What is the best way to invest $5,000.00?

Answer 1

$5000 is not very much money.

Leave it in your checking acct for an emergency fund and stop buying stuff with credit cards.

Answer 2

Variable Universal Life Insurance.

It grows exponentially just like a 401k or an IRA (at a higher rate), except that if you die, it'll give your family a lot of money. The first 5 to 10 years, however, if you decide to cash out the policy, you won't make back quite what you put in. Part of your monthly premium goes into the "insurance" portion of the policy, and the rest goes in at this higher interest rate to the "investment" portion. The insurance portion is always worth the same (i.e. the amount you want to be insured for, be it $500,000 or $1million, etc.), but the investment portion grows at the interest rate for as long as you keep it. After 20-30 years, the investment portion is usually worth more than the insurance portion.

Plus, it goes in tax free and comes out tax free. It also allows you the freedom of paying a smaller premium one month if you're strapped for cash, or a higher premium one month if you have some extra money to throw at it. The only way to lose is if you pull out of it early.

Answer 3

What are your goals for the money?

If you need a tempory place to set it, look into GE Interest Plus or ING Direct or any high yield savings account/money market like those.

If you want long term open a Mutual Fund account. Now of days they have those Freedom Funds that have target dates for retirement, those are kind of neat. Any mutual fund is usually pretty good. If you dont know what your doing find a financial advisor in your area and they could help you out.

If you want to do something crazy open an account like with Sharebuilder.com and put $1,000 in 5 different common stocks. I did something like that and actually had good luck. I just picked companies I know and use everyday.

You could also just set the money in a CD or savings account. Kind of boring but probably better advice than you will get from some people here.

Answer 4

It depends on your age and when/if you will need the money.

If you do not foresee a need for the money in the next few years, a high rated mutual fund is a good place.

Whatever you do, stay away from whole and universal life type policies.

When in investing, follow this simple process. If you can't understand the terms of the investment in one paragraph...it is likely too complicated and there are better places to put your money.

Answer 5

An education.

A good degree in the right field is worth 70 grand a year for a career... or about 28 million over 40 years.

It takes 4 years to get the degree, and could cost you $20 thousand dollars.

The present value at 6% of that series is 1.053 million dollars. Thats an ROI of 5166% for a $20k degree.

Answer 6

Start by investing in yourself by doing what you love and understand well. If you don't understand something well enough and take someone else's word for it, that something may be a bad investment.

For me, I would say real estate. For you, well, you would have to find that thing. Even if it's in education of some sort.

You also have to understand how long you want your $5,000 invested and what types of returns you want. Long term? Short term? Conservative, moderate, or aggressive? etc...

Answer 7

This is a question that can't be accurately answered without first knowing you, your goals and your needs. It just depends on what you're looking to do with your money, your risk tolerance, how long you want your money working for you, etc.

Answer 8

Invest it in my business. Look it up under my questions recently, or contact me directly. I am serious

Answer 9

You can give it to me and let me invest it. I will let you know how much you made or lost. :)

Answer 10

Pay down your debts.