What would you recommend for an aggressive investment strategy?

I'm 50 years old and I have $10,000 to invest. As I understand it, I can't retire until I'm 67 so that's another 17 to 20 years for investing purposes. I'm looking at putting the $10,000 into an aggressive high gross investment strategy. What kind of advice do you have for me so I can execute this investment? I'm also trying to learn and understand investing. Would you recommend I can invest and control it myself, as opposed to having to go to other entities to make it happen?

Investing, Retirement Plans, Lifestage Based Planning
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May 2017
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Hello,

If you have the knowledge, time, and energy to invest on your own, by all means, do it yourself. You may find the joy and thrill from this experience.  On the other hand, I am a little concerned from your statement that you needed the advice to execute a buying order. 

So, here are some questions you need to ask yourself before commit to that buying strategy: 1)If I can’t get my $10k back in one month, 6-month, or a year from now, what would I do? 2) Do I need that $10k for any contingency plan?  3)Why do I pick this particular fund?  Is there another fund with similar goals/income but less expensive or having a more experienced management team? 4) What about the tax?  If this $10k is in a taxable account, you have to pay capital gain/dividend tax every year? Should you pick up a fund that may be more tax-efficient?

All of those questions are simple enough, but your answers will give an advisor a glimpse of your risk profile and your current finance.  For example, your answer to the first question will tell a professional how much risk you can take, which immediately translates to if the “aggressive high gross income” strategy is suitable for you.  The second question asked about your emergency fund.  If you don’t have a safety net for six months living expenses, a professional may suggest using the $10k for that purpose.  The third question tests your investment knowledge of how much you know about this particular fund and your research to do the comparison to better your future return. The last question reminds you to be mindful about the tax consequence as the tax man may take a big chunk of your return at the end of the year.

So, you see it’s not easy to just invest $10k.  If you become uncomfortable of investing on your own or need a guiding hand, ask a professional’s advice.  You don’t have to let someone manage for you, but you could seek a periodical review to make sure you’re on the right track.  You got the best of both worlds.  Best!

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