How to invest with our money?

Question

I currently have 2k in my bank... and want to know how should i invest it to gain something out of it beside letting it sit in there and doing nothing.... I dont like to play stock or anything like that because its very risky .. and i dont want to take any chance investing in anything that have risk...

does anyone know where i can invest this money so that it can be win win situation such as gaining interest or something?

Answer 1

You may want to consider a CD ladder.

You divide your 2K into 4 amounts of $500, then open up a 3 month, a 6 month, a 9 month, and a one-year CD.

In this way, you'll get better interest than a regular checking or savings account, and you're never more than 3 months from getting 1/4 of your money back.

Of course, you can change the amounts, and the time periods, as you wish.

I generally do them in years ( 1 yr, 2yr, 3yr, 4 yr, and 5 yr ).  So every year I know that a CD will mature, and I have the money if I need it.

Answer 2

Well, there is no return without *some* risk, but if you want a little bit better return with hardly any risk, try CDs or money market funds.  Check at http://www.bankrate.com for the best-paying CDs or money markets.  

Buying single bonds or T-bills is a bit awkward with only $2K.  Bond funds are a little riskier than CDs or money markets, not due to the bonds not paying off, but due to the future fed interest rate hike that will be coming later (which will make current bond yields look worse and thereby diminish the value of your bond fund.)  NOTE: That last sentence doesn't apply to bond funds that specialize in very short duration bonds.

The other thing to remember that inflation is a risk, too, so if your return isn't at the very least better than inflation, you're actually losing money in the long term.

Answer 3

The safest investment is in US government notes,t-bills, and bonds. The pay a guaranteed rate and are backed by the federal government. They are not always the best investment for all people, but they are very safe and secure. Investing in the stock market can be fairly safe if you invest in the right funds and sectors. A broker can help find a fund that is pretty safe with a decent return. Individual stocks is not the way to go! You can also look into a highly rated annuity or mutual fund and get a fairly safe investment going. A quality broker can analyze you risk tolerance and suggest a few options with fairly low costs and good returns.

Answer 4

No risk equal no gain!  And you will lose to inflation, so unless you have time, you will always lose.  Long term stock returns may be stable, but you need to specify the term of the investment.

Answer 5

I would keep 500/500 at all times in a savings and checking account at a local bank. I like to do 1000/1000, just so I have access to that money right away.

After than I put my savings in a high interest savings account at etrade. You can also use hsbc, ing direct, gmac, etc. All their savings account are FDIC insured and generally have the highest interest rates in the country.