She has about $2000 in a jr savings account. Needless to say it's not gaining much interest. Any ideas on low risk ways of investing it for a maximum return?
2006-07-06 06:37:35 · 10 answers · asked by memesamusements 1 in Business & Finance ➔ Investing
There are online savings accounts that you could put that money in your name and get over 5% return. Check out Emigrant Direct, HSBC Direct or Amboy Direct. I'm sure all of their CD's will be even better.
I'm not as big of a fan of Ing Direct as I used to be. They've really fallen behind in the savings rate race. There are at least 4 online banks offering 5% or more on their savings right now, while Ing Direct is poking along at 4.35%. All are FDIC insured.
If she's interested in the market, she could buy a balanced (stocks and bunds) mutual fund that won't be too risky because of diversification, but it should have better returns. In that case, go with a no-load low cost fund like a Vanguard or Fidelity fund.
I think it's great your daughter has saved so much. You've done a good job teaching her about the importance of saving vs. spending it on stuff.
Also, let her know that it's much easier to retire with a million dollars or more, if she starts saving for retirement as soon as she starts working. It'll take much less in contributions.
2006-07-06 08:00:59 · answer #1 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
Open a Uniform Gifts to Minors account at a discount brokerage than research exchange traded funds...Purchase shares in one trading at a discount offering a yield of 6-7%. Because it's going to be trading at a discount it'll have less downside than other stock investments. Set the dividend up to reinvest and she'll have even more savings in the form of additional shares when she's older. Good Luck!!!
2006-07-06 14:19:26 · answer #2 · answered by thebigm57 7 · 0⤊ 0⤋
If she doesn't need the money the only low risk way to get better yield is to buy a CD from your bank. You can also shop around for better rates since some online banks offer better yields.
2006-07-06 13:53:10 · answer #3 · answered by Shiner 2 · 0⤊ 0⤋
Open up a CD ladder w/ INGDIRECT.....you can have a 12 month CD for $1,000, a 6 month CD for $500 and a three month CD for $500....It's a good way to get used to having money locked up for short periods of time, and a great learning tool for basic investing.....and ING has pretty good CD rates w/ no minimums.
2006-07-06 13:46:29 · answer #4 · answered by Paula M 5 · 0⤊ 0⤋
If you want maximum return you need to take maximum risks.
If you want low risk you need to take minimum risks.
YOU CANNOT HAVE IT BOTH WAYS.
I suggest you to open a brokerage account at TD Ameritrade and invest in ETFs with my FREE help. (I am a Portfolio Manager)
NOTE: I asume you can handle a $200.00 risk (10%)
Top 4 Answerer in Business & Finance. (Vote for me)
2006-07-07 02:59:34 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Why put money in a bank when you can invest in the bank.
Do some research on Yahoo finance for the stock symbols C, BAC, JPM, WFC, WB, STI, there's more but you can look those up.
2006-07-06 14:22:57 · answer #6 · answered by reallyno 3 · 0⤊ 0⤋
Check out capital one, emigrant direct, or ING. They usually offer the highest money market rates. Money market's are very safe, very accessible, and as interest rates continue to climb, they give descent returns.
2006-07-06 13:49:07 · answer #7 · answered by hiker 2 · 0⤊ 0⤋
invest somthing we do every day ask her do she want to learn how to start a bussiness or somthing. sell somthing.or just use and for your little girl if collge come around her mind.
2006-07-06 13:44:15 · answer #8 · answered by RaFiperrie 1 · 0⤊ 0⤋
Open an UTMA account
2006-07-06 13:42:53 · answer #9 · answered by Signilda 7 · 0⤊ 0⤋
Let your doughter to invest them herself.
2006-07-06 13:41:27 · answer #10 · answered by Anonymous · 0⤊ 0⤋