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BENEDICTI · Joined: 15 Jul 2004 Posts: 7

What is the safest and most profitable way to invest >$200K, besides stocks, bond, and money market?We sold our property in VA and overseas for over $200K, and currently live in Ann Arbor, Mi, where the tax on property is too high, thus making investment in real estate outside the option. We are risk averse, and would not consider money market, stocks or bonds and the like. Besides these investment options, which any the other safest and most profitable business to invest this money that currently sits in the bank for an interest of 5.25%? Currently, we have a mortgage on our house, and the rate is 6.5%. We can pay off our current house with the money in the bank, but unsure whether this is a wise decision, if there are other ways to more profitably invest the money. Suggestions and answers are appreciated.

newjerseyguy3852 · Joined: 18 Jul 2004 Posts: 2

How safe is safe? You say you want "safer than money markets" but high return. Higher return comes with higher risk. About the only thing safer than a money market account is insured bank deposits.

JSAL21 · Joined: 21 Jul 2004 Posts: 3

instead of investing in actual real estate. try REITs. Real Estate Investment Trust. These are like real estate mutual funds that are diversified but they may not be safe. I returned 32% last year and 42% the year before. I have solid research tools at my disposal and monitor these holdings very closely. Why are you so against stocks. try iShares, safe, easy, low manangement fees, most are index funds that will do pretty well.

redwine · Joined: 24 Jul 2004 Posts: 6

money market is a risk averse product, (most of the time). If you are truly concerend, buy treasury bonds. They have an effectively zero default chance.

pietlul · Joined: 27 Jul 2004 Posts: 5

gold.

brucew · Joined: 30 Jul 2004 Posts: 5

Real estate Investment in Costa Rica has been paying outstanding returns for many years. I would suggest a vacation rental condominium. You earn both rental income and appreciation which is not taxable in Costa Rica. http://www.costaricarealtyone.com

JimU · Joined: 02 Aug 2004 Posts: 4

simple answer, Trust Deeds!A private investor funded Deed of Trust could earn up to 13% paid monthly, the money secured by a property at 60% of its value with the right of forclosure if the borrower should default on the note (Ex. not make payments).You can also charge points to the borrower and get a prepayment penalty also.

Draper · Joined: 05 Aug 2004 Posts: 4

It sounds like you are VERY risk adverse. If I were you, I'd pay my house off. That way you own it free and clear and it opens up more options for you - both today and down the road.Most people will say that you don't want to pay it off because you lose the tax-deduction. Personally, I'd rather pay taxes today and put an extra $800 in my pocket every month rather than pay a $1,100 monthly mortgage just to save $300 a month in taxes.Other options:Fine artCollectables (like baseball cards from the 50s and 60s)Buy into an existing business (after you have their books looked at by an independent CPA)

Thomas6510 · Joined: 08 Aug 2004 Posts: 4

Money markets are pretty darn secure and will keep up with inflation. If you think that is to risky, try a CD or geez, put it under your bed.

voluntarheel · Joined: 11 Aug 2004 Posts: 7

If you are too risk averse to bonds I'd suggest treasuries (also known as t-bills), but you aren't going to get a high return. Nothing will give you a high return that doesn't have the ability to lose you money as well.But t-bills and the bank are about as safe as it gets.

JimD · Joined: 14 Aug 2004 Posts: 3

I invest in Tax certificates in Florida. At a rate of 18% a year, these certificates are government backed and WILL be paid or you will end up with the houses at a fraction on the market value. As far as safe, i can't think of any thing safer than the taxing system in the U.S.http://www.yellowletterscomplete.comI use this system to find my tax certificates.