What is the best way to invest 10k for the long run?

I have a house, paid off my car, and wish to invest the rest. I was told to put $5k in a ROTH IRA and contribute some each month. I also read up on the COVERDELL education plan (start with $5k and ADD monthly).
Neither plan is taxed, but penalized for early w/drawl. That's important to me.
I wish to have enough funds for my 4 year old daughter's future college needs. As well as have some cash on hand when I retire. I am 37 now.

NOTE: PLEASE do not try to CON me into foreign transactions and please don't respond unless you have solid Financial needs training or knowledge. I appreciate your answers.
Thank you.
Additional Details
I will give 10 points to the BEST answer! thanks again!

Balance out what is most important to you...definately contributing further on a monthly basis is a great idea.

You can ask 1,000 people what they think you should invest in and you'll get 1,000 different answers. In the end it comes down to one thing. Supply and Demand. The more people buy the more the price (in this case stock price) goes up.

Do some research and find out what the Baby Boomers will be spending money on in the next 15-20 years. Baby Boomers are the biggest driving force in history. The more people spending money, the more the prices go up.

Backing proof: Baby boom started in 1946 and went until roughly 1964. The peak of the baby boom was in 1958.

In the 1950's Mattel flew onto the market introducing Barbie.
In the 1960's HAsboro flew onto the market introducing G.I. Joe

Why? Because kids love toys and with the massive amount of babay boomer kids out there and the things happening around the world (women were stay at homes and men went to war) it was an EASY sell.

skip ahead to the 1990's. The 1990's saw what's known as a bull market. This happens when the market is doing very well. You can basically invest in anything and it will do well. I'm sure it's no coinicidence that the babyboomers were reaching their peak earning years around that time (age 45-55) and began dumping money into the stock market becasue retirement planning was in the horizon for them. As mentioned previously...the more money spent, the more prices go up. The largest demographic of people in history dump all their money into the stock market guess what happens....Bull market.

Look at the last couple of years. What have been some of the major things to hit the market and how have their stocks responded?

Financial sector: Baby Boombers are looking for secure places to put thier money so they look to GIC's (at banks) and Insurance products. no suprise those industries have done well up until the housing crash in the US.

Health Services: A company called Pfizer has jumped onto the market a few years ago. What are some of their biggest products? Viagra (if you don't know what this is, look it up. Guess which demographic is reaching the age when certain body parts stop working like they used to?) Ever see the Celebrex commercials? Guess what age group is starting to notice they are getting to the ages where anti-inflamatories are commonly used? Ever hear of Liptor (the top selling drug in the world used to lower high cholesterol)? Guess which demogrphic is right around age 50+ (the ages when High Cholesterol is at it's highest diagnosis rate)?

Technology: Baby Boomers love gadgets, especially ones that can give them less work and more play. Ever hear of Research In Motion (RIM)? They've been tearing up the stock charts over the last couple years because if this little device that allows people to check e-mail, organize your day, make phone calls, etc from anywhere. It's called a Blackberry. Their entire business more or less revolves around this one product and Baby Boomers (and others) love these things.

Recently, there was a study that suggested that Ford was the most stable of the North American car companies. Guess which company makes one of the best selling "Mid Life Crisis cars"...the Mustang. Guess which demographic is hitting their midlife crisis? I'll give you a hint...every 7 minutes a baby boomer turns 50 :D I'm sure that's not the only reason Ford is doing well amongst it's North American counterparts, but I'm sure it also helps.

I'm not in any way endorsing that you invest in any of those companies, but look at the trends set by the baby boomers and follow those industries. That's just my strategy for helping my clients. Find a investment broker and they will be able to help you find the places that are best.

I will give a good safe, cheap,and great stocks to buy for the long term like PFE, MRK, WFC. BEST LUCK IN YOUR ACCOUNT AND TRADE.

I think your general plan to start a Roth IRA and Education Fund are good. Understand that once you deposit the money in those accounts, you should not take it out early - so be sure that is what you want to do. For an IRA, I would go to one of the large mutual fund companies: Fidelity, American Century and Vanguard are just a few. My advice for $5,000 is to start with $2,000 in a stock fund - maybe a large cap stock fund, nothing risky. Put the other $3,000 in a money market account in your Roth IRA. Then move $1,000 per month from the money market to the stock fund. The reason I suggest this is that the stock market is very uncertain right now, so going in a little each month helps you average the cost out over time. When you add monthly, put that into a stock fund. When you get over $10,000, look to divide your IRA among 2 or 3 stock funds, so that you are diversified a bit more between different sizes and types of companies. For the education fund, I suggest something more conservative, but you can also do that through any of the companies I mentioned.

At 37, you should very definitely be thinking about retirement. It's okay to want to send your daughter to college, and you should save some for it, but don't make it a top priority - she can borrow money for college, but you can't borrow a dime for your retirement.

Putting $5k into a Roth is the annual limit, at least this year, although it is going up all the time. Several good mutual fund companies are very easy to work with and will help you set this all up. Take a look at T.Rowe Price and Vanguard. Both have funds that if you tell them the year you want to retire, they will allocate your money for you.

With the stock market being as nasty as it has been (I have watched 20% of my account disappear in the last six months) here is something that I will be ridiculed for saying, but I will say it anyway -

Series I U.S. Savings bonds. Currently paying 4.78%, guaranteed to always draw 2% over the rate of inflation. This is significant for two reasons. First, it's a guaranteed return, and second, inflation is probably heading north. While I would never recommend that a person place his/her entire fortune in this vehicle, if 10K is all you have, then you should consider it for part of your money.

An added benefit - it if you use it to pay for qualified education expenses for your daughter, then all the interest it earns over the years is tax-free - depending on your tax bracket, this could make your actual rate of return a lot higher. You could still cash them if you decide to so so later on, you aren't committed to anything, and the penalty for cashing one is only 3 months interest, and even then only if the bond is held for five years or less. After that, no penalty.

Bottom Line: $1K into an emergency fund, like a money-market checking acct. $4K into a Roth IRA and put $300 per month into it from now on. $5K in a Series I-Bond for your daughter (List her as a beneficiary, not a co-owner, so you can get the tax break).

Check ING They are paying about the highest interest rates if invested for 5 years in a CD

Doesnt it make you just laugh where the banks think they are doing you a favor for paying you a .5 or 1/2 a percentage point on your money lol

contact Vangaurd they will give you information that can help you make a decision

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