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,

Hookers, cocaine.

A year isn't long enough for stocks. 4 to 5 maybe.

I'd diversify it and do some ( very little if only a year ) in a stock index fund and some on a bond mutual fund and some on laddered certificates of Deposit.

Diversificatoon is the only free lunch on investing so best to use it.

Oh, start by paying off all debt you may have.

Send it to me and I will invest it wisely.

Index mutual fund. Warren Buffet likes this one. VFIAX...

https://www.forbes.com/sites/j...on-bet/#79a0fef42a6c

https://investorplace.com/2019...unds-warren-buffett/

Roth IRA?
Tax exempt (Municipal) bonds?

But I am no expert.

A few months ago I parked a $12,000 emergency fund in an online savings account at Ally. They are paying 2.2%.

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.

Cash in the safe. Or, gold/silver.

My Wealthfront high yield savings is paying 2.51% currently.

But a Vanguard index fund, like VFIAX would be good if you can risk it. The idea is that if the market tanks, you'd need to leave it in for a few years to recover.

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.

Sig228, please get it right if you are going to make the recommendation such as that.

"Hookers and blow" for crissakes.

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.

JAllen would have posted some gosh darn good advice. RIP Jim.

In some places a real estate purchase could double or triple in 5 years. Which could be a good return. Buy a lot for $10k and sell it in 3-5 years for $25k.

Citi is advertising a 2.62% money market. My bank, at that level, maybe 0.10% ...

The most well-meaning relative would only pay 5% tops (and you'd have to pay taxes on the $500) to borrow that sum; I'd park it as a liquid rainy-day emergency fund, and tell no one.

quote:

Originally posted by old rugged cross:
In some places a real estate purchase could double or triple in 5 years. Which could be a good return. Buy a lot for $10k and sell it in 3-5 years for $25k.

Where are you buying land? 1/4 acre here would require $200,000+. $100,000+ if it didn't have utilities.

My Investors Bank savings account is paying about 2.5% no fees, no minimum, no penalties.

Buy a Ruger AC556.

One of those P226s made and customized in Germany.