I have 3,500 extra dollars to invest with?

Question

Whats the best way I can turn that money into more money?

Answer 1

These days $3500 isn't really very much money. It's ridiculous to suggest that you hire a money manager for such a small sum.

The answer depends on a combination of how long you expect it to be before you need to draw on it, and how willing you are for its value to fluctuate up and down. If it's only a few years, your best answer is a high-interest savings account. There's quite a few of them available; I personally have had good experience with HSBC Direct, which currently pays 3.5% and ING Direct.

If you're thinking of it as the beginning of a nest egg and you're OK with up and down fluctuations, it makes more sense to put it in the stock market. Picking individual stocks is hard even for professionals, and impossible for such a small amount, so your best bet in that case would be a broad-based index mutual fund. Again, you have lots of options but I've personally had good expreience with Vanguard's Total Stock Market fund, which has very low costs and no annual fee if you agree to get all your reports online rather than on paper.

Good luck, and remember that if you find you have more money, you can always add it to your nest egg to make it grow faster.

Answer 2

It depends on what kind of investment you're are going to put that money into: paper assets, real estate, business, or some other vehicle that can give you cash flow and/or profit.

Paper Assets:

Paper assets are stocks, bonds, mutual funds, CDs, etc. that can give you cash flow (dividends, interest) and price appreciation when sold (profit). However before you put your money into these you should learn about investment education. There are some books that I can recommend:

"Guide to Investing" by Robert Kiyosaki

"How to make money in Stocks" by William J. O'Neil

Do a search on Amazon.com. Take some classes if you want.

When you're owning real estate and a business you have control over their operations as well as their money. When you have the knowledge to profit from these investments you can make more money in the long run.

I believe the best way to make more money is through educating yourself in financial intelligence and picking out a hot investment.

You can also try network marketing or selling stuff online.

Answer 3

If you are a full time professional who wouldn't have time to closely monitor the markets, hire a money manager who will help manage your investments for you.

Investopedia.com defines money managers as "A business or bank responsible for managing the securities portfolio of an individual or institutional investor."

Typically, money managers are qualified professionals whose job is to help you get the best return for your money. They research and select different investment options, monitor the different markets to help you maximize returns.

In return for a fee, your money manager will help you develop an appropriate investment strategy, and buying and selling securities to meet those goals. With fee-based management, as opposed to transaction-based management, you and your advisor are on the same side. You no longer have to question the decisions of a broker to buy or sell your securities.

A professional money manager does not receive commissions on transactions, but are paid either based on a percentage of assets under management, or earn their fees based on returns generated for your portfolio. Therefore, it is in the best interest of both the money manager and client to see the portfolio grow.

To find a good money manager, Google "money manager".

Hope my input helps. Good luck!

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