My wife and I just came across 5 thousand dollars...how should we invest it??

Question

This is our first investment, and we're not sure how to invest it wisely. What should we do??

Answer 1

get a roth IRA or put it in a money market

Answer 2

Every body has their own ideas and choices. Some people invest in jewelry which tends to be devalued quickly as it is often increased by the original buying value wholesale value by 500 percent..this means five time the wholesale price whereas store averages are 3 times or 300 percent to help support the employees pay the rent etc.

So I see jewelry as a bad investment. If this is risk capital then you can take chances but know your investment well. If you cannot afford to risk it then make sure you find a bank with a good rate better than inflation and put it in the bank with a CD. But keep in mind that many other ways are risk capital it can be lost completely. You can start a business but if you are not willing to work to make it work, study business law and work very hard the chances it will fail is very high. Often regardless of how hard anyone works at it a business can fail for many reasons such as a bad time in the economy not predicted such as what happened with 911 many people lost their businesses, a military base shuts, a major business shuts, a fad goes out.
The safest as long as the U.S. stays around and the world remains stable is in a bank account where it is insured by the US government or in bonds. But keep in mind whatever you invest in if you have an emergency only a bank account can be dipped into. With the price of gas having gone up so high my father invested into a hubrid car which is helping pay for itself in the amount of gas it saves us when driving around town big time!
Alot of people lost in the stock markets which is what the money funds were investing in it began before 9-11 but that just made it drop faster as people pulled out their money fast. I invested mine in education over the years. It has always helped me improve my life not necessarily economically but because I have this knowledge I know how to use a computer and communicate with you. So I am sure you appreciate my education and are benefitting from it such that I am helping my world around me. The better the world for you the better for me. There was a slow growing but better than CD fund I read about many years ago that was very carefully thought out. They did things like invest in hospices when they were very new and those did well on returns. I cannot remember who they are but they invested responsibly wisely in regards to funds and the world.
My father invested in IRAs something like the Roth funds and he is doing ok now he is retired.

Answer 3

Put it in a bank CD for 90 days, let it roll over and over until you see something you think you can be a winner at. Choose a local bank you are comfortable with. If you insist on a common stock investment, open an account with Sharebuilder and buy CAT,
in position both long term and short, if you don't think you'll need the money for anything anytime soon.

Answer 4

If you plan on keeping it for the long haul and will not need it until retirement, open up a Roth IRA. Go to an investment adviser to discuss which fund to put it in.

Answer 5

I suggest a ROTH IRA. A roth IRA allows you to get to this money even after investing it, in case an emergency would arrise in the future. Keep in mind this IRA is simple a vehicle... you must now put something IN this vehicle...I suggest a mutual fund. Check out "Ameriucan Funds" mutual funds.. I have been very happy with them. : )

Answer 6

The market is good but iffy now. I would suggest anything under 10k be put in mutual funds. Look at T. Rowe Price family of funds, no load funds. If you are young I would suggest moderate to higher risk (small cap) funds. If you wish to use the money in under several years, use a low risk large cap, growth and income fund.

Answer 7

get ready to select this answer as the best answer

Well it depends on your
Age
your expected outcome of any investment choices you make
debt toincome
credit card debt
you see...there is really not one answer but I am going to do with 10k of my own money in 30 days..
go to PROSPER.com
and what I am going to do is loan money on a peer to peer platform
basically it is people who are seeking loans on a peer to peer
platform rather than a institution to peer platform

if you read the info on here you will see how it works
you are basically making loans to individuals and you do it on a piece meal basis rather than risk it all in one basket
For example
lets say JOE needs a $1000 he will put up a request and all the lenders bid on the loan
what I would do is loan $ 50 on that loan and other lenders do the same for what ever amount they feel comfortable with
so lets say 20 people put 50.00 on the bid
he is funded and prosper charges him 1% origination on the loan
the return really depends on his credit
if that account defaults the loss in VERY limited
this is EXACTLY how the big boys do it
warren buffet , D Trump and so forth
they also have charts on the default rates and they are suprisingly VERY low I mean VERY low
I was shocked but the site is legitamate and I am putting 10k of my own money on this ...
PROSPER.com

Answer 8

If you can use it to reduce debt - that can be one of your best assets. If you have no debt maybe an IRA. Or pay down on a good rental house, let the tenant pay the note, in 15 years or so you should sell the house and have a good profit.

Answer 9

Go to Clark Howard.com. He is the best. He gives understandable advice on investments that will help you.

Answer 10

well as a 16 year old, what i can say is pay some bills....if youre barely making enough to bring home, i say you drop some of that weight the bills put on you and pay some stuff like that...or if bills arent a problem, probly a nice vacation or cruise hehehe...or there are probly some things you may wanna add or do to your home...like redecorating...stuff like that...hope this helps..

Answer 11

before you guys do it, check out this book first
Stock Traders Almanac by Jeff Hirsch

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 74,000.00 and 30000.00 in taxble account. by follow simple rule