You have $5000 to invest... would you...?

Question

Would you buy 4-5 different stocks or would you slap it into a CD?

Answer 1

I would buy a bunch of skateboard decks

Answer 2

4 or 5 individual stocks is too many for such a little investment. You may want to start an IRA or mutual fund (if you are willing to earn money long term). A CD is a great idea because there is no risk. But, it is not going to earn you much money short term. It all depends upon how much risk you want to take and the lenght of time. If you don't mind the risk, you could invest in currency. Look it up. Risky, but could pay off. Or, do some day trading.

Answer 3

If you want to invest but don't want to know anything about the market, you should buy an S&P indexed mutual fund. If you want to learn about the market, then the first thing you should do is see what the best traders are buying and selling and why. This is the idea behind the site http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck!

Answer 4

There is money to be made in the stock market.

But it seem that most of it is made by insiders.

It's not hard & don't take a lot of money to set up an online account.

Take say $1,000 if you want & try the market out. Put the rest in a CD.

It's almost like gambleing but hey don't get greedy, seek as much information as you can. Don't put it all in one stock.

If things go well then you should think of putting more money in.

If not it may well last long enough for you to get a little smarter about the stock market.

Answer 5

Put your money into a 12 month CD and use the time to read and learn all about long term investing.

Answer 6

Assuming you are not going to touch the money for at least 5 years ...I'd put 30 % in a mid cap index fund, 30% in Small cap index fund...30% international index fund and 10% in emerging technology fund. I would put them in to a Roth IRA if you are going to not with withdraw until after age 60. Look at index funds from Vanguard which have generally lower expense costs than most others.

Answer 7

Your best bet is to invest it in Vanguard Equity Income fund. this is a well managed fund . You only need $3000 to start and you can add $100 to it anytime. Over the long run you can earn 10 to 12% if you reinvest all you div and cap gains. Try it you will like it call vanguard they will send you what you need to get started and the best of all you wont pay any commissions.

Answer 8

I'd put the money in a money market fund and slowly put the money into either a Roth IRA or a low-cost index fund. if going with individual stocks, I'd go with those with drips or into a penny stock for a specific time only. maybe buy a R. Max Bowser-recommended one where you sell half the holdings if it doubles in price and the rest if it drops by 25% after that.

Answer 9

Depends, how old are you, how much do you make, what are your liquid assets, what are your expenses, what will be your risk management decisions in the future? I work for a certified financial planner, I am their intern now. Everybody has different risk management decisions to make. Maybe even an annuity would be helpful to invest in, if you are expected to live longer than what your finances will provide you. There is not enough information to really answer this question.

Answer 10

Unless you have an understanding of stocks, I would avoid it..... place it in a CD.

Answer 11

why dont you keep it in a fixed deposit for 12 months, if you still dont need the money then further re-new the contract....

i always keep my xtra cash in fixed deposits...

Y is fixed deposit good? High interest
The dis-advantage: u r unable to widraw without penalty before maturity