I have no idea where to put this money. It's all I have, and though it may not be much to some, again it's all my savings. What would yield the best interest/the best return??
2006-09-12 04:22:12 · 11 answers · asked by ? 3 in Business & Finance ➔ Personal Finance
First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.
Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay. (Depending on the rates, you may want to pay off the mortgage and student loans as well.)
Third, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.
Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will make you a lot of money in the long run.
Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.
2006-09-12 04:44:17 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I would suggest talking to a financial planner. I have some investments through a financial planner. When you invest through a bank, they give you a certain amount of interest but then they go and invest your money again into higher interest companies. Basically the bank is the middle man. A financial planner will invest your money in the companies that the banks would, that have the higher interest rates. Therefore getting much more interest on your money. The company that I use is Trans America. I think they're in the states too. Hope this helps.
I might add that most people just automatically go to a bank because they don't know any other way. The company you're investing with will still take a small cut, but it's not near what the bank would.
2006-09-12 04:25:55 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Get a retirement account. You can put 4K into a ROTH. Do it and max it out. You will be glad you did when you retire. All your earnings in a ROTH are tax free when you retire. Add to it in january and max it out again.
Get a good investment broker who will sit down with you face to face and help you find an investment that will be with a risk level you are ok with. You need more information than your going to get here. I use edward jones but you can go just about any where and get good help. Be sure you get a face to face visit. You want to be able to see a real person who gets to know you and who understands your interests and needs. You can't get that here. As much as I would like to help you, I really don't know enough about you, your age, your income, your debt situation, etc. How many dependants do you have? How old are they? How long before you retire? How close are you to paying off your home? All factors.
Get some pro help and then get a second opinion. Then a third and a fourth.
2006-09-13 06:09:03 · answer #3 · answered by john d 3 · 0⤊ 0⤋
If it's money for the long run 5-10 years or more- you have enough to plink it into a handful, perhaps 4 or 5 different diversified mutual funds.
go with low fee funds. they do as well as the high fee ones. Or even a smattering of index funds.
2006-09-12 04:29:04 · answer #4 · answered by Morey000 7 · 0⤊ 0⤋
Until you figure out what you want to do, you can put it into a ingdirect.com saving account. It get 4.4% and has no fees. That's $1,760 in interest for one year with no risk.
2006-09-12 04:38:42 · answer #5 · answered by Jordan K 3 · 1⤊ 0⤋
If you are young then put it into a high intrest CD, or for a longer spell put it into a 401K.
Fidelity.com is good place to start.
2006-09-12 04:25:16 · answer #6 · answered by JaMoke 4 · 1⤊ 0⤋
I asked this same question four times, and didn't get a good answer
2016-08-23 06:39:06 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Very interested to hear the answers to this as well
2016-08-08 14:50:25 · answer #8 · answered by Anonymous · 0⤊ 0⤋
try a money market account or a certificate of deposite account
2006-09-12 04:24:47 · answer #9 · answered by links305 5 · 1⤊ 0⤋
depends on which country you are in!
2006-09-12 04:28:09 · answer #10 · answered by mk 2 · 0⤊ 1⤋