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How to invest my money? |
I will be coming into some money soon(30-75k) and I would like to invest some of it. Does anyone have any advice for me? Stocks ect.... That all depends upon your current financial situation. If you are heavily in debt, by all means pay off the debt first, then invest what you have left over, if anything. If you have little or no debt, well good for you! Then it depends on what kind of return you are expecting and your level of risk. Bonds and online savings accounts pay around 4-5% and are low risk, low return investments. Where as the stock market, greater risk and greater reward. If you are not familiar with the market, then turn your investments over to a professional that you can trust, or put it into mutual funds. If you are familiar with the market, then put your money into 5-10 different stocks in different sectors. Which ever you choose, just be sure and diversify. Start by putting some aside as an emergency fund just in case you loose your job or get injured.(3-6 months worth of expenses) then you should look into starting a retirement account if you don't have one already if you are young a ROTH IRA might be best. You can open a brokerage account to invest in stocks or mutual funds. Check out Fidelity.com. certainly some mutual funds. THE ABSOLUTE VERY BEST INVESTMENT: Yourself! Go to vanguard.com and read the investor education section of their website. Initially, park the money in the Vanguard Prime Money Market fund. As you learn about other types of funds (stock and bond) and the potential risks and rewards, start moving money into those other types of funds. |
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