in thinking of investing some cash, lets say about 10000. what are my best options?

Question

i was thinking money market and cd's, but i just heard i woudnt get a big return unless i go long-term. how about mutual funds, how they work?anyone know? i dont mind taking risks

Answer 1

Real Estate, promble with Americans is that if we can touch it we will spend it. Make it difficult and the leverage is great in real estate right now. Example if you invest in a mutal fund with $10,000 and make a very good return of 12% you made $1200 that year. But buy a rental house or condo that cost say $80,000 put 10% down and put the other $2,000 up for emergencies. You will proabley even make a $100 a month on the rent, that alone is your $1,200 you would of got from the mutal fund. If the house goes up in vale 4% you would make $3,200 and just making the mortgage payment will pay the loan down making you another $1,600. Thats 1200+3200+1600=$6000 In one year.

Answer 2

your question can not be honestly answered without you having developed an overall financial plan. By 'overall' I mean lifetime financial plan.

Building one requires far too much information and discussion for this forum.

I STRONGLY suggest you do a fair bit of research on who you are, where you're going, where you want to go, and how you think you might get there BEFORE you do anything 'permanent' with this small amount of cash.

I say 'small amount' because retiring (that far off someday) will require 1/2 million or more in assets and 10k is small compared to that.

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That said, what you need is a temporary home for the 10k until you get a plan built that you like. For that, either a six month CD or a no-load money fund will work fine.

If in six months, you find that you still don't have a plan built, let the cash ride and re-commit to building a plan.


Btw, the majority of the 'planners' out there are either too pricey for you or are really salespersons for some company who are looking for a commission, so building a plan is very likely a do-it-yourself kind of thing.

Answer 3

buy a house, live in it and fix it up, then resell it. that always works. there is no for sure way to make quick money. good luck.