2007-07-15 10:33:22 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It's up to you where do you want to put your money to grow, but my best suggestion is to open a CD (Certificate of Deposit) with Bank Of America.
The minimum is $5,000 to open and it's a commitment of 8 months, you're not allowed to withdraw funds from your CD until the 8 months have passed. The interest rate is 5.10% if you open it online, and with your $20K, you'll earn circa $83 a month and in the 8 months $996.
Just use the formula, $ x Interest rate (APR) x 30, all divided by 36500, it will give you the result of how much you'll earn each month on your CD.
Think about it, it's the safest way to invest and to make your money grow, my best regards.
2007-07-15 11:56:48 · answer #1 · answered by Anonymous · 0⤊ 2⤋
What is the money for? If you intend to spend the money within 5 years, you should avoid the stock market. In that case, a money market fund is a good option. If the money will not be spend for at least 5 years, the stock market is historically the best long term option. Good mutual funds are best unless you have the time and knowledge to select individual stocks.
2007-07-15 17:41:57 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
What do the funds represent?...emergency funds, savings for a short term goal, savings for a long term (10 years or more) goal?
If you will need the funds in a short time (6 months to 3 years) your options are CDs, Treasury Bills, or Momey Market accounts.
For long term investments I would suggest that you consider one or more no-load mutual funds: a broadly diversified U.S. equity fund, an international fund, and a total bond market fund. Look at the funds available from Vanguard, Fidelity, T. Rowe Price, Schwab, and other companies offering no-load mutual funds.
2007-07-15 17:59:33 · answer #3 · answered by skipper 7 · 0⤊ 0⤋
Every three months buy $500 worth of common stock which 1 pays dividends, 2 increases it dividends every year or two, 3 pays less than half of earnings per share in dividends, and has good long, long term prospects. Then cause dividends to be reinvested. If you do not die in a decade, you will be well to do.
2007-07-15 17:43:54 · answer #4 · answered by Edward Hyde 2 · 0⤊ 1⤋
It depends on your goals with this money.
For short term and to be able to get to it easily, try an online savings account. They pay better interest than conventional banks. All you need is internet access to your checking account. You set it up online and do transfers from one to the other.
Here are 3 really good ones...
https://www.fnbodirect.com/01d/html/en/ currently paying 6.00%APY
http://www.hsbcdirect.com/1/2/1/offer?code=PPGA500000 currently paying 5.05%APY
https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp currently paying 5.05%APY
If you want to put the money away for a while for retirement, a good mutual fund would work.
Check with Vanguard or Fidelity.
https://flagship.vanguard.com/VGApp/hnw/home
https://www.fidelity.com/frameless_pr_B.shtml
2007-07-15 17:41:26 · answer #5 · answered by mister_galager 5 · 0⤊ 1⤋
That depends on your risk level, your liquidity and your time frame...
CDs are a good short term investment
Mutual Funds are wonderful
Stocks & Bonds are good but high risk
You should go to your bank and ask to see their financial planner on staff, they can help guide you into the right investment for you.
2007-07-15 17:42:42 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Fedelity Select Mutual Funds
Aerospace
Telecommunications
Biotech
Pharmacology
2007-07-15 17:37:24 · answer #7 · answered by Mike Frisbee 6 · 0⤊ 3⤋