How should I invest my money?
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Answer:
You really need to educate yourself some. Get "Investing for Dummies" at the bookstore or your library. That will give you a basic background and answer many of your questions better than we can.
Basically a money market account invests in short term corporate debt instruments. It currently does not pay a very high return, maybe 3 to 4%. A CD pays about 5% and is insured by the U S government. Money market account is not insured.
Over the long term an investment in stocks, through a mutual fund or better yet several mutual funds is very likely to return about 10% annually or perhaps even more. Over the short term, it might actually loose some money. There are many good mutual funds but also many that are not so good. If you want to start out with just a very small investment American Funds is very good. $250 minimum investment. They have many different funds to choose from. If you want to invest at least $2000 in a mutual fund there are many no load funds to choose from. Royce Funds is one of my favorites. They are both on the internet. You can go to their sites and learn about them.
Mutual Funds work the best. Contact Vanguard and set up an account. If you are a aggressive investor, that means you want to see returns right away. If you are a moderate investor, that means returns will come, but by a slower rate.
Stock market has higher returns on your investment but there is risk, you have to have experience in order to play the markets. Why don't you take some classes in investing at your local community schools, which are really inexpensive. Also, read this book, "Understanding Wall Street".
Mutual funds could be good for you, you will let a professional broker invest your money for you. You will have to open an account with a brokerage firm or maybe your bank can do this for you. CD's are very safe, but returns are little, as interest rates are low.
teach your self so you do know about the stock market and what ever you are interested in. INVEST YOUR MONEY ON BOOKS that teach you how to be financially literate. theirs plenty of them. watch financial TV shows listen to financial radio,but what ever you do invest to win do not invest not to loose. Be aggressive and don't go with something that is "safe" because it is safe a safe way for u to save your money letting inflation decrease the value of it C.D.'s are not aggressive u almost loose money when u can be gain at least 4 times that. don't hand your money to someone Else to do it for you or take advice form someone u dont even know on a website. make yourself financially literate that's THE BEST INVESTMENT!
You are guaranteed to lose purchasing power in cds after taxes & inflation. False safety. 5% cd - 25%tax = 3.75% vs 4% inflation - you have more money but worth less. Numbers change but result does not. No need for professional management help but don't ruin your future by hiding in a bank. Investing does not mean speculating. ADX PEO EAF SNH a solid core of holdings you can buy at schwab.com or any other broker. Don't let fear & poor advice drag you down.
I suggest 100% in the Stock Market with the help of a Financial Advisor.
Please do some research and figure out what is best for you. A financial plan needs to be tailored to the person. Depends on your risk tolerance, goals, age. You should be diversified to minimize your risk. Head to the book store. If it's too overwhelming take a class through your community or consult a CERTIFIED advisor.
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