How can I make the most of my little money?

Question

I have $20,000, what can I do to make the most of it other than putting it in a saving account? By the way, this is all I have so I am not up to some risky plans. Thank you for any advice.

Answer 1

Assuming you are debt free and own (or are buying) your place of residence.

What is Risky?

Inflation has averaged about 4% a little less lately but 4% is a good number. Where ever you put your money if you are not making at least 4% you are losing money. To me a savings account is far more "risky" than the stock market. The averages savings is what 1%, you are guaranteed to lose 3% a year, sounds very risky to me.

Best Savings - www.emigrantdirect.com 5.05%

Money Market account or CD about 5%

Bonds and T-Bills 4% to 6%

Mutual Funds (many stocks), ETF (exchange traded funds - many stocks), and Stocks.

If you are going to make any kind of money above inflation you have to be in the stock market. Oooo scary sounds risky, maybe not.

IF! you were to go for an ETF or a mutual fund like the vanguard VTI for example. -This is only an Example as there are hundreds with all sorts of risk tolerances-
Vanguard VTI is for people
1 seeking long-term growth of capital.
2 seeking broad exposure to the U.S. stock market.
3 with a long-term investment horizon (at least five years).
Returns: last year 12.02%, last 5 years 10.12%, last 10 years 8.27%
Taking out inflation of 4% the real return would be about 4% to 6% a year with relatively little risk.
This is essentially low risk, as it has a very large number of stocks.

Just something to think about.

Answer 2

I think a forum like this is the last place you want to ask what to do with your money. Find a family Friend or someone responsible and established to guide you. A financial adviser is a good idea. Be careful asking questions like this on the Internet. Good Luck!

Answer 3

what's your timeline, when will you need it? are you 20 or 60? If you don't need it to live on, and you won't for a while, you can live with a higher degree of risk (and commensurate reward) than if you gotta dip into it to pay the groceries & rent.

I read a good rule of thumb formula in the paper today: subtract your age from 100, the resulting # is the percentage of your assets you should have in equity (vs. bonds). So, if you are 30, you can put 70% of your $ in play.

Don't be afraid of stocks! Key is to diversify, spread the risk around. Consider a no-load mutual fund.

If you are young enough, sock it away in some shrewd investments; it will make a nice nest egg for you when you need it later for house/kids/retirement.

good luck!

Answer 4

Put it in a high interest savings account like ING Direct.

Answer 5

I have lots of free sites where I made a lot of money. Plus I have a tutorial. You can find sites and tutorial here:
http://www.google.com/base/a/1639261/D9317629329281990324

Answer 6

I know a company currently offering 25% annually in USD, EUR or GBP without risk.

Answer 7

INVEST IT INSTEAD OF JUST SPENDING IT

A FINANCIAL ADVISER SHOULD BE ABLE TO GIVE U IDEAS
GOOD LUCK

Answer 8

i don't know which place u belongs from.but as a suggestion u can start any retail business or any chain retailing business if ur really interested for doing ur own business.