I have Ten Thousand Dollars so what do i do?

Question

it took me 6 years but i have paid my way out of 8600 dollars worth of credit card debt..... paying this debt off gave me the discipline to save once the debt was gone.... i have 10,000 dollars sitting in a high yield money market account and i need wisdom..... where can i invest this money that will make it grow..... not looking for mlm or any get rich quick schemes.... just a good way to make my money work for me... thanks

Answer 1

invest in real estate. it is bound to give you amazing returns albeit after a while.

Answer 2

FIrst of all -- congratulations on your accomplishment. There is nothing wrong with using a credit card as long as you can exercise restraint -- you have learned it now. You don't say how old you are -- I am assuming a young adult? A money market account is a good choice for some of the money so you can get at it if you need it for an emergency -- like $2500. Then I would start an IRA -- it is tax deductible and also it is never too early to start saving for retirement -- maybe $1000. The rest I would invest in a couple of different mutual funds -- maybe one stock fund (like an index fund -- mimics the stock market as a whole) and one intermediate bond fund (it balances out -- if the stock is pokey, the bonds will go up). You can set ALL these things up through Schwab, Vanguard, Fidelity, or any number of very reputable investment firms. See what is nearby and find a PERSON you like and develop a personal relationship with them. Good luck!

Answer 3

The 10K might make a very good emergency cash fund, something everyone should have. Ideally, you should have about three to six months of living expenses saved up in an emergency cash fund, to protect you in case of job loss or inability to work because injury, illness, etc.

If you don't need the 10K for an emergency cash fund, invest it for long term growth. The easiest way to make your money grow without taking excessive risk is to put it in a lifecycle or target date mutual fund. These funds are for long term investment, and are managed in a way that diversifies your risks (so that you don't have too many eggs in one basket). Lots of mutual fund management companies offer lifecycle or target date funds. Vanguard and Fidelity offer these types of funds with pretty low costs. These funds can drop in value if the stock market drops, but over the long term, they should do pretty well.

If you want to use some or all of the 10K as a downpayment on a home, you may be better off keeping it in the money market account until you buy the house. That way, the money you plan to use to buy a house isn't subject to stock market risks.

The website listed below discusses saving, investment and retirement issues. The information is free.

Answer 4

Since you a have paid off your debt you have increased your credit score ..Which is a great thing !! The best investment you can make is in Real Estate .. Real Estate appreciates, you get tex benefits , someone else is paying the mortgage for you !!! You can start by going to local real estate meeting( google rei + your town) in your town and just start talking to people a deal will come your way.. Feel free to contact if you have any questions ..i would love to help you

Answer 5

(1) Read the book "Rich Dad, Poor Dad"
(2) Read books from libraries about how to invest in index mutual funds, then start investing in them. Consider using Scottrade at www.scottrade.com which I like a lot.

(3) Read about "Investing" in mutual funds at www.daveramsey.com You may want to read his book "The Total Money Makeover"

Answer 6

Interesting question!

Answer 7

Invest 5K, and have fun with the other half.