I have 5k should i invest it on MUTUAL FUNDS, there's like 3000 of them though, which are the top ones? What about Bonds? I am investing this for the long run, i am 27 and will not be using this money for a long time...Any advice is appreciated...Thanks
2007-06-06 11:47:53 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Buying property, a house...that could also be an option, but i just feel it's alot of money to keep up with a house this days...
2007-06-06 12:00:40 · update #1
I do have a 401k plan currently with my job and Merryl Lynch is managing that...
2007-06-06 12:21:03 · update #2
You can get a fund-of-funds and then your money will be diversified across many different funds. These mutual funds take your money and place it into several underlying funds. It makes investing very easy. Also, you should find one that has low fees.
Vanguard has several good fund-of-funds. If you are interested in retirement, pick one of their target-date retirement funds. For anything else, you can pick one of their lifecycle funds.
If you want to learn more about mutual funds and retirement investing, then click on my profile and read the info to find my web site. I have a free downloadable book that will teach you everything you need to know about investing.
2007-06-06 11:56:26 · answer #1 · answered by derobake 4 · 0⤊ 0⤋
Hold on tiger!
We need to know your short-term and long-term liquidity needs. For instance, are you looking to buy a house or condo in the next couple years? Also, do you have an emergency fund of about 2 months pay to fall back on?
If in the event you will not use this $5,000 in the near-term, you should investigate what type of retirement plan you have at work as well as Roth IRA and IRA options for tax-deferment .
Since you are 27, chances are you would be looking for more aggressive returns in equities. I would suggest you look at no-load mutual funds, equity index funds or electronic trading funds. Depending on your risk tolerance and need for liquidity, you will have many different options available to you.
Avoid high-expense, under performing funds. Look at expense ratios and compare them with similar type funds through different investment houses. Index funds tend to have lower expense ratios since they track the market and are more passively managed.
2007-06-06 19:04:37 · answer #2 · answered by John D 2 · 0⤊ 0⤋
A good place to learn about mutual funds is Vanguard.com. You will be able to use several tools on their website for free to find a fund that will suit your needs.
Also you may want to learn about mutual funds by visiting some popular investing websites and getting their opinions.
2007-06-06 23:21:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Invest in property. Less risk than stocks and mutual funds. Or invest in currency like the Euro. Or just keep it in the bank, at least it's FDIC insured there. If I was investing in the market, I'd put stocks into alternative energy companies, personally.
2007-06-06 18:52:59 · answer #4 · answered by ANSWER MY QUESTION!! 6 · 0⤊ 1⤋
Be very (very) careful. You're asking strangers for advice. Their qualifications and motives can't be verified.
Try reading a basic book on retirement investing. It will give you some of the insight you need. (actually 2 books would be best).
2007-06-06 23:09:51 · answer #5 · answered by Common Sense 7 · 0⤊ 0⤋
your situation is have the money but don't know where to invest. i think you should invest in education first. you can either do courses or buy investing books.
2007-06-08 01:06:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