If I don´t have money to contribute to a mutual fund, what is the best choice for a lump-sum investment?

Answer 1

I would go with a Roth IRA. You have to have 2000 minimum to start it up, but as a LONG term investment, its a good idea.

If you want to use it for college or a house purchase, there is also no penalties on your account, either. When you turn 54, you can pull the money out, completely or just at your whimsy, and there are no penalties for that one.

The bigger the lump sum, the longer the term should be. Roth IRAs are low tax, higer return, long term investments- an excellent investment for any large sum of money. Its a good way to keep you from spending/ frittering away your nest egg.

If you plan on using a smaller portion of the money, just ask your bank to cash out a portion of the check when you apply for the IRA, OR-

You can get a Certificate of Deposit, which has varied terms- from 6 months to 10 years, I think. These are renewable, but the percentage of return varies according to the term.

Savings Bonds are also Good. They are 7 year investments. You buy a savings bond for, say 10 bucks, and you get a certificate with $20 written on it. 7 years later, your 10 bucks doubles in value to 20. You can still cash savings bonds prior to the 7th year, but you will only get what was originally paid on it, if you do.
E.G.- If you pay $50 and get a $100 savings bond, you will get $50 back, if you cash it earlier than the maturity date. This may have changed, though, and you might get a certain amount more back. Check the site, please.
You can get high dollar savings bonds, also. These, I believe, are tax exempt, also.
I suggest savings bonds to parents, for purposes of future college funds, and general expenses, also.
This is all off the top of my head, so check the sites to verify, please.

I wish you luck in your financial future!

Answer 2

I would not be surprised at all if you were to get answers supporting the two different strategies. There is something to be said for either. In general though--and I would certainly like to hear the argument opposed--dollar cost averaging is generally an approach supported by proponents of a regular monthly type contribution. I guess it might make some sense in that context for those who do not have the ready cash to invest. But in general equity values tend to over the long term consistantly increase in value in general. And that is particularly true of mutual funds indexed or not. There certainly are exceptions to that as happened to certain mutual funds and index funds from 2000 to 2003 and it will happen again. Perhaps even this and next year. I do not know exactly what you might have in mind by the term. But I will have this to say. I would not invest it all into mutual funds at this time. But I would put a good percentage in. After all you do want to get the advantage of the long term trend. You could reasonably invest 25% now, 25% in 6 months, 15% in 12 months and 15% in 18 months. The other 20% should in my opinion remain in the money market account. Sort of a safety valve. Also I would caution you about puting it all into index funds. I know that they are very popular today but there are some disadvantages to them that you need to seriously consider. One is that some, especially the 500 index fund, are not very diversified. 25% of your assets are invested in about 20 stocks. The other 75% in the other 450. Also that particular fund is all U S equities. That also is not diversified. Vanguard has a more diversifed fund that is not an index fund that you should give consideration to. It is the Global Equity Fund. Only 35% of that fund is invested in U S equities.

Answer 3

I'm suggesting you to build your income from internet business, use the profit from interner business to invest in your mutual fund. Some of my friends have been doing it quite successfully now!
Go for the internet business, which requires less of your time and the one that will not make you feel headache with web designing, or which require IT knowledge. Second, choose the internet based company which offer you the opportunity and at the same time giving you the convenience to start the business. Third, choose the business, which does not require big money to start it.

All the above is only available from: http://www.website.ws/cybalgua
Honestly, I tried so many opportunities offered through the internet and this is the only one that really works.
PLEASE NOTE: You only will understand the whole marketing concept if you read every details & the trial period is FREE!

General Information:
COMPANY NAME: Global Domains International Inc
LOCATION: CA, USA
CORPORATE INFORMATION : Login here: http://www.freedom.ws (YOUR ACCESS CODE IS: cybalgua)

Remember, You CAN'T guarantee whether you will get many fish or not by spreading your net into the sea, but u CAN guarantee that there is no fish at all if you never spread your net into the sea.

Answer 4

If you do not have enough money to contribute to a mutual fund, where investments can be as little os $250 or $500, then you cannot possibly have sufficient funds to make ANY kind of investment, other than perhaps a bank Certificate of Deposit.

Answer 5

I've been advised by reliable sources to put money in CD's, if nothing else. My bank offers $500.00 or $1,000.00 CD's with 5 or 6 %.
Not having been very wise with saving or investing thus far, I'm going to try this route.

Answer 6

Gold coins, like the 1 oz Eagle or the new 1 oz Buffalo. Also silver market is great investment right now. 100 oz silver bars are your best bet.

Answer 7

If you're talking under $10,000, you're better off with a bank CD or money market.

Sales commissioins on stocks will eat too big a percentage for you to come out ahead.

Answer 8

Offshore investment. Try the link below or contact me.