value of the house after 25 years.)

Again, which investment option would you go with, and why?

Thanks.

[hmgROCK]

1.  It’s great if you start young, when the rate is low. Once you get old, the rate too high to be worthy. Life insurance, just like car insurance are not investment. Think about it, you are praying and hoping you get into a car accident and a payday. That don’t make sense.

2.  Right now bond since the 2008 crashes. Is pretty shtty.  With that $50k you probably lucky to make $10k interest,  the fed has been raising rates, so it should start to be good again. I would still hold.  As for the taxes.  Roth IRA are a good place to buy bond. All interest are tax free. You do this in others account, you might get hit with a state, local, federal tax

3.   Don’t let all these get rich quick, flipping home. Or I’m going buy property and rent it out etc.... get you.  Real estate is what causes the 2008 crisis. People who lose money than, just recently starts to recovery now, gain back what they lost,



My advice to you: is put it into a target date index
Check out this ticker:  SWYMX.  <<< I have about $200k in this
It’s 90% stock 9% bond and like 1% real estate
It’s really passive, no need to balance, no loading fee, expensive ratio is 0.08% dirt cheap
Target date are super easy and passive
Just autopay monthly and don’t even look at it
Gives you exposure to tons of stocks like apple, Facebook, amazon etc...

[hmgROCK]

Target date” index”


Hope that helps
You can google more about them
I think I might have miss a few key stuff
Been a long day

[hmgROCK]

i never got into real estate
i watch those shows too
about flipping houses

but daymeee it looks hard
you gotta be a handyman
gotta have electrical/plumbing/roofing/etc.... background

when i watch those show
they don't put in time work, that those eletrical/plumber do
they just focus on the before cost and after sell price

For example: 

1. bought house for $50k

2. probably spend about $50-100k smashing walls, paint, plumbing, electrician, closing fee and etc....

3. sell house for $150k

not a lot of profit, if you figure in everything

[hmgROCK]

real estate, rental property is such a headache too

if you get a bad tenant your property will probably end up being trash and damage

1. waking up at night to fix broken stuff
2. here in wisconsin, i see some owner having to shovel or pay people to come shovel the snow
3. getting loans from banks
4. dealing with bad tenant/might get sue by them etc...
5. closing fee and all that state and local fee that comes with it
6. apartment not have tenant= no generating income= you need to come up with the cash

just wayyyy too much work in real estate
i have a buddy who does this
his phone would ring like crazy
that's what happen when you become the landlord

[hmgROCK]

tenant not having money to pay their rent
or late on payment

now you have to come up with the money to pay the bank

[starchaser1989]

If I was young, I would put the investment in me, myself.  I would create a tech company, hired a few geeks and roll with it.  Do a start-up tech company. 

[DuMa]

Invest in the Chinese.  Tencent is huge market in China. They are going ipo soon.  You heard of Alibaba the Chinese Amazon?

Ticker tme but don't take my words for it. 

Go to realtor.com website to see a sample house listing.  Some will also show you what the owner payed for the house and what year.  A bunch of them I saw in my locals are flippers.  Not sure if they fix it up but they bought in 2017 and selling today for double the price.  Buy and give to a property management companies to handle it for you.  Sell whenever for a nice return.

Worst is you park your money where it does not make money for you.  Your money is treated like a slave worker, working overtime 24/7 for more money for you.  A day gone by and if your money does not grow is a day wasted. 

Park it offshore where their banks will loan it out to mafia n drug dealers.  The rates will be higher cuz these people do not qualify for any kind of loans.  Like Loan sharks.  For every $1000, $90 a week in interest.  Loan to Hmong people who has a weed farm.  You make the money without taking a risk of going to jail.  Then again, high risk is high rewards.  If they get busted, you lose everything. 

Like shark tank.  I'll loan with a 15% stake in the company for Life. 

Lots of ways but my way may not be the best in interest for the common person. 

[hmgROCK]

Invest in the Chinese.  Tencent is huge market in China. They are going ipo soon.  You heard of Alibaba the Chinese Amazon?

Ticker tme but don't take my words for it. 

i'm more interest in their solar companies stuff
green energy

western part of china is mostly desert
and they starting to install all these huge wind turbine and solar farm
it is HUGEEEEE
plus the government is promoting this intital big, lots of government $$$ backing

their people are getting tired of those smog and unbreathable air




the american people are too brainwash by trump climate change hoax laim
why won't you want clean air and water???

[Yebleng]

Invest in the Chinese. Money wise it looks good but you can forget about work and life balance working with these guys. They work too hard. Something that most westerns don't do

[YAX]

If you wanted to invest $50K and you have 25 years to cash out on your investment, which option is better for your money?  Which of the following options would you go with?

1. Whole life insurance (Receive benefits only upon death but distributions will be tax-free.)
 - By the way, life insurane agents, can you confirm if the whole life insurance benefit is only paid out on accident death, or on all types of deaths (accidental, suicide, natural, illness, etc).
2. Annuities and bonds (How much do you think the value will be after 25 years on a $50K investment with no further contribution?  What can a person expect to receive after tax after 25 years?  Is a person subject to the same tax penalties  as a regular IRA for bonds/annuities if they cash out before age 59.5?)
3. Real Estate (The gains on this investment really depends on the market and the area of the property... but overall, a person should expect to at least receive as investment in the property the value of the house after 25 years.)

Again, which investment option would you go with, and why?

Thanks.

1. is stupid because you can't use it till you die.
2. better option than insurance
3. If you don't own a home, this would be a great idea.  Buy the home, have a place to live, use the home, later sell it and collect the money.  If you don't buy a home, you'd end up paying the same amount, if not more, to rent a place to stay while you wait for option 2 to pay off.

[Yebleng]

Ya think I can live off $100k in Thailand/ Laos when I hit 50?

[lilly]

Thanks for all the thoughts and feedback, everybody.  Appreciate it.

[theking]

Ya think I can live off $100k in Thailand/ Laos when I hit 50?

Depends.....on you since you're asking about YOU...some can live off much less and some need much more...and some don't even need...

[lilly]

1. is stupid because you can't use it till you die.
2. better option than insurance
3. If you don't own a home, this would be a great idea.  Buy the home, have a place to live, use the home, later sell it and collect the money.  If you don't buy a home, you'd end up paying the same amount, if not more, to rent a place to stay while you wait for option 2 to pay off.

I agree.  Right now I'm debating between Roth IRA or Real Estate.  With Real Estate you're free to sell at any time but you'd have to pay tax on the capital gains, if there is any.  And, as hmgROCK stated, the tenants and the maintenance on the house can become burdensome and a headache.  But, the equity and potential profit in real estate is a bit more for certain than stocks.  I guess either way, if I can wait 20-25 years to sell the real estate/cash out on the Roth account, returns for both will do about the same in the end. I'm really not sure that I'd want to be landlord and always be on call if things break.  OK, Roth IRA, here I come.