Do I have enough to invest?

Question

I have $10,000 in my savings account and I want to invest it. Is this a substantial amount to invest? Or should I keep it for a rainy day? Any advice?

Answer 1

Before you start investing you should have an emergency fund. Aside from that $10,000 is definitely enough to start investing. I'd suggest finding a good mutual fund family (T. Rowe Price is my favorite), open up a money market, pick 3 or 4 mutual funds you want to invest in and then SLOWLY over time transfer money into those funds from your money market fund. That way, if the market does continue to tank you won't have all your money invested at the higher prices. Good luck.

Answer 2

I wouldn't put it in the stock market right now.  Maybe consider a CD or an online savings account like HSBC or EmigrantDirect.  HSBC is paying 3.5% right now which isn't much, but at least it's a gain.  You have to have balls of steel to invest in the stock market right now.

Answer 3

If this is your 'rainy day' fund for emergencies like car repairs or paying bills if you loose your job, you should not invest it.  Rainy day funds must not be exposed to risk that could loose principle and must be keep liquid so you can get at the money quickly.

You could put the $10k in an online savings account with ING or HSBC and get an ~ 3% interest rate.

If you really want to start investing, you could open an account with Vanguard or Fidelity and purchase a noload index fund of the S&P 500 or Wilshire 5000.  Generally if you sign-up for monthly reoccurring investments of $50 or $100, the minimum investment amount is waived.

All this being said, if you have high interest debt, you may want to take a look at paying it down before or in conjunction with investing.

Answer 4

you should invest the following ways

20%   stock market

29%   equity mutual fund

20%   debt equity fund

20% fixed deposit

20$  saving account

Answer 5

Another option that you may want to consider are Treasury Inflation-Protected Securities (TIPS).  With a TIP the pricinpal is adjusted along with inflation,  in addition when you recieve interest payments you get that on the adjusted principal.

So if your main concern is inflation and you are not an agressive investor this is a good alternative.

Answer 6

Hey Jane, can we date?  You are a rare breed in the female specie that actually care about finance and are responsible.  

Hope you are successful at whatever you do; you are heading in the right direction.

Answer 7

You don't say what your situation is. Are you close to retirement, just starting out, have kids, live alone?

You have enough to invest but you should also have something set aside for that "rainy day". The general rule is at least 3 months living expenses. Whatever is left I'd put into a Roth IRA. Your money will grow tax free until you retire. You can contribute up to $5,000 this year (the amount is raised every few years). This should be your priority, as they say, "Pay yourself first!". Open the IRA account at a brokerage (Ameritrade, Scottrade, Etrade, etc.) and you'll be able to invest your money in stocks, bonds, mutual funds, and just about anything else. Get a few books on investing at the library and learn how the market works and how different investments compare. Investing as much as you can, as early as you can, will maximize the benefit you get from compounding.