If you had $1000.00 Dollars what would be the best way to invest it?

Question

I found out that I have $1000.00 owed to me and I want to invest it. I know its not much but I figure I dindt have this money before, so what would be the best way to make this money grow?? Thanks for your answers.

Answer 1

The answer is how much risk you want to assume and how long you would like to leave it. A money market checking may be best if you need it liquid while a 6 or 12 month CD is basically safest. You could play the stock market if you are not afraid to lose it. A mutual fund over long period may be the best route for more diversification. You see, there are many options but they all have advantages and disadvantages. If you are young, start with that money and add to it on a weekly, monthly or yearly basis and then get the best from each of the options above... some safe and some risky. As mentioned earlier please get a 401K plan set up and contribute the most you can. That will be pre-taxed money where the $1,000 you have has probably already been taxed once. If you have credit card debt, you will immediately save 12-20% by just paying off existing debt. That's the best return on investment you can make. Why invest for a 6-12% return if you are paying 15+% to a bank???

Answer 2

You don't say how old you are, but I will assume you're fairly young. I would invest it in a big company like General Electric (GE), Pepsi
(PEP), or Proctor & Gamble (PG). I would purchase directly from these companies, so their dividends they pay to you quarterly, would be reinvested in additional stock. I would try to forget about this invested money because stock prices can change every day.
But after just a few years, you could see a tremendous return on your money. Everyone over 40 wishes they had done this. Why not learn from the experience of those older than you? These are sound companies with good futures. This is not as speculative as many stocks are.

Answer 3

That is way too little money to do any real investment.

However, you can lend this money to someone (someone that you know is honest or can pay you back) who is in need of money, then both of you sign an agreement, and let each party keep a copy of the agreement.

Basically, you want to either invest in a relationship or invest on the interest or some other non monetary reward when that person pays you back.

Answer 4

My policy is always keep 50% of what i have safely in the bank or in deposit or in the form of bonds.

I will invest only the rest of my 50% in anythink I would like.

My advice is if that amount is really an important amount for you, then invest only 50% of it. If it is not a big and important amount for you, you can try invest in regular income saving bond or deposit.

Answer 5

Depends on your time horizon and purpose for it.

If short term,like under 1 year, I'd invest it in a high interest rate online savings account, like Emigrant-Direct. If for under 3 years, I'd invest it in a high rate CD. Check out bankrate.com for the best deals on both savings accounts and CD rates.

If longer term, a good stock index fund or index exchange traded fund. I'd either go with Vanguard 500 index fund or buy SPY stocks, which are S&P 500 ETF stocks.

If for retirement, I'd put it in a Roth IRA, and buy a lifecycle fund, which diversifies the money for you, and sets the risk appropriately for your anticpated retirement date, modifying both as you get nearer retirement. Again, I'd recommend the Vanguard Target funds for this.

Answer 6

Depends on how long a horizon you have for the money. If you have an IRA put it there. With a small amount like that you can use a CD. There are a few places that let you buy small pieces of stock on a monthly basis.

Answer 7

I would invest it in a new suit and go get a better job so that i wouldn't have to think about a measly 1000 bucks

Answer 8

Open a brokerage account at TD Ameritrade and buy $500.00 in Diamonds and $500.00 in Spiders.

Answer 9

A 401(k).

Answer 10

Put it in the bank