Money markets? Mutual funds? Stocks? I’m looking for a place to park some money (that I don’t need right now) safely and earn more than a savings or checking account. Could be for a year; could be 4-5 years.
Thoughts? I’d like to do this on my own with no or extremely minimal fees.
Edit: no mortgage; no debt obligations. This is not really “fun” money...but close.This message has been edited. Last edited by: bcereuss,
10k for a year? I’d probably park it in short term T bills with staggered maturities. Pretty much cash with some interest. Longer term I’d think about mutual funds, but darn things are frothy in the US stock market these days. Doesn’t mean they won’t go higher, but there is plenty of potential downside.
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Posts: 16316 | Location: Montana | Registered: November 01, 2010
First, as noted in an earlier post pay off your debt, maybe even make extra payments on your mortgage. Second, determine your goals and assess your risk tolerance. Your age is a factor as well. Given that information I will give you my two cents. Ten grand is not what it used to be.
Remember the old saying, that bears make money, bulls make money, but pigs never do.
Posts: 6228 | Location: MS GULF COAST | Registered: January 02, 2015
For that amount of cash best find a good money market account which should pay 2.25 to 2.5 % while being FCIA insured and you can get the cash anytime you want/need. I use Marcus (Goldman Sachs) to park cash which currently pays 2.25%. This fluctuates monthly along with the fed. If you don't mind tying it up for a year or more, a CD can get you a bit more interest but of course you pay for this with less liquidity.
If you want to roll the dice, find a promising IPO. You can make quick profits but be prepared to possibly take a loss and realize if you cash out in less than a year it's considered a short term gain with higher tax implications.
Men fight for liberty and win it with hard knocks. Their children, brought up easy, let it slip away again, poor fools. And their grandchildren are once more slaves.
Posts: 9595 | Location: Fort Worth, Texas | Registered: February 07, 2007