capital upon maturity. What kind of investment products should I consider to get maximum returns given my profile ?
2006-10-06 12:26:19 · 7 answers · asked by Phantom of the Opera 4 in Business & Finance ➔ Personal Finance
As others have invested CD's are a guaranteed way that you will get your investment back (assuming you are below the $100,000 FDIC approved amount), but a second option is something called Money Market Funds. You CANNOT lose your principle, however there is a good chance you will do better than a CD. Another way that you cannot lose money (unless the government is overthrown and you then have bigger problems is municipal bonds (i.e. what you probably know as savings bonds), but there are other types of municipal bonds as well.
2006-10-06 13:46:22 · answer #1 · answered by AirDevil 4 · 0⤊ 0⤋
Unfortunately to be risk adverse and an investor are not compatible, if you want to get a good return on your money. By your profile the only thing you could do is put it in a savings account or CD, but you actually then DONT get back your capital because inflation outpaces interest. Gotta take a few chances in life.
2006-10-06 19:33:16 · answer #2 · answered by The Scorpion 6 · 0⤊ 0⤋
Rule of thumb: Have 3 months income tucked away in money market or CDs.
Second rule: Individual stocks require an almost full time effort to monitor and trade. Go w/ a mutual fund. Yahoo Finance has a good section on types of m/f and how to measure risk vs. return. See also Morningstar
2006-10-06 19:29:40 · answer #3 · answered by Joe Cool 6 · 0⤊ 0⤋
Okay, YOU ARE NOT AN INVESTOR. What you have described makes you a depositor provided you park the money into a bank or mutual fund money market account. This is what I would do because CDs are subject to early withdrawal penalties.
PS. The proper term is "risk averse".
2006-10-06 19:35:29 · answer #4 · answered by snvffy 7 · 0⤊ 0⤋
The phrase is "risk averse".
If you are willing to accept no risk of loss of capital that rules out stocks and mutual funds or any other equity and leaves only interest-bearing investments (CDs, bonds, etc.).
2006-10-06 22:30:39 · answer #5 · answered by frugernity 6 · 0⤊ 0⤋
You are not an investor. Put the money in a savings account or a CD.
2006-10-06 19:39:08 · answer #6 · answered by Chuck 1 · 0⤊ 0⤋
do like I do. Put your money in certificates of deposit. Banks are now giving pretty good rates now. At least you won't loose any thing if the market goes down.
2006-10-06 19:30:06 · answer #7 · answered by Tired Old Man 7 · 0⤊ 0⤋