How should I reinvest the money?
2007-09-14 03:33:00 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
CD rates are still good.
If you like the security that the CD provides, reinvest it into another CD.
If you are ok with more risk, and you can leave the money there for a long time, look into investing it in a good mutual fund.
Historically, mutual funds will pay a better rate of return than CD's, but with higher risk.
2007-09-14 03:40:46 · answer #1 · answered by mister_galager 5 · 1⤊ 0⤋
5% is a good rate but you can get that without tying it up in a cd. for instance paypal pays that rate, and orange and other online bank. if you have any debt you should pay that off first because no use saving money when you have debt that is costing you more.
if you want other advice, there are some nice closed end funds that pay about 6-8%. a closed end fund is a mutual fund that pays you a dividend monthly and be sure and reinvest the dividend each month and usuing that method you get more since you are paid on you old shares as well as your new shares each month. the bonds can go down in price but they are meant to stay pretty stagnant and the dividends make up for those. depending on where you live some are also free of local or fed tax which really makes them even more valuable.
2007-09-14 04:03:09 · answer #2 · answered by Domino 4 · 0⤊ 0⤋
definitely reinvest, just a matter of where. if you don't know better, 5.10 for a CD is not bad, go for it.
If you can afford to take some risk, I'd go into silver, for $3K, you can buy a good deal of silver coins and resell within 3 months (definitely less than 6 months) and cash out for 5-10% realistically. If so, this is minimum 10-20% a year (statistics show silver has paid more than 30% every year since 2004)
If you have questions, feel free to ask, if you're half convinced, invest half :)
I know this from experience but it's only for people who can afford to spend time doing homework and know the odds of risk. Compared to stocks, this is much less risk with relatively acceptable payback.
2007-09-14 14:02:53 · answer #3 · answered by Smartass 4 · 0⤊ 0⤋
What are your plans for the money? CD's are good for savings not investments. If you plan to use the money in a a few years then put it in another CD. If you want it to grow faster than inflation and taxes then invest in a good mutual fund. Funds have risk of loss but have a much better chance of gaining more over time than CD's.
I suggest Vanguard Star Fund. It invests in other Vanguard Funds - some bond funds, large, small and international stocks. Good spreading of risk. Minimum investment of only 1000.
2007-09-17 13:50:40 · answer #4 · answered by J 4 · 0⤊ 0⤋
First, when will you need the money? If it within the next 7 years stay in a CD. If not a mutual fund such as Vanguard's Global Equity (VHGEX) would be a good place to invest.
2007-09-14 04:26:36 · answer #5 · answered by HH@20 2 · 0⤊ 0⤋
Buy another CD if the rate is somewhat the same. It is the safest investment you can make.
2007-09-14 03:40:55 · answer #6 · answered by regerugged 7 · 0⤊ 0⤋
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2007-09-14 03:42:53 · answer #7 · answered by Alvin 2 · 0⤊ 0⤋