Investing $10,000??

Question

I am in the US Army and just got back from a deployment, i am looking into the best way to invest 10,000 dollars. Anyone with help?? Whats the difference between a "CD roth IRA, or money market" ??Help me out.

Answer 1

-Decide what you're investing the money for: retirement? down payment on a house? emergency fund? This will affect how long you can invest the money for, and what sort of return you need, and how quickly you may need to access the money - and all of that impacts which sort of account you choose.

If you don't have a retirement account yet, or don't contribute regularly to it, this should be your first priority. A Roth IRA is better than a regular IRA if you have more than 10 years until you retire. Check with your USO to see if there are special funds for military personnel - you might have access to better retirement funds than you could get at a local bank.

CDs are generally not a great investment, but mutual funds are, because they automatically diversify your investment and keep it safer.

Do some research - a little reading can make a huge difference in how you view your money! Don't worry, you don't have to be a financial whiz or even a big reader to get some good advice from these books:
-Investing for Dummies
-The Complete Idiot's Guide to Managing Your Money
-The Automatic Millionaire by David Bach

Answer 2

First, you need to decide what you are investing for. Without knowing WHEN you need the money, no one can give you sound advice. An IRA (roth or traditional) is for retirement ONLY and you can't invest more than $4,000/year. It does NOT indicate how the money is invested. A CD (certificate of deposit) is a contract to deposit a fixed sum of money in a bank for a fix time period at a fixed interest rate. The return is low compared to most investment options. A money market account is an investment in short term loans to major companies. It use a good option for funds you will need access to in 5 years or less. Mutual funds (collections of stocks) are a better option for long term investing. An IRA can be invested in ANY of these investments.

Answer 3

Hi,
A cd requires time...meaning you can't have access to your money (w/out incurring a penalty) in order to earn interest. Cd's come in many different time alotments...usually the longer you are able to leave your money untouched, the better the rate of return. An IRA is an individual retirement account...which is great if you want to invest your 10k for your retirement goals
Is liquidity important to you? (Do you want the ability to use it without penalty while it's invested?) If so, then a money market account is a great choice. Try countrywidebank.com. They offer one of the highest interest rates for your 10k invested AND you can link it to your personal checking/savings to automatically deposit/withdraw funds. The best part of a money market is that you are never penalized to withdraw your money. Just be aware that usually if your balance drops below a certain level, your rate of return will also decrease. Best wishes!

Answer 4

The first-rate you'll be able to get is by means of placing 3k into an ISA paying 6.five% and the identical cost in a internet saver. Several 'top avenue' banks to select from. You'd earn approx £sixteen per thirty days within the ISA and approx £31 per thirty days (nett) in a internet saver on 7k.