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chitovivs | Where can i invest $14,000.00 for my daughter's college for next year? |
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Lee T
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Invest is the wrong word. Since you need the money in one year, stocks are a no no. Put it in a paypal account. It is currently paying 5.04% and you can take the money out any time. There may be other online banks paying a few fractions higher, but I trust Ebay, which. owns Paypal |
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fed up
 |
Simple, if it is all about time horizon.
If this is for next year take out a bank CD (certificate of deposit). This should get about 5% return.
Don't put short term money in stocks because you will likely lose some of it!!!
Avoid anunities.
Keep it simple! You did a great job of savings, don't get greedy now. Stick to CD's or high rate saving like ING Direct Orange savings, about 4.25 % withdraw at any time too. |
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Jim H
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You CANNOT even think about putting this money at any kind of risk. You need to think about either high yielding money market accounts or CDs.
You can go to bankrate.com to find the best rates and terms. |
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skipper
 |
If you live in a state with high taxes, you might consider purchasing 6 month T-Bills (no transaction cost through Treasury Direct) and no state tax. You can link them to your bank account and you can automatically reinvest the proceeds when it matures.
If your state has very low tax rates, then you can consider CDs (6 mo or 12 mo) but shop around for the best rate (often offered to attract "new" money). A money market account is another choice.
All of these choices earn in the neighborhood of 5% (about $700 before uncle sam takes his share). |
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northwoodsguymn
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If it's for next year, I'd leave it alone. Put it in a CD or something, but don't put it in the stock market. |
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zilch
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Money Market fund. Try sharebuilder.com |
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canwest4assoc
 |
That is a Surprisingly tough question! The stock market is amazingly
dangerous! too many risky choices . The basic bank accounts pay little
or No interest, even up to $100,000.
please run this question several times, give me time to find a reliable
answer . are you in Canada, or usa ? Our newer dutch bank, ING. pays
3.4 % , but in 1 year that is Only about $400. with your $14000.
I'm affraid you 're asking a lot with only 1 year .
It would take a Very very reliable stock trade to double or Triple your
$14000. in 1 year ! May I suggest Talking to your bank manager, &
he/ she will put you with an INvestment "Expert " even GIC's won't get
you much of a return in only 1 year . I do have 1 other suggestion,
this source is in Canada, but his office is huge so he may do USA as
well ! try phoning 1.800.270.0287 daytime. Mr Patrick Mckeough is
an Investment Expert. ( not in a bank) he owns the Canadian Wealth
Advisor . for a small fee, $69. + 6%= $73.14 - you will get a knowledgable
News letter . I believe, he can get you a 'Fast' Good return ( 1 year) on
your $14000. - I will not guarantee this, but I do believe in him . if you
are not able to access his number, E.mail me, & I will help you .
Please E.mail me anyway, I care how you do on this . Your kids
need All the help they can get. . if you are in the usa, perhaps your
husband knows away , Cell- phone, to reach this number ? if you
can'nt get thru , E.mail me, I will help :
canwest4assoc@yahoo.ca / I need to call him too . |
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mnid007
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The school should help you out with Stafford Loans, Plus loans, etc... Remember there are two types of loans, subsidized and unsubsidized. Subsidized loans occur interest before repayment. Unsubsidized loans do not occur interest until graduation or an agreed upon date. There is also Pell Grants.
At the college applying for, you will fill out a FAFSA. When this comes back, it will tell you how much of grants and loans you are eligible for through an ISIR.
Usually the rest can be obtained through other types of loans. I know about this because my daughter starts college in August and ....I also work for an University.
Good luck! |
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derobake
 |
Since your time horizon is so short, you will need to stick with conservative investments, ones that preserve your capital.
Normally, I would recommend I-bonds (savings bonds) from the Treasury department, because their interest it tax-exempt if used for college expenses. However, you have to hold them at least a year. You won't be able to tap the money until 365 days have passed. So, this may not be a good option for you. If interested, see www.treasurydirect.gov
Your time horizon is also too short to consider those 529 college plans. Just use a regular taxable account.
In your situation, there are two good options: bank CDs or a money market account. If you go with a bank CD, pick one that matures before she goes off to college.
Money market accounts are great because you can write checks from them for amounts over $250. Also, unlike CDs, you can add small amounts (like $100 or more) at regular intervals to them. But keep in mind, you must usually maintain a minimum of $3000 to keep the account open.
These investments are conservative, so expect lower returns with them. 4 - 6% annual return is probably a reasonable expectation. |
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millatyme0486
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Well being next year it will be difficult to increase that amount substantially. It would have been worlds of difference if you would have invested the present value of that amount a decade or two or ago to have the time value of money work with you.
However, I'd say if your trying to use that base to make money off of for the whole four years, the only way to make money quickly would be to open a margin account at a brokerage and invest in some risky securities to try and increase your gains for the whole college. |
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