Looking for advice on the best way to invest $25,000 as someone in my mid-20's?? ?

Question

I am looking for advice on the best way to invest $25,000.00 I recently turned 26. I am not looking to purchase a home until my late 20's as I may need to travel/relocate within the next couple years for work.

I do have a 6 month emergency fund available, and I am able to pay all bills with my current income, so I will not need the $25K for at least a couple years. I don't have much credit card debt, but I do have a Car loan like $270 PM.

I am looking for the highest rate of return, and I am open to taking investment risks. I would like to learn about investing in stocks/mutual funds, but I don't know if I have enough experience/knowledge to start myself, and wouldn't know where to begin with this sum of money.

Any input/suggestions appreciated!

Answer 1

ok first tip if you don't feel comfortable with the knowledge you have in the stock market to invest on your own i suggest hiring a financial ad visor to handel that matter! but there are few things that i suggest find some one that will tell you how much money they have and make sure they have your best interest at heart! but if you must do it on your own i suggest you go to Ing and open up a high interest savings account and they also give you information on How To invest! but if you do it by your self dont put it in one place move it around! you should invest in every day items ex: orange juice, milk, and ect!

Answer 2

Pay off all debts, they return zero. Invest in a good MMMF. I like Ford INterest Advantage, it's paying 4.1+ and higher at your likely investment level.

Answer 3

Given the short time horizon (a couple of years) and that you have consumer debt, your best rate of return will be to pay off the credit card and auto loans, unless you got a really sweet deal on them.

Congratulations on having a serious emergency fund.  I heard a report that 60% of families have no savings at all.

If you to invest in the market because you think the economy will pick up soon, you could invest in a total stock market mutual fund like Vanguard's Total Market fund.  It's low cost and will diversify you big time.

Answer 4

Either invest in a 401K, IRA, CD, or High yield money market savings account.  I would also say to try and pay down all your debts so that its interest does not cut into your investment gains.  There are tons of investment opportunites out there.  Research at sites like http://www.bankrate.com and http://www.morningstar.com  Good luck.

-EJP-

http://www.rmicsi.com