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| *Ostroff, Fair and Company>>>Investing |
I just inhereted $50,000 what is the best way to invest my money? |
I just inhereted $50,000 what is the best way to invest my money? Put it in a CD! Don't invest in any companies. Real Estate fluctuates too much these days. And everyone within 6 Degrees will ask for a loan. Don't loan it out. Good luck Hon. Put it in a 6 month CD and then do a little research. When the six months is up you should have an idea what you want to do with it. There are investments and there are "investments"... Rule one, don't be greedy. forget hi-fliers with high rates of interests. Look to solid investments . Banks and financial institutions... but always remember Highest interest is not always the best in the long run. REAL ESTATE real estate or better yet give it to me If you intend a long term investment, then long term newly issued utility bonds. Newly issued so there is no brokers fee taking part of the money. Long term so they pay regularly and you know when due. Utility bonds because they are reliable (usually) Several different issues. The disadvantage of bonds is that if you need to get out of them, the money you get in the market goes DOWN as the interest RATE goes UP from the starting point. As an extreme example (maybe) if you got 8% interest on $10,000 now (paying $800 a year for all the time you held them), you would get all your money back at the end of the term, but if interest rates went up to 16%, you would only get $5,000 from them, because the buyers want to earn 16% on their investment which $800 would be on $5,000. [Of course, if interest rates went down to 4%, you could sell for $20,000] ING Direct or HSBC interest bearing accounts give ~5%. The account is linked to your checking account so you can transfer money to your account if needed at any time, unlike CD's. |
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