Best way to invest right now??

[tipsymcgee]

Looking for input on where to invest about $8K right now. I know real estate and have a rental unit, I have a bunch of different CDs that aren't collecting much to speak of. What is a fairly safe investment and where should I begin? I do have an EJ guy we consulted about retirement, etc., but have done nothing with the stock market before. And I have a retirement IRA and kids college plans taken care of.

 

[SoMDGirl42]

Looking for input on where to invest about $8K right now. I know real estate and have a rental unit, I have a bunch of different CDs that aren't collecting much to speak of. What is a fairly safe investment and where should I begin? I do have an EJ guy we consulted about retirement, etc., but have done nothing with the stock market before. And I have a retirement IRA and kids college plans taken care of.

Check with the bank you have your CDs now. I have a friend that is a member at the credit union and they have a financial adviser there. She goes once a year for free advice on her work 401K. She's making great money with their advice.

 

[MMDad]

I prefer to invest in valuable metals, like lead and brass.

 

[mv_princess]

My pocket seems like a great place.

 

[jetmonkey]

Guns and ammo

 

[itsbob]

Check with the bank you have your CDs now. I have a friend that is a member at the credit union and they have a financial adviser there. She goes once a year for free advice on her work 401K. She's making great money with their advice.

Credit Union for advice sounds good..

Banks will try to sell you THEIR products.. Only person that makes any money is the person selling you those products.

CDs have to be the worst, at least the ones I've seen.. 1% annual yield? MAYBE 2%?

You need to ask the Bank/Banker. "You take my money and give me 1% interest on it, where do you invest my money and make 10 - 20% on it?"

A bank would never consider a 1 - 5% ROI a good investment, why do they for YOUR money??

 

[itsbob]

BUT would say the best person to ask about investments would be ROMNEY!!

He's actually MADE a lot of money during a period where the gov't has changed the rules, and have taken 100s of millions of safe investments and made them worthless..

 

[tipsymcgee]

going to meet with me EJ rep and probably do an IRA

 

[ProfMoneyWise]

If you have non-house debt the best place to invest that money would be to pay off the debt.

If you have no non-house debt the best place to invest that money would be into an emergency fund equal to 3 - 6 months of your monthly living expenses.

If you have no non-house debt, an emergency fund, seek advice as you plan for investing.

 

[tipsymcgee]

Our only debt is house and car payment. Have a decent amount stashed away for emergency fund, plus a rental condo that is currently rented and bringing in a little income. Wife does have a business start-up loan that she is paying through the business.

 

[ProfMoneyWise]

Our only debt is house and car payment. Have a decent amount stashed away for emergency fund, plus a rental condo that is currently rented and bringing in a little income. Wife does have a business start-up loan that she is paying through the business.

Then the best place for this money is the car and any left over fills your EF to the 3 - 6 months worth of living expenses.

Keep the business separate but run it debt-free as soon as possible.

I recommend two quick-read books as follows:

Personal Finance: My Total Money Makeover by Dave Ramsey

Business: Entreleadership by Dave Ramsey

Dave Ramsey Homepage - daveramsey.com is the least expensive place to acquire (print or kindle).

Try living debt-free and adequately covered for emergencies. If you don't like it you can always revert back to having debt quickly.

 

[itsbob]

Then the best place for this money is the car and any left over fills your EF to the 3 - 6 months worth of living expenses.

Keep the business separate but run it debt-free as soon as possible.

I recommend two quick-read books as follows:

Personal Finance: My Total Money Makeover by Dave Ramsey

Business: Entreleadership by Dave Ramsey

Dave Ramsey Homepage - daveramsey.com is the least expensive place to acquire (print or kindle).

Try living debt-free and adequately covered for emergencies. If you don't like it you can always revert back to having debt quickly.

If he's got a ridiculously LOW interest rate on his car loan why pay it off?

And I'm just asking for the sake of asking.. If you have a car loan at <5% and you can make >10% why put the 8k towards the car loan?

Mortgage I can undersand, because even if it is 4 - 7% interest, it's 30 or more years worth of interest on that 8k you'd be saving.

 

[SoMDGirl42]

Credit Union for advice sounds good..

