I have some money what to do with it?

Question

I dont want to spend it, instead I want to invest it in something to produce more money. any suggestions?

Answer 1

Standard investment advice is that you should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult time buying a properly balanced portfoilio of stocks on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced assortment of stocks. Unless you know what you are doing, it is best to buy mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard has an on-line questionnaire which will give you an idea of how to do "Asset Allocation," determining how much to put in each type of fund.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

Buying a house instead of renting will save you a lot of money in the long run. You don't have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don't know how to handle deadbeat renters, you can have trouble.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
http://www.diehards.org/readsites.htm
http://finance.yahoo.com/education/begin_investing
http://finance.yahoo.com/funds/basics

Asset Allocation Calculators
(Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)
https://personal.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education
https://ais2.tiaa-cref.org/cgi-bin/WebObjects.exe/DTAssetAlcEval
http://www.ifa.com/SurveyNET/index.aspx

Web forum: http://www.diehards.org/
(Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)


529 plans: http://www.savingforcollege.com

Answer 2

Your right to think about investing. you can play very safe with bonds and treasury stock,but ofcourse the safer you play,the less you could earn and return. You need to spread your investments. I would suggest you seek the advise of a really good international broker. You don't have to take their advice,but it may be worth hearing! It really comes down to how much you have to invest and what returns you are looking for. I would be happy to suggest one or two good brokers,that could offer you free advice and then I think you should look at the investments that they suggest and do some homework !

Answer 3

I can help you make more money if that's your goal.

Send me an email to
[e-mail]

I don't like leaving links, as I only deal with action takers. :-) so you'll have to request for more info and take action!

I'll give you access to an exclusive video where all will be revealed. :-)

By the way, I will not personally ask you for any money. I will show you how it is possible to triple your return within 90 days.

Best of Luck whatever you decide...
Amit

Answer 4

A Simple CD at a bank of your choice

See who has the best 90 day CD's

Answer 5

Put it into a money market account. Best to go to your bank, and talk to someone though. You would be amazed at how much it can grow!

Answer 6

put it in savings account with good interest if you dont want to take any risks.....or you can invest in shares and bonds with small risks

Answer 7

CD for the short term ... real estate is a great bargain right now

Answer 8

give it to me, i will hold it securly, spend it and in repsponce to that king gesture i will send you weekly e-mails telling you how me and my panda friends are doing.

Dont miss next weeks! Sumba the mother panda farted!

Answer 9

put it in a savings account that has good interest or get some stocks.

Answer 10

Money market.