4 answers
Isaiah
Student
Utica, New York
2
Questions
Asked
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How Do I maximize my profit and receive bonus revenue from investing. What company would give the head start ?
Lets say I Have over 10,000 inside of my account and my main goal into Building a career is investing, Making the money back we spend plus 20% What would be the Smartest and fastest way of creating my consistent monthly income ?
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4 answers
Jaclyn Jones
Associate in Economics and Analytics
15
Answers
Washington, Washington
Updated
Jaclyn’s Answer
Unfortunately there is no quick and easy answer to this. I can guarantee you that if it was easy, everyone would be doing it and those that knew the answers likely would not share this insight into the future. Investing is risky and I would think of it similar to gambling. You should not invest money that you need in the short term for rent or food. Investments are more long term where you are able to ride out the market. The safer investments would be like the S&P500 instead of individual stocks that will be more volatile. There are definitely master investors like Warren Buffet, but even they can make mistakes because it is unpredictable. There are very specific and technical calculations that go into picking a stock and most try to average at 8% growth. 20% would be incredibly difficult especially as a beginner.
Thank you for giving me advice.
Isaiah
Alexander L. Yu, MBA
Assistant Vice President, Institutional Credit Risk
4
Answers
San Diego, California
Updated
Alexander L.’s Answer
Short answer: you'll likely need more than $10,000 in capital.
To Jaclyn's point, investments typically correlate higher returns with higher risk of loss. Let's say your living expenses are $40,000 per year. With $10,000 in capital, you will need a 400% return every year in order to sustain your standard of living. Achieving this level of return consistently over a number of years without losing all of your money is next to impossible (you'd have people contacting you nonstop to invest their money for them if you did manage this!).
However, if you increase your capital to $1,000,000 through saving from your job and passively investing the excess over decades, you would only need a 4% return every year in order to afford the $40,000 in living expenses needed. This level of return is much more realistic and has a much lower potential for loss.
Many folks who retire in their 50s, 60s, or even beyond have invested and saved a substantial nest egg, and can afford to sustain a modest standard of living solely based on income generated from their investments. You're still a student and still young--don't worry, you've got plenty of time ahead of you.
Alex
To Jaclyn's point, investments typically correlate higher returns with higher risk of loss. Let's say your living expenses are $40,000 per year. With $10,000 in capital, you will need a 400% return every year in order to sustain your standard of living. Achieving this level of return consistently over a number of years without losing all of your money is next to impossible (you'd have people contacting you nonstop to invest their money for them if you did manage this!).
However, if you increase your capital to $1,000,000 through saving from your job and passively investing the excess over decades, you would only need a 4% return every year in order to afford the $40,000 in living expenses needed. This level of return is much more realistic and has a much lower potential for loss.
Many folks who retire in their 50s, 60s, or even beyond have invested and saved a substantial nest egg, and can afford to sustain a modest standard of living solely based on income generated from their investments. You're still a student and still young--don't worry, you've got plenty of time ahead of you.
Alex
Alexander L., thank you!
Isaiah
Jed Lee, MBA
Financial Auditor
3
Answers
Westfield, Indiana
Updated
Jed’s Answer
Isaiah, this is a great question, and awesome that you are very interested in the finance world.
I wish there was a quick and easy answer, but this question cannot be answered without answering some of these questions.
1. How long are you expected to receive the 20% ROI? Within a year? Within five years, or Within your lifespan?
2. How much risk are you willing to take? In other words, how can you or are you okay to lose out of the $10,000 if everything doesn't go the way it should?
3. What kind of investment strategy would you like to pursue? Financial Products VS. Real Estate VS. Collection? Based on your comment, it sounds like you are interested in investing in companies by purchasing their stocks. Even when it comes to common stocks, there are two general investors: Value Investors VS. Speculators. While everyone can form their own opinion and speculate companies market performance, only specialized/educated individuals can form a solid intrinsic valuation of company based on the economic market and the financial statements.
Depending on your answers, different investment strategies can be formed to achieve your goal. For now, it might be very beneficial for you to pursue a finance career (Getting a finance degree and working at a investment company) for a little while until you have a good sense of what investment strategies will work the best for you! Good luck! :)
I wish there was a quick and easy answer, but this question cannot be answered without answering some of these questions.
1. How long are you expected to receive the 20% ROI? Within a year? Within five years, or Within your lifespan?
2. How much risk are you willing to take? In other words, how can you or are you okay to lose out of the $10,000 if everything doesn't go the way it should?
3. What kind of investment strategy would you like to pursue? Financial Products VS. Real Estate VS. Collection? Based on your comment, it sounds like you are interested in investing in companies by purchasing their stocks. Even when it comes to common stocks, there are two general investors: Value Investors VS. Speculators. While everyone can form their own opinion and speculate companies market performance, only specialized/educated individuals can form a solid intrinsic valuation of company based on the economic market and the financial statements.
Depending on your answers, different investment strategies can be formed to achieve your goal. For now, it might be very beneficial for you to pursue a finance career (Getting a finance degree and working at a investment company) for a little while until you have a good sense of what investment strategies will work the best for you! Good luck! :)
Larry O
Accountant
6
Answers
New York, New York
Updated
Larry’s Answer
I am curious as to how old you are and what level of education you are at. Your facts do not correlate with a business, but rather, managing a small, beginning nest egg. To be straightforward, there are VERY, VERY few professional investors able to compound returns at 20%. And before that, it is VERY, VERY difficult to get to a position to have people pay you to manage their money (or even work for someone who manages other people's money).
My advice, with the facts you describe, would be to try to get a job with some sort of investment firm (not easy to do). While doing that, you should invest your $10,000 to build a track record of managing money to have something to show someone down the road who may want to hire you. That is after you have obtained a degree in finance/economics as well as at least starting to work towards a master's degree in those fields.
My advice, with the facts you describe, would be to try to get a job with some sort of investment firm (not easy to do). While doing that, you should invest your $10,000 to build a track record of managing money to have something to show someone down the road who may want to hire you. That is after you have obtained a degree in finance/economics as well as at least starting to work towards a master's degree in those fields.