What should i do with my money? cd's/annuities or what?

Question

Got 20 thousand saved up and i want to put to work for me, what should i do? i want something that wont make me loose my money. I found a bank where i can get a 6 month CD at 5% is there better options for me?

Answer 1

I'm a stockbroker, so if you want NO-risk, the best thing right now is an ING account. It gets about 5%, and unlike a CD, you can take your money out at any time because it's a bank. 1-week T-Bills are a little higher, but your money will be illiquid for at least one week, it may take up to three for everything to get cleared up and reconciled for your things to become available.

If you need something else, write me privately.

Answer 2

The rate of return on a CD is often related to the risk. Even banks can go bankrupt.

5% is a reasonable rate in the USA at this time.

Investing is a big subject so I will try to give you only one idea in this answer: Diversification. Your money is much safer if you divide it and invest the parts differently.

So you have $20,000. Why do you have to put the whole $20,000 in one place? Are you getting a higher rate for $20,000 than for $5000 ? Maybe you could divide the money into four parts of $5000, and invest each part separately. One advantage of this, if you suddenly need some cash, less than $5000, then you don't have to cash in early (with possible penalty) on the whole $20,000.

Having some money available on short notice is called "liquidity" - and liquidity has value. For example, if you keep $5000 in your bank account, you might save on banking fees. You might be able to raise the insurance deductible on your car insurance, and get lower insurance rates.

I suggest if you are a young person that an annuity is not a good idea. The best long term investment, historically in the USA over the past 100 years, has been investing in publicly traded companies in a well regulated stock exchange like the New York Stock exchange.

So my suggestion is like this:
Divide the money into parts.
Put $5000 into a 6 month certificate of deposit at 5%.
Keep $5000 in your bank account that will waive transaction fees for maintaining a minimum balance.
Slowly start investing in stocks. An easy way to do this is each month, put about $500 into a stock index fund based on a broad index, such as the Dow Jones Industrial Average, or the Standard and Poor's 500.

Answer 3

i hope u already have an a/c with a bank.. if they have brokerage services .. ask for money market funds .. they are low risk and have good returns.. try not to go for online banks or something.. visit a brank break up ur money into parts in funds like growth funds and income funds which would result in some interest or dividends,

CD's are the mostr secure form.. visit a branch or any good bank near you like National financial, or JP morgan or lehman brothers investments, Ameriprise,, etc

Answer 4

You can get 5% from a checking account at HSBC.com and then your money isn't tied up. If you don't mind tying your money up for a while then I would invest in multiple corporate bonds.

Answer 5

with what online banks are paying you would be better off going that route and you money will not be tied up for x months. especially since you do not want to take any risks.

and as wwipg.com stay away from them.

Answer 6

yes thire is a better opption and it,s one i personaly use check out gold price,s per coin or roll easly perchesed from any gold or coin dealer go,s in your safty deposit box take,s up litttle space and very very valuable and will go up in value no matter what stay away from silver thought you need it by the pound to make any profit \\ i know the canadien maple leafe is one of the best value,s out on the market right now and at $ 445 usd per coin one roll is $8900 usd ???? think it over

Answer 7

go to www.bankrate.com for the highest yielding FDIC insured CD's in the nation.