I have 10K to invest. What would be the most profitable place to put it?

Question

I want to get the most bang for my bucks.

Answer 1

if you are working, I would put $4000 into a Roth Ira with Vanguard, keep $1000 in your bank money market account or savings account, $2000 in CD's at your local bank for maybe 1 or 2 year maturity, and the rest in regular taxable mutual funds, also with vanguard, call their 800 number and they can help you choose which ones to invest in. then go and buy investing for dummies and read it several times, it is not for dummies, then next year when you know more about investing take the money you have in the cd's and invest in more mutual funds. I would forget about buying individual stocks because you don't know what you are doing and you can lose money very quickly in individual stocks.....and start watching cnbc as much as possible and buy Investor Business Daily newspaper once a week and start reading it.......and you will do fine for yourself, or go and find a good stock broker with at least 5 years of experience and see what they say, if you don't want to do all of this yourself. good luck to you. remember the stock market averages a gain of around 10% a year in a good year, so what that other guy told you about some Swiss investment that made 300%, I would be very skeptical of that. never buy anything that you don't understand the risk involved.

Answer 2

I was in a similar situation a few years ago. Consider taking a portion of it and starting a Traditional IRA. The maximum contribution is $4,000 this year. Not only will you get the benefit of starting a new retirement account but a tax deduction as well. This tax deduction is above the line which means you get it regardless of whether you itemize or not.

But, just remember one thing...if you have a 401K or retirement contribution plan at work and make more than $60,000, then your contribution will not be deductible.

Until you can find someone to assist you with investing the remaining money, I would open a savings account or a short-term CD. Not good interest but it will give you a little something.

You might consider visiting a CPA that has a Certified Financial Planning credential vs. a financial advisor at a large brokerage house. They will not be as interested in selling a particular stock to you and will be more interested in getting you involved in an investment that is best for your portfolio.

Answer 3

Let's see, UST had a 664 percent return on equity while investors saw a 1 yr total return of 15 percent and 3 yr total return of some 77 percent. That was a lot of financial improvement for the market to only show a little piece of and since the stock price is still trending up, it looks like a lot of upside still to go. With a PE ratio of about 18, it definitely isn't overbought. One of the down sides, possibly, is that while it earns something like $3.12 per share, it pays out a dividend of something like $2.26 per share. Recently sells at about $56.36.

I don't know about MOST, but this isn't bad.

Moodys (MCO) went from about $50 in late July to almost $70 right now. It has about a 233 percent return on equity to go with a 15 percent 1 yr return and 115 percent 3 yr return to investors, so there's some slack. It has about $2.13 per share earnings, dividend is only about 26 cents, and at a PE of 32 might be a bit overbought, but maybe something good is cooking and it is worth that much and more? Check the news and see. It might be worth consideration.

A couple of things to think about.

Answer 4

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Answer 5

It's hard to say. You have to know if you want long or short term growth. My personal experience shows you must watch all of your investments if you are in the stock market. Real estate has some good bargains right. Banks are very safe. All depends what your investment objective is.

Answer 6

I put 30,000 into a CD at a bank and in one month I gained $990 in interest. When you do a cd they give you higher rates of interest then lets say with a savings account. And that was only at 3.30% My cd is expiring in 08' and then you have to pay $$ (taxes) on the money you gained from the interest but its not too bad.

But with cd's you usually only get a 1 time no penalty fee to withdrawl from and any time after that it is a $175.( for me) charge to withdrawl. Plus the lower the amount in the bank obviously the lower the money gained from the interest.

Answer 7

Long term investing I would say to break it up into a few things. Put some of your money into real esate (if you can) and some into retirement options. Keep some of it liquid as well just in case of an emergency.

Answer 8

Consult with a financial planner, such as Raymond James or Fidelity Investments. Their fee is minimal and they can manage your investment according to your risk tolerance. Of course, there are many other options, but this is one of the wiser choices.

Answer 9

MMmmmmm Stock but it's risky you could also look into opening your own business but that's also risky.... Check into your banks they may have some amazing savings plan for an amount that large that will make sure that your investment is protected.

Answer 10

if your'e going to open a ROTH IRA with it, i'd suggest TDAmeritrade.com ......you can trade stocks with it but be protected from taxes until you take it out.

and commissions are a lot lower than Vanguard

and read this book before trading:
Technical Analysis of Stock Trends by Magee, John; Edwards, Robert D. 5th Edition