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Hello,

I want to invest considerable large amount for long term say 20 to 25 years. I do not need the money in between. My initial thought was to invest in real estate but I am not leaning towards it because of the expenses and hassle of maintenance. What are good funds to invest in while reducing taxes. Is it realistic to expect more than 10% in invested in funds?

Thanks

For next 25 years ?

Without knowing your...... age, risk ( volatility ) tolerance, intended use after 25 years, Tax situation, your other investments...and so on ?

Consider....VT.

rajesh5;591296Hello,

I want to invest considerable large amount for long term say 20 to 25 years. I do not need the money in between. My initial thought was to invest in real estate but I am not leaning towards it because of the expenses and hassle of maintenance. What are good funds to invest in while reducing taxes. Is it realistic to expect more than 10% in invested in funds?

Thanks

No one can predict future returns. But, one investment research firm 'Research Affiliates' thinks that Emerging equity offers highest expected returns over next 10 years at 7% real which is about 10% nominal. See link below for asset allocation chart: [URL="http://www.researchaffiliates.com/AssetAllocation/Pages/Core-Overview.aspx"]

http://www.researchaffiliates.com/AssetAllocation/Pages/Core-Overview.aspx[/URL]

I am okay being aggressive in my investments. I want to leave this money as inheritance to my kids. So, I do not know the intended use after 25 years. I do not have any major investments other than 401k and IRA.

This book has the simple and best investment advice: http://www.amazon.com/Millionaire-Teacher-Wealth-Should-Learned/dp/0470830069

Invest in the following Vanguard Index funds:


Total Bond Market Index (VBMFX)
Total International Bond Index (VTIBX)
Total International Stock Index (VGTSX)
Total Stock Market Index (VTSMX)

Free ki advice hai, lena hai to lo nahi to jane do.

rajesh5;591296Hello,

I want to invest considerable large amount for long term say 20 to 25 years. I do not need the money in between. My initial thought was to invest in real estate but I am not leaning towards it because of the expenses and hassle of maintenance. What are good funds to invest in while reducing taxes. Is it realistic to expect more than 10% in invested in funds?

Thanks

As one of the other posters commented, you have not provided much details beyond just saying that you want to invest a "considerable" sum of money. Here are some questions you should be thinking of:

what percent of your total portfolio is this sum of money you want to invest? You mention that you have IRA and 401K - how do the amounts in those compare to this? What investments do you have in your IRA and 401K? etc.

If you really just want some high-level advice on possible investment choices, then take a look at this article.
http://www.etf.com/sections/blog/21559-cheapest-etf-portfolio-gets-even-cheaper.html?showall=&fullart=1&start=2

It lists a model portfolio that is diversified across 6 different investment categories. Best part is that the expense ratio is ridiculously low (annuual fees of only 0.09 percent or $9 per $10,000 invested)

Your other question was about taxes. This is again dependent on a lot of other factors. But high-level, if you really stick to your plan of not touching this money for 25 years and leaving it to your kids, you will not have to worry about taxes. (They might have to pay taxes though) :))

rajesh5;591296Hello,

I want to invest considerable large amount for long term say 20 to 25 years. I do not need the money in between. My initial thought was to invest in real estate but I am not leaning towards it because of the expenses and hassle of maintenance. What are good funds to invest in while reducing taxes. Is it realistic to expect more than 10% in invested in funds?

Thanks

There is probably no investment that can be guaranteed for 25 years.

True investments like Walmart, Microsoft, etc have been around for that period and doing very nicely. IBM was a solid investment in 60s and may be not now.

You may get lucky but it is not guaranteed.

Choose what looks good now and diversify.

You need to keep going back and taking a look every now and then and certainly every year.

I Think invest in Real Estate market.