Best way to invest a few grand?

[richardycc]

Originally posted by: dafatha00
Invest into stocks.

Invest in a company with the symbol FB, and collect your $1.25 quarterly dividend. Invest 3k, that's $400ish/year, invest 31k, that's $4000ish a year, much better than the $930/year in the bank. you can probably retire if you own as little as 7000 shares.


rich

 

[HellRaiserandBeerDrinker]

Not just some stocks

Buy some Walmart shares....

I just read they bought their first bank :Q

 

[jadinolf]

whoops

 

[jadinolf]

Originally posted by: OrByte
I just deposited $31k into a local bank that is offering a monthly interest rate of 3.12%.. It doesn't sound like much but I am earning $930 a month on it...operates just like a checking account...but I am not going to be making withdrawals anytime soon. I am just gonna let the money sit there and earn interest. Problem is, I don't know what this is gonna do to me when tax time comes around

Just look into the diferent banks in your area, most would be more than happy to open a savings account for you...but you have to do the homework!

All the other banks in my area were offering rates in the range of .88% to 1.6%...but I kept looking until i found the right bank and an excellent deal. DO your homework!


There is that a serous enough answer for you?

Better check your math. Those numbers don't work.

 

[RossMAN]

In a financial institution.

That'll be $20 for my advice.

 

[linuxboy]

Originally posted by: gplanet
What's gonna be the best way I can invest a few thousand for a couple of years?

I want to do it pretty safely. I could get a 5% five-year CD account, but if i put $3000 into that, that's only gonna get me about $150 a year....not too much.

I'm looking for somethign that can safely get me at least 10% yearly. Of course, if know it won't be completely safe and if i end up losing a few percent I won't cry. I don't know if this exists, I hope it does

Any ideas?

In a financial institution.

That'll be $20 for my advice.

Bah ! I do planning for free...

Hi gplanet

If you're looking for a 10 % return with minimal fluctuation, you should consider a mutual fund. This has 5 advantages over regular stock

1) Professional management. There are managers who consistently beat market averages.
2) Convenience. Put it in the fund and forget about it if you are investing long term.
3) Diversification. A Mutual Fund is a pooling of investor dollars to achieve a common objective. To do this, they diversify over a large number of companies to hedge against market risk.
4) Automatic reinvestment. Capital gains and dividends can be reinvested for your convenience and you get a nice 1099 form at the end of the year to ease your taxes (as opposed to dealing with capital gains and losses resulting from trading... messy)
5) Info. You get quarterly updates, can check the quotes online and all sorts of cool stuff.


If the goal here is simply short term (up to 5 years) capital appreciation and a place to put your money to beat inflation and bank returns (CDs are very low right now), then an open account in a mutual fund is the best bet. If you want to pick mutual funds, I suggest you check out Morningstar to see their ratings. In choosing, pick funds that have consistently performed above market and that have consistently placed in the first quartile of their respective classes.

I do not know your risk tolerance but it sounds like you are a conservative investor looking for sustainable growth. In your case, the best bet is a fund that has a mixture of stocks and bonds (a balanced fund). Those typically achieve right around 10 % with the better ones getting returns in the 15-18 range.

Please note that the market is crazy right now and very volatile. People are not sure what is up but economic indicators are positive. The fed rates are great and GDP grew last quarter, bringing us to a state not seen since the 1950's. If history has anything to say, this is a great time to invest, if you are a long-term investor.

If you hear people say something like "invest into stocks", that's not really an answer because those are just the investments that fuel growth. You have to consider what type of program in your financial plan best helps meet your goal. In your case, an open account into a mutual fund should provide you with the desired result, even in this bear market.

If you're looking to save for another goal such as retirement, my answer would be completely different. Also consider long-term investing to help you meet your goals.

PM me if you need any more help.


Cheers !



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