What's the best way to invest $1000-$5000 for either short or long term and with compund interest?

Question

I know savings accounts and CDs hardly give any return and I have no clue how to deal with stocks, bonds, or mutual funds.

So, where would you invest money?

Thanks! :)

Answer 1

short term: there are many money market funds that are paying upwards of 5.5%. you'll also have access to yoru cash (often with minimum withdrawls of $250-$500). this is not tax-deffered of course.

long-term: if you are young, you should invest in a mix of stock and bonds through a Roth IRA. although you pay tax on the money beofre you invest, it will grow tax free until retirement. no tax paid when you withdrawl. also, in an emergency, you have the capability to withdraw any principal investmnent (i.e. the initial $5k). i would reccomend you open an account with a financial advisor with low costs like Edward Jones.

Answer 2

Hi friens always mutual fund is the best to investment..Just take look at the link below to learn more about investment

Answer 3

If you want interest, use a money market fund, available at any broker.

Answer 4

ETFs.