Posted on January 26, 2010.
How do I invest my money? I have 10k sitting in a money market account interest taken a little less than 2%. I'm 23 years old and I currently make a regular income. I want to return to school or maybe buy a house to have quick access to my funds is important. I thought about 8k to invest in a mutual fund. But I do not know much about the investment. I thought maybe make a firm like Edward Jones managing my money, but I read the charges are very high. I have average risk tolerance than average ... Please let me know what the funds or the management of funds are the best. Or if there are other options. Thank you!
merely 2% gain in safety is best for your situation.
I had similar question some time ago. Some points you can use while investing.
I suppose you are looking for long term investments and loans to take risks.
1) diversification of your investments. A mixture can give good returns over the long term.
2) You can not time the market when investing the same amount over a period of time to make the average benefits.
3) I think every investment class has its own risk stocks bonds, mutual funds etc., but you can look at
http://money.cnn.com/magazines/moneymag/bestfunds/2010/index.html for investment funds. Try to choose a fund that has lower costs., Try funds target date.
4) Do not forget the tax implications of your investments.
Dump your money in a CD where you can collect a certain amount of interest. Although money is in the collection of interest, cd ( http://www.igobanking.com , has some decent CD rates) take some time to your day or even your week and talk to people and make research investment. In doing so, you'll have a much better control of your money, do not have to deal with financial firms that are paid if you succeed or fail and you learn to manage your risk. Believe me, you better do your homework. There are many financial advisors who do not know what they are talking. Good luck!
I suggest you leave your money in the bank where it is safe to continue to dump all you can on the money market account until you have enough of a deposit on a house.
There is not enough info here to give a good answer, but I'll try.
First, you have debts? You must pay all non-mortgage debts (credit cards, car loans, etc.) before thinking about investing.
Do you have an emergency cash fund? Everyone should have at least 3-6 months of living expenses saved in a cash account (money market, CD, etc..) These accounts do not pay much at all right now, but the important thing is have access to that money, no growth. It seems that this is where you should keep your $ 10K. Maybe put $ 5K - $ 7,500 in a CD. CD rates vary depending on the length (usually 6 months to 5 years), but they should pay a little better than the money market.
If you have no debt and an emergency fund, you might think, is a mutual bond funds or balanced funds (which includes shares and bonds). You do not want to be too aggressive (for example, all equity funds), because it sounds like you need the money for a house down payment in a few years. Equity funds are the most used over the years in the long term (5-10 or more) investment, as retirement savings.
If you go with mutual funds, be sure to choose a company that has a good selection of funds, low cost (not Edward Jones), and excellent customer service. My favorites are Vanguard, T. Rowe Price and Fidelity.
I hope this helps. Good luck!
