I have money to invest, not too much (, 000 +) but more than I ever thought I would have. What is the best investment?
I was thinking savings bonds, mutual funds, CDs or just interest. which is best and where? Chase, Citibank, Bank of America, ING DIRECT orange savings, credit unions or what?
I have some friends who are rich and they say its a bad time to invest in the market ("hide it all under the mattress") but they’re also stockpiling non- perishables and ammunition.
Any thoughts?
Thanks,
PS I’m in California.
Johnny Wadd 3:14 pm on August 28, 2010
a diversified portfolio is the best investment. it is best not to put all of your eggs in one basket. find a financial advisor who you like and go from there.
disclaimer, this post is for information purposes only, no specific advice is provided or implied.
C Brown 3:14 pm on August 28, 2010
It depends on the length of time that you intend to invest. With a bank CD you will receive a definite interest rate and your deposits will be guaranteed by the US government’s FDIC program. As a result of this safety, bank CDs do not tend to give large returns. Especially now as the government has taken extreme action to keep interest rates low.
Just because a CD is guaranteed does not mean that it is without risk however. Inflation is an invisible factor which can murder your returns on bank CDs. Since CDs are currently paying low interest rates, if inflation were to rise, you could be locked in for a long time earning small amounts of interest while the value of your dollars is actually shrinking. To explain this, if the price of everything doubles over the next 10 years due to inflation, and your savings account increases by 50%, you will actually be less wealthy after investing due to this invisible force, though your account value will be higher.
One way to protect yourself against this problem is to own a business. (invest in stocks or mutual funds). As prices rise, businesses make more money. This drives up stock dividends, returns, and stock prices. However in the short run, stock prices will fluctuate wildly as day-traders battle it out in an effort to siphon money away from other players in their game. You will see this as your account value fluctuates.
If you believe you will need the money in the next couple of years or so, do not invest in the stock market as you will not have enough time to benefit from the growth in value of your businesses. If you can wait 10 years or longer however, stocks can be very profitable.
The best time to invest in stocks in when most stocks are currently selling at low prices. This is because as the price you pay for a business drops, the rate of return you receive for owning that business increases. So the best time to buy stocks is when the rate of return offered by them exceeds the rate of return available from other investments (such as bank CDs). This appears to be the case today as bank rates are terribly low, and stock prices have also recently taken a hit.
Long story short, if you will need to touch the money soon – stay in the bank. If you are investing for long term growth, consider mutual funds.
Successful Trading 3:14 pm on August 28, 2010
best investment in forex, stocks, Gold and silver companies are listed below.
you can even get a phone call from them
What is the best investment? savings bonds, mutual funds, CDs? >> Savings Bonds EE 3:42 pm on August 28, 2010
[...] 28, 2010 3:14 p.m. Savings bonds value – Google Blog Search by [...]
People are reading:
best investments bonds cds, best investment bonds or cd, best investm ents stoc bond or cd, what is the better investment CD IR or savings bond, what is the better investment for young men, what saving bonds will give me a fast return, what the best investment? a house bond or savings, what the best saving bond to but right now, whats a better investment for a child savings bonds or mutual funds, whats better a savings bond or a CD, what is the best type of savings bond to get, what is the best investment stocks bonds or cd, what is better bond or cds, what is best investing in cd or bonds, what is best cd or savings bond, what is a better investment house or savings?, what are bonds and cds earning now, top investment CDs, investing in a cd or bond, bestinvestmentcdorsavingbonds, which one is best cd or saving bond