How should I invest my money?

Question

I have $2000 saved up. I want to invest it for 2 years. I dont want to invest in the stock market, but something safe.

Answer 1

I think maybe you should try to be a little more aggressive with your 2 grand.  Right now you have a great opportunity.  You've heard "buy low, sell high", right?   If you tuck it away and let it earn 3-4% a year, like in a money market, well youre not losing any but you have no chance of multiplying it anytime soon!!!

If you check the market regularly and look at past trends you will notice that the dow has tanked for almost 3 months now without a rebound.  This will NOT continue and in fact yesterday may have been the turnaround.  By that I mean a short-term turnaround is imminent.  The dow went from over 13000 to under 11000 in the last couple of months so expect it to at least get back to 12000 probably closer to 12500 very soon.  Then it will most likely tumble some more.  So on for the next 2 or 3 years maybe before we have a real turnaround year like 2003.

So what do you do?  Invest in stocks.  Follow the market.  I would buy maybe 4 different stocks at $500 each.  You want to invest at least $500 in a stock or the $10 or whatever trade fee will be a larger percentage of your investment.  Maybe go to Fidelity, or Scottrade or something and chart a stock you are interested in and compare it to say the DJIA.  Most are more volatile than the DJIA.  That means when the dow drops 5%, the stock will drop 10% but when the dow goes up 5%, the stock shoots up 10%!!!

I would buy a beat down financial, maybe WM, or BAC, and ride it out for about a month and a half or so.  You may very well turn a huge profit on one of those.  Here's why:  many are at 10-20 year lows but are well established with tons of assets.  Wells Fargo just released their recent earnings and they beat projections.  The stock has skyrocketed in the last couple of days.  I think WM releases their earnings on the July 22nd so I would buy some before then.   If they are even slightly better than projections, the stock will jump.  This is a huge opportunity.  Also Ford (F) is in the tank but is the name amongst names in the industry and will eventually turn it around.  Now is the time to buy.  Even if you only own the stock for a month or two then sell it, you could make a killing in a very short term.  And I think Ford is actually a great long term investment too.   I would be tempted to buy an oil/energy stock given how well they have been doing, but I don't want to buy high.  The price of crude is finally slipping so a correction seems to be imminent in the short term for the oil companies.  A drop in the price of oil will help a lot of businesses such as the airlines.  You may want to pick up one of them.   JBLU for instance.  And for your 4th stock, maybe a tech stock.  AMD is extremely cheap right now and they are coming out with earnings as well very soon I think.  Intel just did and they surprised and the stock jumped.

Ok, I'm done with my novel but I seriously hope it helps.  Follow this and I really think you could turn a 30% profit in under two months.  If you start to follow the market it will become addicting.  Frustrating at times but you can do VERY well if you follow trends and dont second guess yourself.  Good Luck!!

Answer 2

Savings Bonds, number one and Bank CDs number two.

Answer 3

Two years isn't going to get you much return.  

I wouldn't choose any mutual fund.  Fees are always too high.  What about an ETF?  Vanguard.  Low, low fees.  Basket of stocks, so you're not exposed to the failure of any one of them.  Get and ETF that gives distributions back to you, hopefully more than once a year.

MoneyEnergy

http://www.getmoneyenergy.com

Answer 4

CD's if you want safe, or Treasury Bills

Answer 5

A bank or credit union CD may be the easiest way to go.  Some online banks offer comparatively high interest rates.

Answer 6

Invest with a club as there are no fees, they are like minded investors going for the same thing and it is fairly safe. the stock market is to unstable, I invest in a forex club as it does not matter what any economy is, there is always profit. Stay away from companies that make outlandish claims of 300% profit. A good club is Green Briar Wealth pool write to them at [e-mail] you can either receive monthly profits on your investment or keep rolling the profits for as long as you like.Good Luck in all your investments.

Answer 7

It's stupid to lock your money in CDs now.

You can try to invest on Prosper. You lend your money out to earn some interest. Rate can be as high as 35%.

Answer 8

From one point 2000 is not substantial enough amount to spread over stocks (mutual funds) and CD/Money Market. But from another point – nothing is too small. I would suggest putting 1000 to some sort of bonds fund and another 1000 invest into FDIC insured CD or Money Market. That will give you some flexibility in case you will need your money sooner than 2 years.

http://www.moneymarket.24by7info.com

Answer 9

I recommend just keep the money in cash savings. It might be an idea to spread the risk a bit and, say, put 500 into a stock market managed fund, however these kinds of investments should be takne with a 5-10 year view. If you think you will need the money before then, I would leave it all in cash

Answer 10

If you want something safe, just leave your money in a savings account. You will never earn good money by investing safe... it's called the risk-return tradeoff. If there was a 100% risk-free way to get a 10%+ return per year, nobody would be investing in stocks/options/forex.

If you leave all $2,000 in a bank account for 2 years, you might earn a whopping $163.20!!!!!!!!! :O :)

Answer 11

http://tomscash.blogspot.com/

Have a read of this and check out the links, the more money your willing to invest the greater the returns, all legal above board and safe too