What's the best & easiest investment for $50K

[Baz]

Best meaning a decent return. (8% too much to expect?)

Easiest meaning easy process, if there is such a thing.

Important....this is for someone already retired not looking for a long term commitment. Just want somewhere to park some funds and get something out of it.

Thanks!

[fintstone]

IMHO, 8% is quite unreasonable without risk (other than paying off debt that has an 8% interest rate or more).

History says an S&P index fund will historically return that (close to 12%) over time...but possibly not short term. There is some risk. Treasury bills return over 4% with almost no risk...and one can avoid state and local taxes.

If I were retired and only had $50K...it would be in Treasury bills. It would return a little better than $2150 in a year and no worries. Investing in them is easy and can be done online.

[rfuerst911sc]

Baz there are online banks that give 4 % + on traditional savings accounts . I happen to use UFB but there are many . When I opened the account a few years ago it was yielding over 5 % . As of today it's 4.10 % . It is FDIC insured up to 250k . I also have a ATM card for small withdrawals . It is my play money account .

When I save up X amount of $ I deposit into my local bank savings account . Then I electronically transfer to the UFB account . If/When I need to do a large withdrawal I just do an electronic transfer into my local account and get the funds in person . It works for me . Just do a search for high yield savings accounts and you will see a variety of accounts available and their current rates . I like the savings account because I don't have to leave the money in there for 9 months or similar like a CD .

[Rot 911]

If you don’t mind, some risk, go with the stock market. If you want safety, go with short term, treasury bills. They are still paying over 4%.

[Scott Watkins]

SWPPX if you want to invest.
SWVXX to park.

[MBAtarga]

Live Oak Bank has 4.4% on 12 month CD's.
My 501c3 org has 6 CD's with them.

[Bill Douglas]

There's a horse. 3rd race of the day. I'll meet you outside of the bar to give you details.

[cabmandone]

Easiest probably Money Market at around 4%, Same with CD's and T Bills. To hit 8% you're gonna have some risk involved.

[Bob Kontak]

Originally Posted by cabmandone

Easiest probably Money Market at around 4%, Same with CD's and T Bills. To hit 8% you're gonna have some risk involved.

He did not say he was skeered.

Right now, I would say moderately aggressive mutual funds with the DJT at the wheel.

[LWJ]

1. Pay down debt
2. Last I checked I was getting 4- 5% on a savings account. It has dropped with the Fed rates a bit.
3. Stock market S&P fund should yield better but has risk.
4. Maybe some sort of Bond play? But I am talking out of my ear on that. Never done it.

Things start to get sketchy after the above. Risk goes up along with return.

[cabmandone]

Originally Posted by Bob Kontak

He did not say he was skeered.

Right now, I would say moderately aggressive mutual funds with the DJT at the wheel.

He did ask for easy though... and CD's, Money Market and T bills are pretty easy! And there's access to the money without many hoops to jump through.

Me, I'd slap it all on AMD and let it ride a few months.

[Shaun @ Tru6]

80s Honda Interceptors

[MBAtarga]

NVDA stock - buy it about 12 months ago - you'll be very happy! Even though it is down > 10% the past few days!

[William930t]

If you are looking for higher returns without much risk...

I have a portion of my portfolio in JP Morgan Premium Equity Fund, symbol JEPQ. I think was originally reserved for the bank's wealthiest clients. The monthly dividends are great and there's no NAV price erosion. The fund is popular and well managed, plenty of online discussion on investment forums.

JEPQ is designed to provide distributable income through a combination of dividends and options premium (covered calls). In return for the options premium, investors may forgo a portion of the market’s upside. Options premium generated can vary dependent upon market volatility; as volatility increases, the potential for incremental income and upside also increases.

12-month rolling dividend yield of 9.93%
30-day SEC yield of 12.42%

I am averaged in at $53.00, so ETF price is up a little (stable). I love the monthly dividends, a real bonus. No long-term commitments either, cash out whenever.

[Dixie]

They cleared oodles off their $50,000 investment.

[KFC911]

Lots of ways to get 4%+ safely ... CDs out to 5 yrs (thru Fidelity) ... I keep my elderly parents in these... laddered CDs. Safe and liquid ....

Bitcoin & stocks & gold if ya want a bit more risk

[pwd72s]

Originally Posted by fintstone

IMHO, 8% is quite unreasonable without risk (other than paying off debt that has an 8% interest rate or more).

History says an S&P index fund will historically return that (close to 12%) over time...but possibly not short term. There is some risk. Treasury bills return over 4% with almost no risk...and one can avoid state and local taxes.

If I were retired and only had $50K...it would be in Treasury bills. It would return a little better than $2150 in a year and no worries. Investing in them is easy and can be done online.

Gets my vote for best answer so far. Only thing I could add is that if this retiree lives in Florida the tax advantage of treasuries is not a factor.

[Alan A]

Everything was up last year.
What timeframe is the 8% (pa I assume) supposed to be over?
Do they have other emergency funds? As in if they invest and it drops can they wait it out?

[Baz]

Thanks for all the input so far. Very informative! Appreciate it VERY much!

[wildthing]

Alto by BMO.