I've 4k to kick around. Investment options?
- Thread starter Arkayne
- Start date
I believe the appropriate canned RM response is: "hookers and blow."
gold, oil
No clue, I'm useless for this type of advice.
No clue, I'm useless for this type of advice.
Mutual funds are a good place to invest. Not the highest yield out there, but they are one of your safest bets. They have better interest rates than savings accounts. You can adjust your mix to alter your interest rate depending on how much risk you want to take.
Roth IRA's are a good investment as well, I don't know much about them.
They are both good long-term investments.
Roth IRA's are a good investment as well, I don't know much about them.
They are both good long-term investments.
Use it to start a Roth IRA.
buy a classic car with a little rust on it, no holes in the body. then restore it and get your money back.
Use it to do the opposite of what this retard just typed.
Step 1: Build Time Machine
Step 2: Go back to 2003 when Euros were well under 1:1 to the dollar.
Step 3: Trade dollars for lots of Euros
Step 4: Come back to 2008
Step 5: Trade in Euros for lots of dollars where Euros are worth well above 1:1 to the dollar.
Step 6: Give money to me.
Step 2: Go back to 2003 when Euros were well under 1:1 to the dollar.
Step 3: Trade dollars for lots of Euros
Step 4: Come back to 2008
Step 5: Trade in Euros for lots of dollars where Euros are worth well above 1:1 to the dollar.
Step 6: Give money to me.
You took stupid pills again this morning didn't you?
** folding my hands politely in my lap **
(Honestly I think I was doing the world a service....)
and bacon...
Open a Scottrade (or other low cost broker) account and buy some individual stocks. Maybe learn a little about swing trading or trend following and try your hand at that... just make sure you use stop losses. It can be fun, financially rewarding, and not very risky if you do it right (setting smart stop losses).
so buy a pristine classic car, shoot it up with a 12 gauge shotgun, push it in the ocean, then try to resell it for more money???
Cars are a TERRIBLE investment, unless you're already loaded.
Loaded as in rich, not drunk. Or trying to drive a VW like its nascar
Stocks are much more time consuming than mutual funds or a Roth IRA. If you want a better return on it that is.
I would question the idea of getting started with stock trading in todays economy.
CD's are bringing good returns these days. It's short-term if you want it to be.
A roth IRA is just a type of aIRA account for individuals that make less than $65,000/yr. Once you put it in, you aren't spending it until the ripe old age of 65. This does however have it's perks, because it will be tax-free when you withdraw (unless congress gets greedy, again).
As for an investment, there is not a lot that is "safe" right now. The market it extremely volatile, and the bottom of the equity market is yet to be found. 6-8 months ago I moved most of my funds out of equities (except a few biotechs which are all or nothing on drug approval). I put a large amount into gold and oil, which has paid off well, until late last week. Still a large profit built in, but took a 10% whack on decreasing values.
The market is showing signs of a short-term run up, but the long term is still murky until the books of the financials are laid open and the full extent of the mortgage fallout is realized we will still be very volatile.
I placed most of my funds into a high yield savings account and have been generating a safe 4% annual return from my Wamu Account. In the same time, the market has been down 20%. I am putting all new funds into hy savings, as treasuries are highly over priced, and auction rate securities are too illiquid to get out of when the time comes (also need $25k min investment). At 4%, the Wamu Highyield savings account is returning higher than all but the 30yr treasury (at 4.39)
As for an investment, there is not a lot that is "safe" right now. The market it extremely volatile, and the bottom of the equity market is yet to be found. 6-8 months ago I moved most of my funds out of equities (except a few biotechs which are all or nothing on drug approval). I put a large amount into gold and oil, which has paid off well, until late last week. Still a large profit built in, but took a 10% whack on decreasing values.
The market is showing signs of a short-term run up, but the long term is still murky until the books of the financials are laid open and the full extent of the mortgage fallout is realized we will still be very volatile.
I placed most of my funds into a high yield savings account and have been generating a safe 4% annual return from my Wamu Account. In the same time, the market has been down 20%. I am putting all new funds into hy savings, as treasuries are highly over priced, and auction rate securities are too illiquid to get out of when the time comes (also need $25k min investment). At 4%, the Wamu Highyield savings account is returning higher than all but the 30yr treasury (at 4.39)
Do you need access to the money? If you don't, the IRA thing is your best deal. Everything is on sale now. It's a great time to buy.
Making a contrabution is easy and it makes you tax bill go down a lot. In fact, you can still do it for the 2007 tax year.
If you need the money in the next year or so, a CD is hard to beat for a reliable return. The problem with mutaul funds is that you need to be able to ride the bumps out. If your saving the money for emergencies, you may be forced to sell you funds when they are in a slump and get screwed.
Making a contrabution is easy and it makes you tax bill go down a lot. In fact, you can still do it for the 2007 tax year.
If you need the money in the next year or so, a CD is hard to beat for a reliable return. The problem with mutaul funds is that you need to be able to ride the bumps out. If your saving the money for emergencies, you may be forced to sell you funds when they are in a slump and get screwed.
Mutual Funds are fairly safe, are relatively low risk/work, but have fairly high management fees. Look into an ETF instead. They have many of the same benefits as a mutual fund without the high management fees. They are kind of like a happy medium between trading stocks and buying into mutual funds. Do a little bit of research or have someone who knows something about them pick a couple for you and they can be pretty safe investments.
