Where Should Invest My Money

I have saved $300k. Where shall invest this money?

Most investors know more about investing in stocks than they do about bonds. In fact, it's pretty rare to see individual investors investing in bonds, unless they invest through a managed investment strategy. Investment managers typically include a bond allocation with every portfolio that they design and manage. If 80% of your portfolio is invested in stocks, and 10% is held in cash (emergency fund + investment cash), you'll have 10% left over to invest in bonds.

If you're interested in investing in bonds as a do-it-yourself investor, or you just want some information as to what's involved, you need to understand that only patience can build wealth in the long term for an investor..

US Treasury Bonds: Most popular with institutional investors thes bonds are like pension funds. The 30-year US Treasury Bond has a current yield of 2.99% APY. Treasury bonds can be purchased through a broker or a bank, but you can also buy them commission-free and also hold them at Treasury Direct.
TIPS: Treasury Inflation Protected Securities, commonly known as TIPS, have a much lower interest rate than similar term Treasuries, even with inflation adjustments. I hesitate to recommend these. Also, while the inflation adjustment is credited to you annually, you don't receive it until you redeem the bond on maturity but you're paying tax on it.
Municipal bonds. These bonds have comparable yields to Treasury bonds, but they also are tax exempt for federal income tax, and for income taxes in the state that issues the bonds. If you have a combined federal and state marginal income tax bracket of 40%, then a 3% yield on municipal bonds will provide an equivalent return of 5% on a taxable investment.You can purchase them through brokers.
Corporate bonds. These are bonds issued by corporations, and they typically come in denominations of $1,000. Yields on corporate bonds vary tremendously since each company has a different risk rating from the rating agencies such as Standard & Poor's, Moody's and Fitch.*
Bond funds. For most investors who aren't familiar with bond investing, the best way to invest is through bond funds. Each fund is a portfolio of various bonds within a certain category, like government, municipal, government, or corporate bonds. You can also invest in bond funds that have a certain maturity, such as one, five, or 10 years. These funds are also typically included in professionally managed portfolios.

There is also interest rate risk, and that should never be ignored. Bonds with terms of 20 years or more behave much like stocks, but their price swings are determined by interest rates. And that includes US Treasury bonds. Rising rates mean falling bond prices!

Anyways, I made a fun little investing quiz to help my students and new investors to identify exactly which area to improve upon. It's a 12 question quiz. You can try it here.

If you want to learn how to get 30% from the market, here is a free training online. You can reserve your seat to watch it online here