Any ideas in what to invest $10,000?

Question

Not much money...but absolutely enough to support one good idea :).

Thanks alot!

Answer 1

1) If you don't have one already, open an IRA account (Roth or Traditional) and put $4000 into there.
2) Start an emergency fund that can last you for 3-6 months in case something happens to you such as losing a job or being hospitalize.
3) Put the rest into an online savings account (make sures its in the United States and its FDIC insured). I open mine at EmigrantDirect.com and they have an annual interest rate of 5.05%. All you need is a checking account at your current bank to transfer money between your checking and your EmigrantDirect savings.

I don't know why people would suggest CD's. Most are earning interest rates below inflation and if you need to take money out right away before the maturity date, you have to pay a penalty. But if you want a CD, EmigrantDirect offers CD's that has 5.75% interest.

Answer 2

It depends on whether you want to have access to your money or not. If you want to be able to withdrawal money at any time and still good good interest on it I suggest 2 different places. You can go to ING and open an Orange account which is paying 4.50% this month. This pays monthly, interest changes monthly and it doesn't cost you anything and you can transfer money to your checking at any time http://www.ingdirect.com or you can go to
http://www.amtrustdirect.com where they are paying 5.30% on a money market account. If you know you don't need the money for a year, the amtrust is paying 5.46% on a 12 month CD.
$10,000 is probably not quite enough to buy a house or condo (figuring the closing costs) but I would call a few Realtors and see what they say. Perhaps a buyers agent would be a better choice since he would be working for you. Real Es ate is always a good investment if you are willing to hold on to the property for a few years or more.
You could call a broker with one of the larger firms such as SmithBarney or ING and discuss a portfolio of different mutual funds that can make money for you.
It all depends on how long you can have your money tied up and what you want to do. Good luck, and have fun with it.

Answer 3

I would NOT hire a financial manager. Many financial managers I have met are not overly knowledgable. More importantly, their economic incentives usually are in great contradiction with your own. They may convince you to invest your money in some wacky life-insurance policy or other investment that won't bring you the highest return....but will try to convince you to undertake that investment as it will give them a high commission (or it might create business for one of their business contacts/networks who will in turn bring them business).

If you take the time to read some investment books, do research on the internet, and talk to many people for input, you'll end up having a solid foundation of knowledge which to apply to your investments - and not need to pay a financial manager to make the decisions for you.

I'm not aware of a lot of your personal factors such as your monthly income, prospects for wage growth, etc, but if you curre tly rent, it might not be a bad idea to apply that $10,000 towards a down-payment on a home/condo. Investing in a home is probably the best investment out there as you are building equity instead of throwing it away in rent....and right now, we are in the middle of a buyer's market and you will have the upper-hand in negotiating the price of the place you would buy.

Answer 4

How much risk do you want to take? If the answer is none - then purchase Bank Certificates of Deposit - check bankrate.com for highest yields. If you want to take some risk but want a higher return - buy a mutual fund.
If you feel you can handle the investments yourself - open a brokerage account at a discount broker.

They key issue is the amount of money you expect to make with your $10,000 and whether you are prepared to lose all or part of it.

You should always have some cash and savings for unexpected events in life.

Answer 5

Since you really want to invest $10,000 then find a venture or a small business that you can help in a start up. That's way you can become a partner of the business and recieve a gain in the future. However there are other ways like start your own business, and invest in stock.

Answer 6

If you are not in a big hurry to immediately plug your money into something and you can afford to wait a couple of weeks I may have a very good idea for you.

Over the next two weeks I will personally work with you to teach you a very interesting strategy that will consistently generate MONTHLY returns greater than what any bank would pay you in a YEAR.

I can teach you this system for free and you can decide for yourself if it is an appropriate opportunity for some of your investment dollars. No cost, no risk, no obligation......just some free education.

http://www.15daytrial.com

Answer 7

First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.

Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay. (Depending on the rates, you may want to pay off the mortgage and student loans as well.)

Third, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will save you a lot of money in the long run, because you won't have to pay rent.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

http://www.vanguard.com/VGApp/hnw/planningeducation
http://finance.yahoo.com/funds
http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/2007/vitindex.html
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education

Answer 8

i have that same scenario coming up myself soon here. with a house that im selling. i will spend between 5 g's and 20 g's on land. have to do your research but if you find a good lot. it may be a good play.

its long term more so than short but thats what i would do with 10 g's. find a good lot, sit and then try to dump at 3X times what you paid or double at least?

Answer 9

Find a good financial manager. You'll get much better advice than on an internet website. No offense fellow yahoo answerers.

Answer 10

find someone who is selling a house and offer to put the 10k in repair. It will up the value of the house probably 30-40k. Pay to have it appraised before hand, and split with the owner whatever the house sell after the fix up. you should at least double your money.