how would you recommend I invest $40,000?

Question

what would be best, CD's stocks,IRA's?

Answer 1

Sorry Annitte but you can not place $40,000 all at once into an IRA, only $4000 annually providing you make that much in wages. As for where to invest it. Currently t-bills are looking really attractive. At least in the short term. If the market falls another 20%, then the equation shifts somewhat and equities become really attractive. Actually, some are attractive at the moment--GS in particular and many bank stocks. People are scared out of their minds and perhaps rightfully so that the mortage mess is going to hit banks and financials really hard, but that has already been discounted a great deal in their prices and many are now paying 5% dividends. Some even more.

Answer 2

After the big drop yesterday, there are scads of stocks selling cheap (but you might want to wait until sometime next week to make sure that the dust has settled).

Take a look at these: AGO, HRS, JEC, ME, ORCL, SGP, SLB, SPN, TRN, WCG. There's more than a few reasons to believe there is some upside for each. Pick and choose what you might be comfortable with. For your amount, you can buy a fair batch of them all if you go a little light on the high dollar ones.

Answer 3

Pay off any debts you have FIRST. Put $5,000 in an interest paying checking account, just incase you need to put your hands on quick cash. Max out your IRA. With the remaining money buy into an annuity, buy some stock in companies that you have heard about all your life and also in some that you think maybe going places. Spread it around but make sure your not paying interest first, pay off debts.

Answer 4

Stocks are going to give you the best return but if you don't know how to use them then it could be your worst enemy so you should read books and set up a broker account. try a couple thousand and see how you like it. If your not comfortable with it then try the safer ones Like CD's and IRA's. But I think every one is up grading to MP3's :-)

Answer 5

A proper answer to your question is simply impossible without knowing your goals, situation, circumstances, and talents. You need to (contrary to all the advice here) decide after doing appropriate research into the options available to you. Talk with an investment advisor, banker, or other knowledgeable person. You do NOT need to use their services as some of them will charge commissions which you should not pay. But you can get ideas and suggestions and make your own decision.

Answer 6

First max out your IRA and 401k. Then put the rest in a taxable account. You should put your money in index funds. Put 70% in the ETF SPY, which follows the S&P 500. 12% avg. return is better than most mutual funds and the fee is very minimal. Put the other 30% into a few international indexes.

Answer 7

Pay off any debt you have. Especially credit card debt. Contribute to an IRA. And put the rest in stock and bond mutual funds.

Answer 8

It's not a lot of $, but the best investment is real estate, specially now that the prices are down. CDs are the easiest way to get about 5% in 6-9 months.

Answer 9

Mutual funds.... but keep in mind the market is looking a little scary right now... and if a democrat gets in office and wants to raise taxes, the market could take even more of a hit.

If it were me...

I would wait a few months, and just put the money in a CD for 6 months, or a good money market account.

Then put it in mutual funds... if you want to be aggressive, then 33% international value/emerging markets.
33% large cap funds
10% in something like NY Davis Venture
10% bonds
14% in whatever...

Answer 10

Vanguard is ideal for long term investors who want to learn about mutual funds, index funds, and exchange-traded-funds (ETFs). Trading funds is less risky than trying to trade "individual" stocks.

Unless you plan on spending everyday of your life looking at stock charts trying to determine the best time to get in and out of "individual" stocks, I would look into some sort of fund.