Best place to invest money

Where is the best place to invest money? That is the million dollar question in the world of investments and as of now has no definite answer. You can read every article in every magazine and watch every salesman on every channel and read every book in every library and every one will give you a different answer to where is the best place to invest money. Everybody in world, whether they are an accredited investor or not, has there own opinion on the best place to invest money. 20 years ago you might have had a better chance to know the best place to invest money because there were not as many investment areas as there are in today's marketplace. So, putting all this mayhem aside, where is the best place to invest money?

When it comes to investing the good, old fashioned, traditional answer regarding the best place to invest money is the stock market. The reason being that the stock market is the only investment area where you can see you money multiple ten fold over the course of a week, thus making it seem to be the best place to invest money. Also, you don't need to have large amounts of cash on hand to be able to get involved in the stock market. Many people will start out getting involved with penny stocks, which can be purchased as low as 1 cent. Therefore, if you invest only $20 you will still be responsible for 2,000 shares. Now, as a fair warning, when you invest in penny stocks you can't expect big returns because typically they are not set up to yield high returns. However, they are still a great way to get your feet wet with the stock market and still be able to make a profit, thus providing another reason the stock market seems to be the best place to invest money. However, don't forget that the stock market is the poster child for high risk/high reward investments. While you can receive big returns there is also an extremely high risk that comes with having money tied up in an investment that can multiple ten fold over a week and then go bankrupt the next day. The stock market has been known throughout history to crash, causing investors to be out millions of dollars. Also, there is no real way to know when a crash is coming. That is why the stock market is not the clear front runner as the best place to invest money. In summary, as notated before, the stock market is the ultimate high risk/high reward investment. So before you play the stock market the question you have to ask yourself as an investor is how do I view the best place to invest money?

Now, if your answer to the previous question is that you view the best place to invest money as the safest, surest investment, then instead of looking to hit it rich through the stock market place your money in real estate investments. Real estate investments have traditionally been looked upon as safer investments due to the fact that historically property values are not exposed to drastic crashes like you see in the stock market. In fact, over the past century 93 years have seen property values increase. Due to everybody wanting to live at the beach or in the big city, the bigger markets such as California, Florida, and New York have seen the biggest increases in value over the last century. One thing that all investors mostly agree on is that when it comes to real estate the easiest and most profitable way to get involved with real estate investments is by "flipping" houses. In this case people will buy homes that are in foreclosure directly from the mortgage lender. Due to the fact that the lender is not making any money on a house that is not being occupied they will look to fill the house as soon as possible. This allows the investor to be the strong hand in the negotiation process. An investor can purchase the property below market value, sometimes up to 40%, which means that the property already has equity. Now, the investor can turn around and sell the property at full market value and make a profit. Seems too easy doesn't it? Well it is perfectly illegal. There are no laws against "flipping" houses. So with "flipping" houses seeming so good, how can real estate not be considered the best place to invest money? Well, first off, it is not cheap. You may be able to make a lot of money once you get that first house out of the way but in order to get that first house you have to have a lot more capital in hand to be able to start investing in real estate as opposed to the stock market. In other words, there is no such thing as penny stocks in real estate. Also, while there is an unlimited amount of stocks available there is only a certain amount of real estate available. Finally, real estate investments require more hands on work and usually take longer to account for the same amount of profit that a stock can achieve. So does that answer your question as to why real estate is not automatically considered to be the best place to invest money?

So going back to where we started, where is the best place to invest money? I don't think I answered that clearly because I don't believe there is a clear answer. I've read every article in every magazine and watched every salesman on every channel and read every book in every store and all I know is that nobody knows what the answer is to that question. I guess everybody has different needs and different wants. So where is the best place to invest money? Beats me, but if you find out please let me know.