If you have $20,000, which is the best way to invested.?

Question

I just sell a house, in a divorce matter thing, and I want to do the best with this money...

Answer 1

The best advice would depend on your circumstances. But if it were me, here is what I would do. $5,000 in cash in t-bill because they are short term tax free from local taxes and safer than most investments. That is your rainy day money.
$3,000 in a mutual fund that invests in China such as TDF or CHN.
$3,000 in a mutual fund that invests in India such as IIF.
Both markets have had large sell offs but both are growing better than other countries so there is plenty of potential there.
$5,000 in a mutual fund that invests in U S such as GAM.
$4,000 in a world type mutual fund such as FUND

Answer 2

You didn't give much details about your personal situation, your age, your goals. So here's an approximate answer:

- First, pay down any credit card debt, if you have any.

- Put $5,000 in a high yield money market account. This is your safe cushion. You will not loose this money, and it will yield about 5%. If you need money in an emergency, this is where you get it from.

- Put $10,000 in a index mutual fund. Don't touch it. Consider it locked for several years. This is for your retirement, or other long term goal.

- With the remaining $5000, please yourself. Buy something you like. Make a nice gift to your friends or family. Give to a charity.

Answer 3

You should try opening a money market account at the bank. With that type of money you're looking at making close to, if not over, $70 interest a month. Plus, you don't need to worry about the stocks crashing or falling. Stocks are good to look into, but it's not something I would risk. I, myself, have over $20k and I put it in a money market and have made a large sum of money through interest. Plus it's nice because if you ever need the money, you can take it out without being penalized.

Answer 4

It really depends on where you live, what kind of scenario you have, how much assets vs. liabilities do you have, do you have to pay alimony, do you have to pay child support, how much do you make a year.

Let's assume, you make $50k / yr, no child support, no alimony, pretty decent liquid ratio 3x:1x and living in mid west.

I suggest you buying a house for around 150k to 200k. The most important reason is for you to have a tax shelter. At $50k / yr, depending on your input on your retirement plan, you probably have to pay from 18-27% of tax. If you use this 20k to down a house, then finance the rest ($130k) for 30 yr fix or variable... you probably have to pay $1200.00/ month, but most of this mortgage payment for your first 10 yrs will be mostly interests, which is tax deductible. And hopefully, your real estate will appreciate with time. So this is a win win scenario. But if you were a young kid like me, then a car and a few trips to vegas wouldn't hurt.

H.C.

Answer 5

Hi Raj, If have no longer performed your tax saving funding to this point, I might propose you to head for ELSS. If you don't have got to spend money on tax saving scheme it's higher to head for a SIP. That could no longer provide you fine go back however will maintain your funding quite reliable. If you're a threat taking style pass can opt for a top threat mutual fund that invests in mid-caps. If you're in a position to free a few cash in go back of the abilities take a dmat account and spend money on stocks. -Ripul

Answer 6

Invest in GIC's since they are the lowest risk investment they do not have a high return rate but you wont lose the money either. Your best bet is to talk to a banker or an investment specialist

Answer 7

The best way to invest would be to gamble in Las Vegas on slot machines on one rainy afternoon. Now the safest way of invested 20 grand would be in a money market account. Several factors depend on you also.

Personally, I would invest 20 grand in the amusement of slot machines. lol

Answer 8

the interest rates on savings account sucks, but if you take $10,000 of that put it in a 7month- 12 month 5.00 % CD from day one you're making money then I'm sure the same bank you get this cd from have some money market accounts that you can combine so you can invest $8,000 in a savings account and $2,000 in a checking account for emergency situations.

Answer 9

Invest it in stocks or in something that you want like a car or a house or something big or maybe jjust put it in your bank account and let the intrest rate raise the money up

Answer 10

Talk to your financial advisor. Everyperson financial situation varies.