The Joker
^^^ this guy knows his stuff.
You know the economy isn't doing well when commodities like gold and oil are taking major hits. I have an online only savings account with HSBC. When I opened it, my interest was 6.02%. VERY high for a savings account. Over the last 4 months, that interest has been declining. I got a letter of notification the other day that the interest had dipped to just below 4%
At this point I'm going to keep all my money in my bedroom at sleep with it. At least I won't get AIDS.
^^^ this guy knows his stuff.
You know the economy isn't doing well when commodities like gold and oil are taking major hits. I have an online only savings account with HSBC. When I opened it, my interest was 6.02%. VERY high for a savings account. Over the last 4 months, that interest has been declining. I got a letter of notification the other day that the interest had dipped to just below 4%
At this point I'm going to keep all my money in my bedroom at sleep with it. At least I won't get AIDS.
It's a great time to be in if you're not afraid to short stocks. Which can see quicker gains and be no more risky than buying if you use a stop loss.
Judging by how the economy is going, I'm investing in panic rooms, Smith & Wesson, and vallium.
Or if you can be in it for the long run.
CD's are great, just make sure you get a fixed rate and you get your funds out during the open window. If you do not, it re-cycles back into the CD for the same amount of time and you can't get out without getting hit with large fees (usually offseting the return). If the rate is within .5%, it might be worth just dropping it into a HY savings account.
BYO and JonKranked are spot on with the ETF and MF recommendaitons (more so ETF's), but you do still have market risk. You can still buy high and if you need the cash, be forced to sell low.
As to Cru's comment for shorting, it can be VERY lucrative, but the cost can be limitless. If you are short, your losses are only limited by how high the security can go. Your profits are limited to the security going to zero. You also have to take short term risk on single contracts and contract roll dates, dividends (you pay them to the actual owner when issued), and again, market exposure. When you are playing with $4k and it looks to be a good portion of your "free liquidity", I would avoid shorting. Shorts are for HIGHLY advanced traders (it's not investing, it's trading) and only on <1-2% of your overall portfolio.
**IF you decide you want to short, look into the S&P double short ETF's. This will allow you to short the market as a whole, while giving you the liquidity of a stock. With this, you have double exposure though. For every dollar the S&P goes down, you will make $2. The opposite holds true as well, for every dollar it goes up, you lose $2. Needless to say, it's an extremely risky proposition and you should only use funds that you can afford to lose entirely.
BYO and JonKranked are spot on with the ETF and MF recommendaitons (more so ETF's), but you do still have market risk. You can still buy high and if you need the cash, be forced to sell low.
As to Cru's comment for shorting, it can be VERY lucrative, but the cost can be limitless. If you are short, your losses are only limited by how high the security can go. Your profits are limited to the security going to zero. You also have to take short term risk on single contracts and contract roll dates, dividends (you pay them to the actual owner when issued), and again, market exposure. When you are playing with $4k and it looks to be a good portion of your "free liquidity", I would avoid shorting. Shorts are for HIGHLY advanced traders (it's not investing, it's trading) and only on <1-2% of your overall portfolio.
**IF you decide you want to short, look into the S&P double short ETF's. This will allow you to short the market as a whole, while giving you the liquidity of a stock. With this, you have double exposure though. For every dollar the S&P goes down, you will make $2. The opposite holds true as well, for every dollar it goes up, you lose $2. Needless to say, it's an extremely risky proposition and you should only use funds that you can afford to lose entirely.
Joker, what are you? some sort of financial analyst?
Arkayne, for the time frame you are looking to invest, CD's would be my recommendation hands down.
Arkayne, for the time frame you are looking to invest, CD's would be my recommendation hands down.
um... maybe.
I used to be a financial advisor, became a trader for a high level portfolio manager ($4 billion under active management - most mutual funds are under $10mmm for context), and now I sell financial software.
I'm pretty tied into the market.
I used to be a financial advisor, became a trader for a high level portfolio manager ($4 billion under active management - most mutual funds are under $10mmm for context), and now I sell financial software.
I'm pretty tied into the market.
oh word.
Just a side question, at the current moment, what would you consider to be the best long term investment? mutual funds, IRA, even a 401K?
Just a side question, at the current moment, what would you consider to be the best long term investment? mutual funds, IRA, even a 401K?
These can be avoided if you do it right. I have an IRA and the fees are very low as long as I have 3k in each fund.
I try to invest wisely, but I hate spending too moving stuff around and playing with it. IRAs are good for that. You only need to look at it once a year or so to reallocate.
These can be avoided if you do it right. I have an IRA and the fees are very low as long as I have 3k in each fund.
I try to invest wisely, but I hate spending too moving stuff around and playing with it. IRAs are good for that. You only need to look at it once a year or so to reallocate.
You could get another bike.
Money market...leave it alone. Anything with compounding interest...leave it alone. Open something you can contribute to...leave it alone.
I agree with Joker, 4k is a rather small amount to invest in short stocks. The guys who do that type of stuff do it on an almost or full time basis, with lots of $$$.
I agree with Joker, 4k is a rather small amount to invest in short stocks. The guys who do that type of stuff do it on an almost or full time basis, with lots of $$$.
The correct answer would have been, "No, but I did stay at a Holiday Inn Express last night."Joker, what are you? some sort of financial analyst?
"No, but I play one on tv..."