I am maxed on the 401k contibutions thru my employer. IRA and Roth IRS only let you contribute $X per year. What are money markets? Should I just open a mutual fund account and invest it that way? I'm in my fourties and will continue to work.
2007-07-10 07:05:05 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Money markets are basically savings accounts that pay you an interest rate based on the current value of money.
Mutual funds are a good way for the beginner as they spread the money out across many companies stocks and spread the risk of loss out.
Having said that DON'T invest in a mutual fund that has a front end or back end load ( you pay a percentage -- usually 7% to the fund manager when you get in or get out) as you now are in the hole for that amount.
Try looking at TR Price and Vanguard who offer a wide diversity of mutual fund types (sector and geographical) and have low expense ratios (usually below 1%) and have no front end or back end loads. You should also look at how Mornigstar has rated the fund ( 1 star is low, 5 stars is high) which should show up under the snapshot for the fund at Vanguard- TRP site .
Remember to diversify as much as possible and being in your 40's and still working then you can be more agressive and not invest to much in bonds.
I would also stay away from annuities which I think are a scam.
Good luck..
2007-07-10 07:19:25 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If your tax deferred retirement accounts are maxed out, you only remaining options are, invest outside of retirement accounts, spend the money now, or give it away. I recommend some of each. A mutual fund account is a good option for the investment portion. If ALL of your retirement options are maxed out, and you don't have massive debt, you can afford to enjoy some of the money.
2007-07-10 08:41:31 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
I took mine and invested it in a home. If you already have one - consider investing in a rental property. Not only will it bring you income - that should cover your mortgage - real estate is the BEST investment. They aren't making any more land - the value will only go up from here. Right now, it is a buyers market! We found a house - and was able to get the seller to come WAY down on his price.
2007-07-10 07:09:16 · answer #3 · answered by greyeyedgirl 2 · 0⤊ 0⤋
You can start a non-qualified account and purchase mutual funds, index funds and/or individual stocks.
You could also put it into a high-yield savings account.
I'd recommend you go to a reputable financial advisor (ask for references) and see what they have to say. There may be different strategies you can take that are more beneficial to your future financial welfare than what we tell you. You also need to consider tax ramifications of whatever you do.
2007-07-10 07:15:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you're getting a good return on your 401, you can have more taken out but they just won't match it. I'd keep away from real estate because if you get a bad tenant, you could lose your shirt. Plus the fact that real estate isn't cheap like it was 20 years ago.
2007-07-10 19:08:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You should buy investment property and rent it out to make income.
2007-07-10 07:12:45 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Get free rates
2015-02-09 07:28:07 · answer #7 · answered by Jae 1 · 0⤊ 0⤋
And you do not have a financial adviser? Hmm.
2007-07-10 07:08:00 · answer #8 · answered by Anonymous · 1⤊ 2⤋
ANNUITIES!
2007-07-10 07:09:15 · answer #9 · answered by Dave A 2 · 0⤊ 1⤋