Financial advice please?

Question

I work a seasonal job. Meaning there isn't much work for me in the winter. I was wondering what would be best for me to invest my money in. Like stocks, bonds ect. Or which stock is the most reliable as far as gains vs. drops. I would like to invest in something that I know will go up. Anyways, your thoughts?

Answer 1

The most reliable and safest would be US government bonds, sometimes called treasury bills or T-bills. But you won't earn enough to beat the inflation rate.

If you have a long timeframe, I'd say put your money into a couple of different index funds. Find funds that track a particular index, like the S&P 500, the dow, etc. Maybe one that tracks foreign indexes, like a broad asian index of some kind.

In the long run, the US stock market has always gone up by an average of about 10%. This even includes the drops caused by depressions, like the Great Depression.

But your best bet would be to find a for-fee financial analyst.

Answer 2

I know a savings account or CD will go up, anything else nobody knows. This is at least if you mean between now and winter, if this money is needed to live on in the winter keep it in cash savings or a CD. Longer term is a different issue but under 2 year time from should be in cash, usually bonds would be an option also but I currently see cash as a better return because once you pay fees cash has a higher yield which is strange but thank the online banking gods.

Answer 3

Only bank savings a/c and government bonds are sure to rise, but the rise will be modest. In the stock market nothing is certain. All you can do is assess the risk/ reward ratio and take the plunge.

If you have a more than 5-year horizon, suggest you put your money in income type mutual funds investing in equities and having a good past history.

Answer 4

If you want to invest in something that will go up then buy Berkshire Hathaway.