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I have 20 thousand dollars, how do you think i should invest and why? no need to define things, I know what stocks, bonds, mutual funds, IRA, real estates are... but I just want to know what do you think is better and why? don't forget the why.
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I have no idea. We don't know what you're saving towards, don't know how good you are at picking individual investments, don't know your age, don't know your timeframe, don't know your risk tolerance, don't know how much debt you have, don't know your EF situation.Originally posted by materics22 View Post
Why are you investing? What do you plan on using the money for? -
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It would be helpful to know if you are saving for a goal, how long you want to put the money aside, etc., and if you need it to be liquid for immediate use as well as if you already have other investments, etc.
With Bernanke's announcement that some changes are coming, I'd say try to lock something in if you just want to invest in a short term although the interest rates aren't great because I'm afraid they are going to go down to zero. Maybe ladder CDs or something if you don't want to tie up your money for a huge amount of time.Comment
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If the money is for retirement, then use it to max out your retirement accounts. For example, if you do not already have a Roth IRA, immediately contribute 5k (6k if 50 or older). Choose a quality custodian, such as Vanguard, and choose a diversified fund appropriate for your age and need to take risk, such as a target retirement fund. It may take a few years to get the entire 20k into your retirement accounts. That's OK.Originally posted by materics22 View Post
If the money is to be used within 5 years, then park it in an online bank.Comment
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I agree with the last posters comment. I would also add that've you want to make your own target date fund based on different mutual funds Vanguard has some good value based index funds for the stock portion of your portfolio. Once you provide us some additional info then we can give more focused advice.Comment
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This. If you have a long-term investment horizon, plunk the 20k into an appropriate Vanguard Target Retirement fund and run with it. Vanguard's target retirement funds are unique in the sense that they're not worthless since the underlying funds are all index funds. If you choose someone other than Vanguard, I would say get a low-cost total stock index fund, a low-cost total bond index fund, and then apportion them depending on your risk appetite.Originally posted by Petunia 100 View PostComment
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If you are interested in trading your own money. Increasing your probabilities, you may want to check this site out. Some FREE stuff and archived pieces. Here is a link.
I am learning so much from these guys. Personally I think that Tom, Tony, LIZ and JNY along with Slim are teaching stuff that needs to be taught in our school system. I truly believe that more folks can make better decisions about their finances by learning about risk and the probabilities of making money. Hope this helps. IMHOComment
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