Question

You have $50,000 and plan on investing the money develop an plan based on your knowledge of investing in stocks

Start with your risk tolerance and allocate the money into at least 3 different options.

Based on your investment how much can you expect in return over 25 years?

Answer 1

After getting $50000,

The 25 years is a very long time. Even if the investor invests in the passive fund like Index fund(S&P500) on an average, depending upon the past trend, he can earn a handsome return. Although it's not a guarantee but there is a certain level of confidence.  

The investor can also look to invest in foreign markets like India. The Nifty Index Fund has an average return of more than 12% in 10 years, with a greater level of Confidence.
Taking factors like foreign exchange into consideration it will still be more than 8% in local currency.

The Investor can diversify his portfolio in different Index funds, Real estates and Gold.
So that the risk decreases.

60%-70% of the money should be invested in equity.

Remaining amount should be invested diversified portfolio for example Bond, real estate fund or Gold. Whichever is performing well at the time and depending upon the circumstances - like if positive sentiments are prevailing in the markets & about economy it's best to invest in Equity or if the future of the economy is in doubt it's better to invest in commodities like Gold, which provides a good hedge to the overall portfolio.

The average return that can be expected in 25 years is more than 10% p.a. depending upon the past trend in markets like USA.
In emerging markets like India, the return can be greater than 14% p.a for 25 years.