question on investing

B

bmoore15

100+ Posts
so i have an extra $1000 dollars saved up and was thinking about investing it. does anyone have any idea on what the best way to do that would be?
 
Thats like asking "I want to buy a car, which one should I get?"

Short term investment, long term, are you interested in mutual funds, stocks, do you plan on moving them around a lot or just invest and leave them alone, etc etc?
 
I'd recommend an index-linked CD. At least that way you can have equity/commodity exposure but your principal is FDIC insured (i.e. you cannot lose your investment if you hold it to maturity)
 
SA, can you explain that one a bit more? Is it just the original principal that is insured, or does any growth get insured as well?
 
say i already have a decent amount of money invested in mutual funds, stocks, and a roth ira. what would the HF collective do with about 10-15k in cash?

the next big purchase will be a house in 6mo to a year. car is paid off.
 
Figure that you will need at least 10% down if you do an 80-10-10 or 20% down if you do an 80-20 loan for your house and to avoid PMI.

If you are 6 months out, I would just put that money in the highest interest bearing savings account you can find. Of course rates are so low now it won't be much.
 
Is the gain pretty much proportional to the index gain, regardless of term? If so, it seems almost too good to be true.

The banks have to make money somehow, so they're either charging a fee or pocketing some of the gains, right?
 
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