Investment 101 Question..

[maasikus]

What is the best way to invest some $$$ , which is safe but also yeilds a good interest rate? Having it in a savings account is probably not the best due to very low interest rates...what do you guys think? My friend asked me for advice and I thought I would see what the popular answer is...

[skyjuice]

Hi

 

How about fixed deposit, money market fund and bond fund?

[annie24]

depends on what your goals are, how much money you have, how old you are, and how much risk you are willing to take.

 

one possibility is to put it in a CD (certificate of deposit). For example, you don't need the money now, but you will need it 2 years from now. Bascially, you get paid a higher interest rate, but can't take your money out before the CD expires without paying a penalty.

 

You can invest in a mutual fund, those can be good, as you are investing your money over hundreds of corporations. Or, you can buy stocks, but that is potentially risky. So, it depends on how much money you have and how much you are willing to risk.

 

What are your goals? are you saving up for a trip or a wedding or something? or is this money you want to save for a longer time to come? You can also set up a retirement account, I am very much in favor of those.

[Boughs]

How does one go about putting money in a mutual fund, or a CD...

[zerohalo]

I just went to my bank and asked to talk to a financial advisor. He helped me set up a mutual fund.

[annie24]

I would go talk to your bank about setting up a CD. As for a mutual fund, you should talk to the financial advisor, but also do a lot of research on your own. Find out about the mutual funds they recommend. I picked some mutual funds in my own field and I knew those companies were real up and commers so I did well by investing in those funds. Read some books by Suze Orman. She has some really great financial advice. The first rule is that no one will look after your money like YOU. make sure to be informed, and make informed decisions. her theory is that you are your best advisor, because you are sure that you are looking out for your best interests.

 

when hiring a financial advisor, ask around. find people who are doing well financially, and ask them who is their advisor. don't use someone who makes a commission on every trade. (ie, they will be shuffling around your money all day, and you will not make a dime!) My financial advisor makes a percentage of whatever I have in his accounts. ie, if he does really well and makes me a lot of money, he will make money too. if he does poorly and makes bad investments for me, he won't make money. so it is in his best interest to do well!

 

well, anyways, I recommend reading a few books by Suze Orman before handing over your money to anyone. If you invest wisely, it will grow!

[quietgrl]

I just went to my bank and asked to talk to a financial advisor. He helped me set up a mutual fund.

 

What a good idea.

[now_better]

link removed has a list of 3-6-12 month yields for CDs and show minimum investment amounts ($500, $1k, etc). i opened up a couple GMAC 6-month CDs as it's a large, safe company, easy to use webpage and good percentage. i also use link removed for my IRA and money market fund (easy, safe 5% return).

 

in order to use these online sites, you need a sizeable amount of money. if you have less than