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I need advise to productively invest 20,000!

Jul 10, 2013 by Lazaro from Fresno, CA in  |  Flag
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Peter C. Karp Level 20

Lazaro,

In order to best answer your question is to suggest you sit down with an advisor that can evaluate your entire financial picture and then make recommendations on the best use of your $20,000. A others have mentioned it may be prudent to reduce debt before beginning a savings plan. There are many types of investments available and you need to work with an experience financial professional to uncover your goals and objectives and point you in the right direction.

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Comment   |  Flag   |  Aug 07, 2013 from San Francisco, CA

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Hi Lazaro! Boy, you ask a loaded question today. There are many investments that can be productive, but they may not all be prudent. Depending on your situation, your best "investment" could be paying off debt or furthering your education. I recommend you spend some time with a fee-only advisor in your area to determine your needs and goals before investing. Good luck!

Comment   |  Flag   |  Jul 10, 2013 from River Hills, SC

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It is wonderful when we have the opportunity to let our money finally work for us. Congratulations! Investing is, I think, best understood as the tension of doing what is best for us financially and sleeping well at night. Have a sum on money, whether it is 20K or 2MM should require us to first determine what the end use of this money will be. Is it for retirement, to buy a car, to just have for a rainy day? Answering that question first will be a great guide to you for the best way to invest it. If, for example, you are planning on using this money in retirement and not until then, then exposing these funds to the ups and downs of the market as an investor would be my first choice. If however it is to buy a car in the next 5 years, using a bank product like a CD or a money market account would make more sense. The length of time till your need of the funds is critical. Long term = markets, short term = bank products. If you are looking at exposing the funds to the market, there are many choices and it is practically overwhelming. This may be a time where it would be valuable to contact an investment advisor. Make sure you work with someone who takes "Fiduciary Responsibility" with the decisions they make. Asking for that in writing will ensure you are working at the highest level of service. If you want to go it alone, do your research. A place like Morningstar.com should be helpful. Be careful not to put all you eggs into any one investment strategy or asset class. This can reduce your risk and increase the chances of you enjoying the ride.

Best of luck.

Comment   |  Flag   |  Jul 10, 2013 from Kingsport, TN

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Wow, how to answer that? There are so many factors that go into this. What is the investment goal? How soon will you need the money? Are you prepared to see your investment potentially lose value for a time, should that happen? Do you have an adequate cushion of cash reserves before you invest? Your best bet is to find a local Certified Financial Planner who will work with you to determine what your specific needs are.

Comment   |  Flag   |  Jul 10, 2013 from Bridgewater, NJ

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Lazarro, when you invest any amount of money with a financial advisor, they are going to want to know a complete understanding of who you are, your family situation is, what your goals are, what your earning potential is, what your timeframe is, what your tolerance for risk is, etc. They all contribute to determining what type of investment is best for you. While a friend or neighbor can tell you to invest in oil futures or gold or Disney, as a community, we take responsibility for recommending ‘suitable investments’ and would like to see you with a an overall financial plan.

With all that said, it is really not so difficult to find a suitable investment for you. A reasonably short conversation with a financial planner, preferably a Certified Financial Planner™, can determine your needs and objectives. Seek local help. Seek referrals from trusted friends, relatives, and co-workers for a financial planner in your area.

To be honest, $20,000 may be too low of a sum for some advisors to be interested in your area. There will, however, be someone out there that will give you good advice. You can also go to the Certified Financial Planner website where they have an outreach program…. Here is the link http://www.cfp.net/public-policy/consumer-outreach

Comment   |  Flag   |  Jul 10, 2013 from Delray Beach, FL

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