I'm not ready to purchase again until I finish school in 2 years. Where can a safety invest this profit?
2006-08-17 04:22:16 · 14 answers · asked by Tyranus 3 in Business & Finance ➔ Investing
You are allowed a one time pass of profit from taxes if it is below 250,000. Since you meet this requirement I'd look into it. Also try to start an IRA which is taxdeductable or better yet a self directed IRA which allows you to invest tax free as long as you don't withdraw early. Both of these have maximam dollar amounts so for safe investments I'd do tax leans which can be around 15% returns. Each state is different so you will have to get started by contacting the county and also researching requirements. Banks do it, insurance companies do it. Why do you think you only get 5% return on bank accounts and CDs? Because they make three times that in this! email me at msmith_acs@sbcglobal.net for more info if you want.
2006-08-17 04:45:20 · answer #1 · answered by Mark S 3 · 0⤊ 0⤋
The user who suggested IRAs has a very good idea, but I'm not sure whether you're from the US or not. The tax leans are a similarly good idea, but again, they're not available in every country. So in complement to what's been said, I'd suggest a combination of diversified mutual funds and bonds (or bond funds).
The mutual fund you invest in should have a decent balance of large-cap, small-cap, and mid-cap stocks (higher capitalization offers lower returns and lower risk, lower cap offers higher returns and higher risk), and should come from a stable economy. You can research different mutual funds meeting your risk/return requirements at www.morningstar.com or http://finance.yahoo.com. You can also find information on bond funds there.
In total, you should be aiming for a return of around 15%-20% annualized. Anything more will generally mean taking increased risks, such as investing in sector or small-cap funds. Asian funds (especially Japanese funds) may produce higher returns, but once again they're more unstable.
You may also want to try conservative options strategies, like deep-in-the-money options, but that would take more time and you probably need to concentrate on your studies right now. If you want to find out more about these strategies, go to www.investopedia.com. You can also find tons of info there about investing in general which may give you more ideas.
2006-08-17 12:05:11 · answer #2 · answered by mikebironneau 2 · 0⤊ 0⤋
I've been watching the EPMD stock on yahoo finance and you can look at the history. Its low buy right now, but the potential to rise is good.. That or talk to a broker about a few mutual funds, invest like 1K and bank the rest into a high interest bank good luck.
2006-08-17 15:39:03 · answer #3 · answered by tracienmark 2 · 0⤊ 0⤋
All you need is a short term CD from 3 month to 6 months, they paid a pretty good rate right now. about 5% to 6%. DO NOT DO ANYTHING IRRATIONAL until you have clear picture in mind what you want to do with the money. In the 2 years, you can pick up some book about investing in real eastate or financial market the right, your way.
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.
http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:
fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy
technical analysis==(chart+indicator)>> when to buy
Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live
At the age of 32. my 401k is amassed 71,000.00 and 30000.00 in taxble account. by follow simple rule
2006-08-17 20:58:49 · answer #4 · answered by Hoa N 6 · 0⤊ 0⤋
CD rates are over 5% for a year. I'd put it into a CD for 2 years... and not worry about it. You'll be beating inflation and that will make for a nice downpayment on the new place
2006-08-17 11:31:57 · answer #5 · answered by words_smith_4u 6 · 0⤊ 0⤋
I suggest the stock market if you are willing to take a risk of 10% ($2,300.00)
Top 5 Answerer in this category.
2006-08-17 22:35:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋
invest your profit in mutual fund . this is the only way by which u can make good profits
2006-08-17 11:53:34 · answer #7 · answered by sahil_mohd521 2 · 0⤊ 0⤋
put it in an emigrant direct savings account. their rate is 5.15%
it's liquid (if you run into an emergency you can pull out whatever amount you need)
and you'll be earning over 11 hundred dollars a year in interest letting it just sit there.
2006-08-17 11:38:42 · answer #8 · answered by Queen Nefertiti 3 · 0⤊ 0⤋
Buy a CD, 3 or 6 month... keep rolling it until you need it.
Don't buy stocks, bonds or funds....
Don't get suckered by commission hungry brokers.
This is money you will need, don't risk it.
2006-08-17 12:15:50 · answer #9 · answered by Anonymous · 0⤊ 0⤋
no load mutual funds
bank cds
savings bonds
diversify $1000 through 23 different stocks
2006-08-17 11:28:45 · answer #10 · answered by Anonymous · 0⤊ 0⤋