Ask HN: Best, Safest Interest-Free Ways of Investing 100k?

[ComputerGuru]

Hi,

Assuming one is making enough from a startup to put aside all income from a day job, but not yet ready to quit the day job, what are some recommended ways of investing that money?

The catch is, the investment should be interest-free. As far as my limited knowledge in investments goes: Stock market is OK, bearer bonds are not. Micro-investments are based on interest, so they too are not allowed.

That said, what are some of the safest and some of the best ways to invest? Obviously 100k isn't a "fortune" but it's not a small about either. Split it in half and go risky with part and safe with other? What's the return on the "safe" investments over how long?

I guess I'm all questions here, would appreciate any help you guys could give :)

[secret]

I'm assuming you mention interest-free for religious reasons. If that's the case, there are mutual funds designed to comply specifically with various religious requirements (meaning the only invest in appropriate companies and revenue streams, etc) that you may want to look into. I don't know any names off the top of my head, but sometimes they go by "virtue funds."

[ehsanul]

Take a look at the permanent portfolio.

http://crawlingroad.com/blog/2008/12/22/permanent-portfolio-... http://crawlingroad.com/blog/tag/permanent-portfolio/

[rmc]

You've said you don't want interest, so you're not Why not invest in yourself? Go on a nice holiday? Buy a house? Get a facelift. Spend the money to make your life better?

Or invest in some 'social capital'. Buy your parents/siblings a house, or a car. If times go bad, you'll be able to call in some favours.

[byoung2]

These are all excellent questions to ask a financial advisor. Go to your bank and tell them you have 100k to invest, and you'll get all the answers you need. They'll set you up with a financial advisor who can help you map out a personal investment plan that meets your needs.

[ozres1]

Given your restriction, I'd say stocks. But stocks are inherently risky. And unless you're willing to put in the effort, I'd recommend you stay away.

Further, many companies have cash and some of it will be earning interest. They will also hold bonds of sorts which would also be earn interest. They may raise money in the bond market which would require the company to pay interest. This would severely restrict the amount of companies you can invest in.

Mutual funds typically don't do very well, not when consideration is given for their fees and their performance benchmarked to the S&P.

I would buy commodities like gold and silver except that they're at an all time high. And what your timeframe here is important.

[adammichaelc]

Kaching.com is pretty cool, allows you to get 100% transparency on the track record and day-to-day moves of different successful investors. You could put a portion of it following an investor whose strategy aligns with your goals.

Why no interest? If you put a portion of the money in tax-free municipal bonds (which technically pay you interest) it'd be a good place for generating a decent yield while keepng your balance relatively safe.

There's always an annuity too, which is where you pay a lump-sum for a guaranteed income for life, which is dependent on a bunch of factors (your age, current interest rates, type of annuity, etc.)

good luck!

[rrhyne]

Take a portion and buy actual physical gold and silver.