No investing knowledge.....need some help investing $50K?

Question

I am very very new to investing. I have savings account(s) and a money market account, but the low risk/ low yeild accounts are not cutting it for me. In about 2 months, I will be able to invest at least $50K. I would like someone to point me in the right direction. Thanks

Answer 1

Max don't be too hasty in jumping to any wagon without studying it first.  Since you know about Mutual Fund.  I suggest try Treasury Bills.  Since it is backed up by the Treasury it is safe, minimum I know is 5 years Maturity.  Most banks can buy T-Bills on your behalf for a service charge.

You could also try Bonds.  Don't put all your savings to any trade instruments other than Savings Account, you have to remain fluid.  If you can loan money at low interest and hedge it with what you have and deposit more in Mutual Fund, see if you would make a profit after maturity.

Answer 2

I wouldn't pull all or most of your cash from the savings account to invest in stocks. Keep enough in cash for emergencies. It seems you are looking for a higher interest rate than what savings accounts are offering right now. Look into companies that have been offering stable dividends. Given the beatdown most stocks have taken this past quarter, some dividend yields have gone up a lot. It is not surprising to find 5 to 7% yields these days. Last I looked, Pfizer dividend was >7% and Bank of America was >10%. (I am not recommending either stock especially any financial companies) but if you have two months before you invest, look into some stable dividend offering companies. Please remember, these are stocks so the value of your investment may go down (and most probably will), but you might as well get paid dividends while you wait for things to start picking up. Good Luck!!!

Answer 3

Short answer, be careful of any advise you get here.

I would look into Charles Schwab.  I understand they give pretty good low cost advice.  I personally use Scottrade and like their service and commisions but probably would not be with them if I was looking for advice.

Really how to invest depends on your goal and timeframe for the money so with the information you have given in your question nobody can give you any dencent advice, I would seek some advice from someone you trust to help you allocate your money.

Answer 4

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GOOD LUCK

Answer 5

This site will give some good information.

http://www.stocks-simplified.com