Save in the bank, buy a house or stock?
2007-01-12 07:12:04 · 4 answers · asked by union4david 2 in Business & Finance ➔ Investing
Faster? Some stocks might do that. Lockheed (LMT) has been good. Last week it was about $91 and change, today it is more like $96 something. A thousand shares of that would have made you $5k for the week (but then by next week it might be down, things like that do happen), or your bank might pay you something like $2.73 or 4 per day for each point of interest they pay (say 4 percent, that would be about $10 or $11 a day). If you bought a house with that money, it would take you a month or two to sell it whether at a profit or not.
The bank is safest and regularly pays every day. The property is something that you just can't cash out whenever you feel like it. Stocks, however, depend on the moods of a million people figuratively arguing at what the value this company or that is worth at any given moment.
So (getting the voice just right), Do you feel lucky? Huh?
2007-01-12 07:34:58 · answer #1 · answered by Rabbit 7 · 0⤊ 0⤋
The bank accumulates interest immediately - stocks may go down in value or up, no telling for sure. Buying a house is a longer term investment, because the value probably won't change within a few days, weeks, or even months - usually. And if it does increase a little, you still have to offset the closing costs you sank into it. If you want a longer term investment that will pay off the most it is usually real estate, then stocks, and bank last
2007-01-12 07:16:57 · answer #2 · answered by walkinandrockin 3 · 0⤊ 0⤋
If you put it in a savings account or CD, your likely to lose money to taxes and inflation.
Right now housing prices are declining in many parts of the country. This is good if you want something to hold for 7 to ten years. Otherwise you might make no money in the short term.
The stock market has been on a tear for a long time, which usually means it's time to sell. But the long term appreciation of the US stock market has been 10% a year compunded and, if you know what you're doing, you can beat that.
So I would say the stock market is your best bet.
2007-01-12 07:19:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Invest it. Buying a house is a good idea considering the ROI (return on investment) is usually pretty good. But with the housing market being in a slumpo, and the amount of time it takes to have that ROI pay off, I say u should invest in stocks. If you want moeny advise you should check out Mad Money with Jim Cramer. He has books about how to invest smartly, and he has a TV show. He is really on top of it and will basically be an advisor without u having to pay the ridiculous commission/fee
2007-01-12 07:17:25 · answer #4 · answered by Heart of Gold 3 · 0⤊ 0⤋