Banks will try to sell you THEIR products.. Only person that makes any money is the person selling you those products.

CDs have to be the worst, at least the ones I've seen.. 1% annual yield? MAYBE 2%?

You need to ask the Bank/Banker. "You take my money and give me 1% interest on it, where do you invest my money and make 10 - 20% on it?"

A bank would never consider a 1 - 5% ROI a good investment, why do they for YOUR money??

Actually, the credit union didn't try to sell her any of their products. Surprise, surprise. They just told her which products to chose from the ones available through her work 401K. :shrug:

 

[itsbob]

Actually, the credit union didn't try to sell her any of their products. Surprise, surprise. They just told her which products to chose from the ones available through her work 401K. :shrug:

I got that.. and that's awesome.


That's the kind of valuable advice that's hard to come by, advice that helps you, and not the person giving it.

 

[ProfMoneyWise]

If he's got a ridiculously LOW interest rate on his car loan why pay it off?

And I'm just asking for the sake of asking.. If you have a car loan at <5% and you can make >10% why put the 8k towards the car loan?

Mortgage I can undersand, because even if it is 4 - 7% interest, it's 30 or more years worth of interest on that 8k you'd be saving.

5% margin

Out of that 5% comes risk and taxes.

Risk is never factored into the equation. I also ask it this way. If you had no debt would you borrow $8K and invest it in the market?

 

[itsbob]

5% margin

Out of that 5% comes risk and taxes.

Risk is never factored into the equation. I also ask it this way. If you had no debt would you borrow $8K and invest it in the market?

Sure, people do that everyday, and are more often than not making money.

You buy a rental property via a mortgage, payment is $1000 a month, but you can rent it for $1200 a month..

Take out an 8,000 loan at 4% interest and make 10% interest.. in 5 years the loan is paid off

$8839 total cost of loan (money is cheap right now)

$13,000 total investment value in 5 years. (-650 in taxes still nets a $4,350 profit)


There has to be risk for there to be any reward, but as cheap as money is right now it's hard to say it wouldn't make sense to take out a loan to invest.

Sounds like a smart strategy..

 

[ProfMoneyWise]

Sure, people do that everyday, and are more often than not making money.

You buy a rental property via a mortgage, payment is $1000 a month, but you can rent it for $1200 a month..

Take out an 8,000 loan at 4% interest and make 10% interest.. in 5 years the loan is paid off

$8839 total cost of loan (money is cheap right now)

$13,000 total investment value in 5 years. (-650 in taxes still nets a $4,350 profit)

There has to be risk for there to be any reward, but as cheap as money is right now it's hard to say it wouldn't make sense to take out a loan to invest.

Sounds like a smart strategy..

Debt-free investors are able to mitigate risk and hit singles and doubles that will equal the net gain of a leveraged investors triples and homeruns.

If that same investor you speak of buys the rental for cash his return each month is the $1,200 not the $200.

More room for things to go wrong, things to get fixed, and if the home sits empty for awhile the investor is not left in an immediate lurch that can erase his profit.

The cheapest money is the money you have in your account.

I invite you to join in the class we lead. It is the "other" way of looking at money and how to handle it and how to use it.

 

[Seahawk]

I went to two Credit Unions and a bank - getting closer to retirement and wanted to get things settled - I went to two people who recommended EJ - my daughter has them too - I don't have a problem - I went moderate - some in annuity and some in stock/bonds - that was one of the first questions I was asked - what were my goals??? - - For me I did not want to put my money into anythiing that in case of a emergency I could not get out - -and concerned that gov't would somehow latch on to our TSP

 

[czygvtwkr]

Of everyone offering advice nobody asked the two most important questions.

1) What are your goals
2) What are you comfortable with?

You want to choose something that has the best possibility of achieving your goals while being in your comfort zone.

For I'd say 95% of the people that ask this question an exchange traded fund that tracks the S&P 500 is probably what they want. The exchange traded funs are much cheaper to invest in that similar mutual finds (the managers take way less) and often out perform mutual funds.

 

[tommyjo]

What's the right answer to the original question? Go talk to someone with some experience, expertise and well rounded knowledge who can help guide you and answer questions.

What's the worst possible course of action for the original poster? Following investment advice of internet board posters!