Localfund.com - All about Fund and Investment
*Home>>>Invest Money

I would like to invest my money, i am just lost!?


What are some ways to invest a little moeny at a time and reap the rewards 2-5 years from now. I am talking like a few thousand dollars.

First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.

Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.

Third, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. If you wanted guaranteed rewards in 2-5 years, you may not want to be to aggressive.

Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will make you a lot of money in the long run.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Real estate mortgage loans are pretty risk free because if they don't pay you get a new house. You can also buy tax liens from the government. Real estate is the way because it isn't going anywhere.

Stocks, if you can find a good one.

I like Joe's answer. However I'd like to add one additional point;
A 2 - 5 year "time horizon" is not long enough for most "investments" and especially stocks.

Try dollar cost averaging into a good savings account until you understand investing better & your time horizon is longer.

If you want higher return withoug involving yourself much in the transactions, mutual funds are the best investment. If you want to play total safe, go for Fixed Deposit with any of the reliable bank or Government Bond. If you want to take risk for higher return, enter equity market, study for some time and select value pick stock and invest.

Tags
  Investment Calculator   Investment Bank   Investment Advice   Investment Account   Invest Money   Invest in Gold   Invest Fund   Income Fund
Related information
  • Where should young people invest thier money?

    The stock market is a good investment for young people because it beats most other investments in the long run. The return can sometimes be as good as 20% with an average of 8-10%. The drawback...

  • I am wanting to invest some money in order to create additional income short-term, any suggestions?

    Way to go Ramsey fan! Your plan is great! First, check out Dave's Investment ELP in your area. S/He should direct you like Dave himself! Shop around for a really good money market or CD. Sh...

  • How do i get people to invest their money into a project i have in my head when i have absolutely no money?

    You use the OPM method - or "Other People's Money" I suggest you read the book "Rich Dad's Advisors庐: OPM (Other People's Money): How to Attract Other People's...

  • What is the best way to save money and invest some money?

    put a regular amount each month into a bank or mutual fund money market account, and once you've saved up enough you can start to diversity into riskier but potentially more lucrative stock an...

  • In what ways can we invest our money and what are some of the better strategies?

    learn the stock market or invest in real estate or even a 401k

    ...
  • Which is better is to invest my money in a bank or to build a villa for myself?

    Building a Villa typically entails more risk but almost always has a much higher return, but: 1) You need to see how overheated your Real estate market is 2) Do you want to sell or live in it? ...

  • I am 18, how should I invest my money?

    smartly the DODFX that some one recommended requires a $2500 minimum initial investment. (too expensive for me for a starter but it is a good one) . I like ETF's myself VEU or CWI blows almost...

  • Is there a site that i can invest fake money that way i can learn and take chances without using real money?

    If you want to invest fake money and track it against real market data, your best bet is www.clearstation.com. If you setup a profile, you can make fake trades and it will show you how your inv...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster