If you had $500 to invest for a rainy day where would you put it for the highest return?
2007-10-23 03:16:46 · 7 answers · asked by Big T 1 in Business & Finance ➔ Personal Finance
roulette wheel
2007-10-23 03:19:20 · answer #1 · answered by Willy 3 · 0⤊ 0⤋
If by "rainy day" you mean that you might need access to it immediately in case something happens, it means that there are two criteria: easy access and low risk.
Easy Access:
This rules out things like CDs which require the money be left in for a set period of time. Also, you do not want to put into an account that requires minimums, like some money market accounts.
Low Risk:
This rules out things like stocks and even some mutual funds, because anything that bases its return on market conditions could go down... even index funds lose money in the short term sometimes.
So with all this said, I'd go with an online savings account like HSBC or ING. The interest rates are a modest 4.5%, but there are no minimums, and you have easy access to the money if needed.
If you're pretty comfortable with risk and all you want is a potential high return, the stock market is the way to go. In the short term you could lose a lot, but if it's something you could potentially sit on for a while, stocks in general do better than any other investment vehicle.
If you want to diversify a little but still invest in a certain sector that you think will do well, look into ETFs (Exchange Traded Funds). They're hot right now.
2007-10-23 04:10:24 · answer #2 · answered by Nathan K 3 · 0⤊ 0⤋
You must put some on saving & some for investment.
An internet business is an easy way to create a passive income because:
1. Require small to zero capital
2. Get started right away and easily
3. Work from home or anywhere in the world as long as there is an internet connection
4. Has unlimited potential to earn money
5. No age or education requirements
6. Doesn't have to have a company
What you need to do is to learn about the internet business as much as possible to discover whether it is for you and what your strategy is. There is free information around.
Good luck.
2007-10-23 17:01:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
$500 is probably a "rainy day" fund, not an investment.
If you plan NOT to touch it for 5-7 years buy Vanguard S&P 500 Index fund.
If you might have a need for it from time to time, just use a good money market fund at your bank.
Bob
2007-10-23 03:21:34 · answer #4 · answered by Bob W 5 · 1⤊ 0⤋
Look for a sexy stock (AAPL!?) and buy a few shares.
2007-10-23 03:21:31 · answer #5 · answered by Aaron O 1 · 0⤊ 0⤋
401k retirement.
2007-10-23 03:19:09 · answer #6 · answered by Fuzzybutt 7 · 0⤊ 0⤋
mutual fund...
2007-10-23 03:23:50 · answer #7 · answered by becca9892003 6 · 0⤊ 0⤋