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WHich is the best and safest way to invest my $$ and get the most interest out of it? EX: CD, mutual fund.?


I have some $$ in a CD right now, but Im really not satisfied with the interest I earn on it. Any suggestions on what else can i do to make more or earn more interest?

Best AND Safest do not always go together.

The reason that you get a better return from the stock market than from a bank is that you are paid a premium for the amount of risk you are willing to carry.

One of the BEST investment strategies I have come across is the stocksmonthly system. It does carry a degree of risk, but you are rewarded with some outstanding returns. One of the great benefits of such a system is that you are always totally in control of your funds.

CD. Mutual funds are just a spread of stocks but at any time they could LOSE VALUE. If you can handle the loss put some in mutual funds but the smart money would keep it in CD's.

Sure, return correlates to risk, so if you are unsatisfied with low returns you must increase your risk.

However, "safe" doesn't necessarily mean that you can't have any risk. Government bonds are considered no risk. You can also put money into corporate bonds which have extremely low probablility of default--when you don't receive all your money back.

In all reality, you should match your investments to the time legnth that you won't need your money. If it is for more than 5-7 years, you should put money in the stock market. Over time, the stock market is less risky. Risk is just the variation in return, not the probability that your investment is lost (there is no chance that the stock market will "crash" to no worth). Use an index fund to diversify across many stocks. I like vangaurd.com because they have very low fees and they follow the target indexes (S&P 500, ect).

Good luck!

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