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I have $2500 how best can i invest it and get a Good ROI (RETURN ON INVESTMENT)? |
I have $2500 how best can i invest it and get a Good ROI (RETURN ON INVESTMENT)? Higher risk means higher reward, but also a higher chance of failing. There's no risk with bank CD's, but also a low interest rate. As risk rises, so does the ROI. Try a ROTH IRA. The best way of getting a good return on investment, is investing in an investment vehicle that you know very well. don't invest in savings. Savings can never bring good ROIs because the rate of inflation always eats away the interest offered in savings accounts. In my opinion, examples of savings are mone market accounts, CDs/term deposit accounts and mutual funds. Find something that will bring you greater percentage of Return of Investment higher than inflation rate. You may want to reconsider savings accounts, Money Market Funds, or Certificates of Deposit (CD's) afterall, because, contrary to what another poster said, you ARE beating inflation.... Inflation is only running at about 2 to 3 percent annually, so, with a one year CD paying over 5 percent annually (actually, some banks are paying nearly 5.5 percent for a one-year CD), you are not doing too bad. That would entirely depend on your risk tolerance. For a completely safe vehicle, try eloan.com's online savings account. Your money isn't locked like a cd would be and you get decent rates. Open a brokerage account at TD Ameritrade and invest in DIA. With that amount of money and for the long term, I would say just get an index fund with a low management expense ratio (<1%). I understand 'Vanguard' is a good fund for Americans. Hi, |
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