I just inheireted about $5,000 what is the best way to invest it?

Answer 1

Congratulations. First thing you need to do it put it in a bank account - like a savings account - that earns interest, and look for the highest interest rate there is (Yahoo Finance would be a good place to search). Right now, the interest rate for savings is quite low. But if you shop around, you'll get higher rates. The Internet Banks seem to have higher interest rates. Check out HSBC which claims to give 5.25% APY on a 9-month CD. You want to put it where you can't easily get at it. Savings Bonds are really good because, after you purchase them, you can't even cash them for like 6 months and the current rate for Series EE bonds is 3.6%. I have savings bonds taken out monthly and am hardly even aware of it.

Some people are going to suggest stocks. Stocks are for those who are really good at it, and even then the experts claim that it's still a cr*pshoot. Rather than risk your money, I'd put it in an interest-earning vehicle where you'll come out ahead. And, at the end of the year at tax time, you'll have to pay tax on any capital gains on the interest earned.

Others are going to tell you to put it in an IRA or 401K. These are both based on mutual funds which is - the stock market. Again, uncertaintly, true run by mutual fund managers (who charge for their services), but still risky.

Depending on your situation, it might be a good idea to invest in yourself, in training or education, a curriculum leading to some sort of certification or degree.

Answer 2

When doing the taxes for the year I inherited some money, I discovered that if (and it was a quirk of how the numbers fell, it doesn't work for everyone or even me for every year) if I plopped $2,000 into an IRA, I would get almost the whole thing back in a tax refund. Check with who does your taxes and see what impact that would make for your situation.

A good Exchange Traded Fund (ETF) will help you buy into a range of things that interest you--which is important for personal satisfaction if you are investing, you get to say "I'm part of this" when the financial news is played.

Consider (symbol) NY which is an ETF that holds in each of the top 100, by market capitalization, companies listed in the New York Stock Exchange. These big companies make big profits, often consistently for years. Another is DVY, an ETF that holds stock in the top 100 best dividend paying stocks in a Dow Jones company index. If you are adventurous, consider PXN a PowerShares ETF that holds the top players in the nanotech industry, some simply amazing things are being done there. Break it up among several things that interest you. BTW, with the drop in the value of the dollar, gold would be something to check into, so consider Ishares IAU which buys actual gold bullion.

Be sure to save some of it to do something fun and in the middle of that stop when you've got a bright smile on your face and say, "Thank you ----". While you are feeling grateful, also consider making a gift in that person's honor. I left my mother's embroidery machine to the clinic where she had her chemotherapy and the ladies were ecstatic over the gift.

Answer 3

1 Pay off debts

2 IRA if you work. You have until April 15 2007 to contribute to an IRA for 2006. You can put up to $4,000 each year into an IRA for 2006 and 2007.

3 S&P 500 Index mutual fund if you can handle some risk

4 Certificate of Deposit if you cant handle risk

Answer 4

Pay off any credit card debts first. Then put the rest down on the best mileage car you can afford. I have a 99 Honda Civic that averages near 38 MPG - value is maybe $7,000. Then buy CRT at Ameritrade brokerage on the Internet.

Answer 5

Go to a full service broker and make a diversified investment until you know the ropes. Don't get scamed by some unscrupoulis broker

Answer 6

Put it in a CD at the bank........(Certificate of Deposit)
You can divide it into three ways if you don't need it now.!
You can put $1500 in one CD for 1 year to 3, or 5.
Put another $1500 in one for 2 years
Put another $1500 in one for 3 years.
Then put $500.00 in your checking account for current bills.,
My husband and I did this when we had 5,000.00 extra..We were so glad we did, because right b/4 one was due in a month, We needed a new furnace and when it came due, we used it for the furnace..Good luck....PS... Maybe give $100.00 to the nearest soup kitchen in your area to feed some of the homeless !

Answer 7

Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

I am sure that you can get your answers in this website.

http://investing.sitesled.com/

Good Luck and Best Wishes!

Answer 8

1) Certificate of Deposit @ Everbank in Euros (NOT US $)

2) Gold coins in a safe deposit box @ your bank.

3) Gold shares (GLD or IAU @ a Scottrade account)
Silver shares (SLV in the Scottrade account)

4) A mutual fund through Vangard, Fidelity or Dodge & Cox
(my favorites)

Good Investing to you!

;-)

Answer 9

Open an account with Scottrade; then do some research to find some promising stocks. Some leads to check out:

AMGN, SYK, EBAY, HD, GRP, WAG, BFAM, PAY, LLTC, JOYG, ATHR.

For good guides to stock picking, check out my amazon list:
http://www.amazon.com/ONLY-THE-BEST-Stock-Market-Investing-Books/lm/R5DVC6XMKXTJM/ref=cm_lm_byauthor_title_full/103-8216915-4405457

Answer 10

Buy shares of a fund that follows the Warren Buffet model.