Nevermind

Trey22

Diamond Member
Oct 31, 2003
5,540
0
76
Currently have: 401k through company, variable annuity through WRL.

Some family members (that border on the paranoid) have me "holding" their savings, somewhere between 12 and 15k. They were earning 0.85%.

I have my own chunk of change available (30k), that I'd like to see gain a return, instead of just protecting against inflation (even at ING @ 3%).

Being that I haven't been following the market, I though I'd get some opinions/suggestions/flames from you guys. I DO plan to do my own research, just needed a nudge in the right direction.

Mutual fund / money market / CD / etc.?
 

Kenazo

Lifer
Sep 15, 2000
10,429
1
81
Check out a company that's consistantly earns a profit, is growing and pays a good dividend, assuming you want to avoid the PITA factor.

I'm looking at a company called "Arctic Group" that trades on the TSX (I'm Canadian). It's consistently paid a dividend around 10% of the share purchase price.

This is fairly risk free investing, not completely risk free; if it was there would be no return.
 

iwantanewcomputer

Diamond Member
Apr 4, 2004
5,045
0
0
earning .85% is plain stupid when you can get 3.25% from a savings account (emmigrant direct) or more from cd's/money markets.

vfinx is volotile if the economy gets worse. look how much the S&P lost in 2001-2002

i'd reccomend a better managed fund, yes most underperform the market, but there are a lot that consistantly outperform with small fees.
 

TGS

Golden Member
May 3, 2005
1,849
0
0
Couldn't you just put that in a CD, for say 12 months in the mean time...Or a Roth or standard IRA?

I would max out retirement options, or advise them to before you start investing in stocks.

Of course if liquidity is of the utmost importance, they may not want to invest period. In that case a typical savings account with a decent interest % would be best.
 

Trey22

Diamond Member
Oct 31, 2003
5,540
0
76
Originally posted by: iwantanewcomputer
earning .85% is plain stupid when you can get 3.25% from a savings account (emmigrant direct) or more from cd's/money markets.

Exactly the reason I had them put their money in my account, so I could have access to it and invest it in something more worthwile.

 

Trey22

Diamond Member
Oct 31, 2003
5,540
0
76
1=really low
2=low
3=moderate
4=high
5=really high

On the above scale, I range between 3 and 4.
 

gopunk

Lifer
Jul 7, 2001
29,239
2
0
Originally posted by: iwantanewcomputer
earning .85% is plain stupid when you can get 3.25% from a savings account (emmigrant direct) or more from cd's/money markets.

vfinx is volotile if the economy gets worse. look how much the S&P lost in 2001-2002

i'd reccomend a better managed fund, yes most underperform the market, but there are a lot that consistantly outperform with small fees.

2001-2002 is not exactly a typical year