Would my best bet be to put this into a savings account, CD ect? I have to admit I'm quite oblivious to anything financial so descriptions would help.(sorry)
2007-09-06 17:05:12 · 7 answers · asked by connected95 1 in Business & Finance ➔ Personal Finance
Depends on your comfort level. If you want high returns, but aren't willing to take much risk, perhaps going for bonds, mutual funds would be sufficient. Otherwise, go for stocks (do some study first), or you may wish to go for high risk products such as hedge funds (assuming they let you buy).
Saving accounts are the lowest risk products, but offer the lowest returns. This is followed by fixed deposits, bonds, mutual funds, then stocks. Hedge funds and other modern products would like somewhere between mutual funds and stocks, or beyond stocks. Speak with a financial adviser - but your most probable bet is to continue saving while investing that $1k of yours. Its precious as it is to begin with.
2007-09-07 04:37:29 · answer #1 · answered by Wai Meng Y 3 · 0⤊ 0⤋
With the equities market (stocks) receiving a battering over the last couple of months, prices for individual shares are at a relative bargain. Thus I would be tempted to advice you to put you money on stocks. However, you should likewise be aware of the risks involved. THERE ARE NO GUARANTEED RETURNS insofar as common stocks are concerned. Concededly, however, it offers the highest POTENTIAL return over a RELATIVE SHORT PERIOD OF TIME. On the other hand, yes, you can choose to place it in fixed income instruments (CDs being one of them) which guarantees you a decent return over specified timeframes. So, i think the best first step for you to take is to define your risk profile. If you are young and have a stable job, you may strongly consider the raw "excitement" of stocks over "dull" debt instruments. Once you've decided how much risk you can tolerate, the next steps should be quite easy. You simply have to balance it out with the prospective returns offered.
2007-09-13 23:23:41 · answer #2 · answered by compradore 2 · 0⤊ 0⤋
If you don't need the money Open a IRA or Roth account for your retirement with a stock broker, select a mutual funds that have good returns . Add to it monthly and you will have a nice retirement income. For short term investment buy a CD that pays 4-5% APR.
2007-09-07 00:57:35 · answer #3 · answered by Goodhead 3 · 0⤊ 1⤋
Do you have a specific goal or time frame that you need this money for? My first suggestion if this is money for an emergency is to put into an online bank, which would pay you a higher yield that a lot of banks. Consider INGdirect at 4.5% or HSBC Direct at 5.05%. (I don't work for either, but I do invest my emergency funds there).
Good luck
2007-09-07 01:18:53 · answer #4 · answered by RHJ10 2 · 0⤊ 0⤋
It would be nice to know your age, but I am guessing you are young, so I would suggest that you open a CD at your local bank, as it is safe and you should earn about five percent.
2007-09-14 18:55:30 · answer #5 · answered by H. A 4 · 0⤊ 0⤋
these days $1,000 is not a lot of money. I suggest you put it into your Roth IRA for your retirement. And the following year place in there another $1,000.
2007-09-14 01:02:56 · answer #6 · answered by sophieb 7 · 0⤊ 0⤋
Invest your money....
It will take time and money and smart buys.....
2007-09-07 00:13:57 · answer #7 · answered by Anonymous · 0⤊ 1⤋