What is a good way to invest $5000 that I have saved?

Question

I saved $10,000 before and then spent it all coz it was in my savings acct. CDs don't seem to yield good returns. What is a goo way to invest and store away saved money?

Answer 1

$5000 is not enough to invest in the stock market. You won't be able to buy quality stocks and diversify with that amount. Generally, you need twice that amount, and the basic knowledge. Mutual funds in a bad economy will also result in losses, unless you're lucky or know how to pick them.

So my recommendation is a Bank CD. Go to bankrate.com and look up the best 6 month or 1 year cd rates. The best way to get disciplined about investment money is to have money you can't touch.

Also while the stock market CAN get you better earnings, it can get you painful losses if you don't know what you are doing. So while that money is sitting in a CD, get a book or two from the bookstore and read it, find out how to pick stocks, and when your CD matures, you will have all the necessary components for good investing. Good luck!

Answer 2

If you are likely to spend that which is not behind lock and key, then a mutual fund or a CD are your best options. Try a mutual fund wrapped up in a Roth IRA. With the IRA and CD's, you have to pay a stiff penalty to access it/ spend it. A CD will yield higher returns than a new investor (and many seasoned investors). Look to many banks in search of the highest rate. Some pay almost 6%.

For mutual funds, I recommend an indexed growth fund. Steer clear of managed funds, too much speculation there by people without your best interest guiding their decision making.
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Answer 3

Depending on how long you'd like to save the money, the DJIA fund (dow jones industrial average) is a great place to put your money. It's averaged a 11.71% return since 1983. if you plan on having it in there for 10 years or so, you can weather the financial storms as all markets go through 11 year cycles. Get in now and take advantage of the next stock market surge.

Answer 4

A good low cost mutual fund historically will yield better than a CD.

Check out Vanguard.com

If you meet the income requirements, look into a Roth IRA.

Depending on your age, you can put $4000 of the money in a Roth this year.

Answer 5

How 'bout the Pilgrim's mileage and benevolent fund? Really, you can get 5.5 on a solid CD right now and that's the safest, best way to go for now. Keep that as a nest egg, and when you get another little lump sum, you can investigate some good mutual funds. Start with Motleyfool.com. good luck, peace

Answer 6

You admit you're bad at saving, so you're probably bad at paying attention to investing, in which case CD would be for you.

It pays little (literally no better than nothing), but you don't have that privilege to play risky investments as you're not responsible in saving.

So just save it, somewhere, such as CD. I bought silver, it pays way more than CD's 5% (in fact, 17% since mid August).

Answer 7

Real estate is a sure bet Buy ahouse and rent it Do not invest inthe market unless you want to loose all your money

Answer 8

growth stock mutual funds. but they are long term... 5 years at least... meaning don't move or touch the money.

but never invest in anything until you fully understand it, or you will lose money.

never buy individual stocks... that is too risky and you will lose money there too

Answer 9

apparently, you don't know about the stock market so I wouldn't recommed you to invest in it,for now why don't you try mutual funds.

Answer 10

I would diversify. Bonds. Try the stock market only if you know what you are doing!