 Who buys stocks when everyone is selling? |
| You know how you always hear about how a stock is about to crash, and everyone is selling it. Who buys it in this situation?... |
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 Why is the stock market soaring when the economy is gloom and doom? |
The housing market is down
Christmas spending is down
Gasoline is above $3 a gallon
Prices on everything is up
Bush is spending a billon dollars a day on a hopeless war
This ... |
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 If you have 750K cash in your hand, what would you do with it? |
| FRIEND'S COMPANY IS BEING BOUGHT AND HER STOCKS ARE WORTH $750K- SHE'S PLANNING TO PAY OFF HER HOUSE( AROUND 100K MORE TO GO), SHE GOT 401K & OTHER INVESTMENTS.NO CAR, STUDENT LOAN OR CA... |
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 Want to buy some stocks? |
| where can i buy stock online at?... |
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 Why is investing in Mutual Funds bad? |
i heard I should not invest in mutual funds, but invest in Stocks and Bonds only
why is this? why are mutual funds bad? thank you. i'm 24 and starting to invest into my 401k and am ... |
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 Do you think the financial markets will keep fluctuating until after the election? |
| That's what I'm thinking - no one wants to commit until they know which way the country is going. I don't think it will settle down until the election is over (then there will be about ... |
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 Have any stock market advice? |
| i am 13 and in need of 2000 dollars. my parents are letting me get a stock or two so i can gain this money and learn a bit about the market! i am really excited so any easy to understan URLs or your ... |
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 What's the best way to invest if I have $10000? |
| I thought about stock but don't know which one is good? I already have cd, anybody have some advise or opinion?... |
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 I'd like to invest in a couple stocks, but do not know how? |
| Well, I am thinking that I would like to experiment with the stock market a little. I am a college student though, so I don't have a lot of money to spare. I was thinking I would invest in maybe ... |
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 A friend o mine has just inherited £200 000, what is the safest, most profitable way to invest this amount? |
| He is not a UK citizen, so any advice I give him is not really applicable, please answer with this in mind.... |
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Heidi B | I have about $40,000 that I would like to invest over one year. What will give me the best return? |
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muncie birder
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One year is a very short period of time investment wise. There are many sources of static during such a short period that can have a very detrimental impact on your investments.
In my opinion your best option for one year is t-bills. Currently 6 mo bills pay a little over 5% tax free from state and local taxes.
Here is the link to learn more.
http://www.treasurydirect.gov/indiv/products/prod_tbills_glance.htm
Any other option over such a short period is more in the realm of speculation rather than investment. |
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crzyaltego
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the safest- emigrantdirect.com high yield savings- 5% interest
middle ground- buy mutual funds at scottrade.com or another source and you can pick some high risk and some low risk
most risky- buy individual stock- you can go with big name companies that are less risky or you can go with penny stock that is very risky. |
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curiouse123456
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play safe.
CD insured by FDIC, with interest 5% or over.
EmigrantDirect saving rate now is 5.15%.
(because your time frame is only one year).
For stock trading, you have to study it first , it takes me 2 years before i make money in stock.
Only one book to read, it is "How to Make Money in Stocks" by William J. O'Neil.
When you are ready to open an online account, tradeking trade fee is $4.95, and scottrade is $7.
If you or others want a good deal, such as 3 free trades from scottrade or 4 free trades from tradeking, pls email me at curiouse123456@yahoo.com |
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Adam J
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Generally in investing there is a tradeoff between risk and return-- potentially high return investments also tend to involve the greatest risk.
If you plan on spending all 40k one year from now (say on a house or college tuition) then you'll probably want to invest in a money market account or buy treasury bonds.
If you don't need to spend all or most of the money in the next few years the stock market will likely offer you a better return-- I'd recommend sticking your cash into a mutual fund or exchange traded fund that tracks the market (for example the SPDR or iShares S&P 500 funds, SPY and IVV respectively). Again over a one year period the stock market is a considerable risk. |
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sothere!
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The first thing you have to determine is the amount of risk you are willing to take. That is first and foremost.
If you are investing for one year only, then I assume you want low risk because you already have the money earmarked for use in one year.
If this is the case then the next step is picking an asset class. Other posters have recommended various fixed income assets like bonds and money market instruments. Before you invest in any of those things you have to do a little thinking.
Any investment you make is going to be subject to naturally taxes. However one thing that people always overlook especially with shorter term financial investments is inflation.
Currently, inflation is about 2.7% annually. Basically that means that your $40,000 will be worth 2.7% less in a year. You will also be taxed on any investment gains you make (unless you invest in something tax-exempt).
The point is that should you choose a fixed income investment, that investment needs to provide you with at least a 2.7% return (net of taxes) for your investment to be truly "profitable".
If you invest in a CD earning 5% over a year but your after tax return is 2.5%, (I am making these numbers up) then you actually lost 0.2% on your money.
If you invest in a tax-exempt bond fund and earned 3%, then your $40,000 actually "grew" even though the fund return was less than the CD's return.
Most people go for the headline return and ignore taxes and inflation. That is not the right way to invest especially in fixed income securities.
For a one year investment, you have to look at your return net of taxes versus inflation. |
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Franco
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A term of one year is far too short to invest in the stock market. The only suitable investment for you is a bank deposit, tax free if possible. |
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keni
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how much can you risk losing? |
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aluisious81
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Since you only want to invest for one year, I recommend a CD. With the lump sum you are investing, you can get a pretty good rate at zero risk.
Stocks are better geared toward long term average performance than short term, fixed period performance, where they are more subject to simple luck. |
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Stephanie C
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What about a CD? I know they have 5 years but with $40,000 aren't there CD's out there for a year length? |
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Jared S
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A good savings bank if you don't want to loose anything. |
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Dan M
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If you are an experienced stock trader. I would invest in some solid stocks for long term. But if you don't want to do that then an online savings accounts gives back excellent interest these days. |
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Market Flavor
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I would start by opening an online savings account with HSBC. They provide a 5.05% return and you can pull the money out at any time. As far as I know they have the highest yeild for an online savings account. With a CD you are stuck holding the CD for the specified amount of time. I think you can get a CD rate at about 4.9% but then you can't touch it for a year.
If you can afford to loose some of the money I would consider investing this the stock market this summer or at the end of the summer. Hopefully all this bad news and market uncertainty will be behind us by then. Use a Market tracking ETF like "SPY." SPY tracks the S&P 500. |
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