Whats my best option for diversification or rate?
Question:
I have already invested 12k into my retirement and would like to move some money into some seperate ventures.
I'd like to do stock, however I think I want to invest in a CD or a money market account 1st, does anyone know what would be a quality rate or the best rate that you can receive? I have also thought about purchasing bonds and or loaning money to others through prosper.com ----- any suggestions will be greatly appreciated thank you
Bankrate.com is a good place to check rates. If your goal is to buy a house or a car what you're probably looking to do is accumulate some cash in order to make a down payment. With that being said the next thing you need to consider is how long you want to wait before making that down payment. When buying stock you need to consider tax implications (long-term vs. short-term). In my opinion if you want to save to make a down payment I would start putting money monthly into an online savings account that yields approximately 5% (ING Direct, HSBC, Capital One, etc) because the majority of them are FDIC insured so you have no risk (taxes will be assessed at your current marginal rate). You could invest in stocks but there is a lot of risk particularly if you're thinking you are saving for the short-term.
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