I need some hints. Nothing risky like the stock market or Las Vegas.
Bonds, funds Etc, but which ones? They all like to claim they made 48% interest in 98, or some odd year. Well, Im all ears!
I was tempted to start off with a smart-ass remark, but I decided to let it pass.
How much return do you want? How much risk are you willing to assume? And how long are you willing to leave your money alone?
For $5,000 you can load up on United States Savings Bonds (I’m sorry, I’m assuming you live in the U.S.) and be as sure of a return as anything is possible in life. Of course, your money will be tied up for years at a low interest rate.
If you’re willing to accept a teeny bit more risk, you can get a certificate of deposit at your local bank, but the money is still tied up for a year. If you want want to be able to be able to get your money right away, you can get a money market account.
Then there are corporate bonds, blue chip stocks, junk bonds, speculation stocks and all manner in-between. All of them having varying levels of risk, ranging from not too bad to what-the-hell.
The stock market has given investors a merry ride the past few years, but what comes up will come down.
.CC domain names
If you really want to eliminate risk, try Treasuries, they apparently are the safest you can buy. The yeilds are not the highest but states and cities cannot tax the interest, you can buy them online right from the government at www.publicdebt.treas.gov and without paying a commission.
A money market account will have better interest rates than your local checking account, which is pretty much what it is, but I do not think that would be the way to go for only 5,000… your money is just too accessable, you might spend it before you know it and there go your prospects of making more money by using YOUR money which is the goal here I presume.
My investor set me up with some mutual funds and they are doing pretty well considering commissions and all… that could be your best choice if you dont want your money tied up for many years.
Related to your question, my investor happens to be the same my lawyer uses (my lawyer pointed me to him) this could work for you too, is there someone you know that makes a good deal of money and is someone you can trust? Ask that person what he/she does concerning investing.
However, if you do some research, stocks are a nice way to go, true you could lose money but in the long run, say 5-10 years your most likely to make money. I am just starting to learn about investing (now that I have money to invest) and I am really interested in learning all I can… while some of you might snicker at me I hope one day to just manage my own funds (no broker, no investor) and hopefully be savvy enough to make enough money that way and quit working for a boss.
“Wow! Spider-Man! Are you really friends with the X-men?”
"Not since Cyclops tried to use my viewmaster."
(Marvel Team Up #1)
If you follow Bob Brinker you’ve been fully invested in the stock market since October, 1990 and you followed the bull up all this wonderful decade. Every time there was a hiccup or a dip Brinker would say “Hold the course.”
Until now.
On January 8th that roaring bull became a bear. For the first time in a decade he quietly advised “sell.”
He now has 60% of his holdings in the money market.
Vanguard’s GNMA fund is currently returning about 6.5%. That’s pretty good for government backed mortgage securities.
I wasn’t trying to push Handy into any particular type of investment until he had a handle on what his priorities were.
Handy, are you willing to put away your money for a long time, or do you want to be able to get it quickly and easily?
Are you willing to say “nothing ventured, nothing gained” and accept risk, or do you think of this as your nest egg, to be protected?
Is this all the money you have to invest, or can you use this as a start, and make regular contributions after this?
Are you in a tax situation where having tax-free returns will make up for the lower return such investments produce?
Do you have political or social concerns and want to invest your money into those areas?
Are your credit cards and high interest loans paid down, do you have a cash reserve of savings and adequate life insurance?
You may want to start by checking out Sylvia Porter’s Money Guide or one of the Dummies books on personal finance or investing. Once you’re comfortable with the issues, you may even want to work with a financial planner to set up a personal plan.
[quote]
I was tempted to start off with a smart-ass remark, but I decided to let it pass.*
I, on the other hand, won’t. Handy, seeing as how the Great Monterey Doper Bash 2000 is coming up in 9 days, I have an excellent investment idea for you…
“Everybody wants a rock to tie a piece of string around!”
-TMBG
Well thanks for all your suggestions. I did not say it was my money but yes, there is someone who wants to invest $5k, USA.
Might be kind of sticky cause they are here on a Visa from England. Maybe they can give it to me 