Investment?

Question

I'm an 18 year old female who received $10,000 due to a death of a relative.

What would be some good ways to invest this?

I don't really wanna keep it tied up in anything for longer than two years, because my own family's financial situation is uncertain.

What should I do with it?

Any suggestions appreciated.

Answer 1

Consider the Vanguard Prime Money Market Fund with a current compound yield of ~5.01% APR.
https://flagship.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0030&FundIntExt=INT
If you are in a high tax bracket you may prefer their tax exempt money market funds:
https://flagship.vanguard.com/VGApp/hnw/FundsByType
Sometimes other institutions will have a higher teaser rate, but Vanguard tends to have the highest yields I've found over the long run. (Vanguard money markets are not FDIC insured, however.)

Article on teaser rates:
http://www.marketwatch.com/news/story/banks-advertised-rates-dont-always/story.aspx?guid=%7B0A13B6E2-FFB2-4E2B-BD42-E2D1E01C52E5%7D

ING and HSBC often have rates close to Vanguard, and most of their products are FDIC insured. Bankrate.com provides links to CD's with high interest rates. You can check these at the following links:
http://home.ingdirect.com/
http://www.us.hsbc.com/1/2/3/personal/savings?code=husa
http://www.bankrate.com/

(If you are investing for a long period of time,greater than 5-10 years, and are willing to accept some volatility, you should consider putting some money into no-load low-expense mutual funds. These are not guaranteed, but over the long run produce much higher returns.)

Answer 2

It depends on your investing plan for the future. If you plan on making this your only investment for your lifetime, and you only have two years before you need the money, you could go purchase Certificates of Deposit. If you are going to need the money periodically rather than all at once, tell the person that is helping you buy the CDs that you would like to ladder them. Another option would be a savings account with an online bank such as Emmigrant Direct. Both of these options should yield just over 5% return with the same tax implications. Your money would also be FDIC insured.
On the other hand, if you want to become an investor, and would like to make money on your investments in the future, invest in your investment education. Learn how to invest. Unfortunately the answers are not in "Answers." Read books. I would suggest Robert Allen's "How to Create Multiple Streams of Income" and Kiyosaki's "Who Took My Money" which is a book that was written to answer the question "I have $10K what should I invest in?" Take classes. Go to seminars (but don't buy the "mentoring").
Finally please do not buy an investment from some "advisor" with a nice car and a red tie who is telling you that his investment is the way to go. Telling comissioned sales people that you have $10K to invest makes you a prime candidate to make their next car payment. Investing with them will most likely get you somewhere between -100% and 0% return on your investment.
One last thing, if you decide to pay huge comissions on an actively managed account or a Variable Universal Life product, look me up. I'd be happy to take your money.

Answer 3

A quality mutual fund from vanguard.com will probably earn you a decent return over the next two years. You could earn about 8%-15% return a year with a quality fund.

If you want to have quick access to your money, then simply put it into a high yield online savings account. These will earn you about 4.20%-5% a year. These savings accounts are FDIC and basically risk free.

So it just depends how much risk you want to take.

Answer 4

You should contact a Financial Advisor, I use Jill Daniels with T&D Investment Group and she is great. She specializes in Real Estate Investment, her email address is [e-mail]

Answer 5

I would invest this sum of money into shares.

My reason for this is because at the moment shares are low, a great time to buy, but in say... 1-2 years the shares will have gone up, thus more money for you.

Answer 6

If you invest in the stock market, you could expect to make approx ~8% each year over the next two years. ($11,600)
Use a discount broker (eg. scott trade) and invest in what I like to call buy and forget stocks. (pepsi, coke, altria, clorox)

Reinvest the dividends.

Or put $5000 in a 6 month CD and $5000 in a 1yr CD.
At the end of 6 months reinvest in 1 yr CD.
This will tie up only half your money in 6 month intervals.
but at the end of two years you will only have a little over $10800.
The difference is that it will be guaranteed.

Answer 7

At a local bank, you could get a CD or money market account.

At a good mutual fund company, like T. Rowe Price, you could invest in a stock fund and a bond fund. That's the way I would go.

Answer 8

Hi dear,
u could save them in online saving with the better rate.
In case if u need the money for the urgent you could use ATM too. Try to log on in the online saving to find better rate. Good luck

Answer 9

invest in some good international mutual funds

Answer 10

check my profile. You can lend some money for decent interest rates. It is like ebay for loan websites.