What are some good money investments for a newb with a large check?

Question

I just got a chunk of money( more than this 22 year old college senior has seen in her short life anyway lol) from a automobile accident. My lawyers and my medical bills took a lot of it, but I want to do something with the lump I got so I will have a small nest egg to fall back on when I finish college, and also for the years to come, so what are some safe investments I can put my money into? Savings bonds, mutral funds, stocks, etc? What would be best? What are the pros and cons?Thanks

Answer 1

Sorry about your accident. There is a lot to think about. There are many choices for you. You have to this what you goal really is. Is this an emergency fund? perhaps the start of a down payment on a home? The beginning of your retirement savings?  Each of those purposes has a very different risk profile for you. Think about what you want to achieve and then start there. Short term money (i.e., emergency fund) most likely should not be invested at all, while retirement funds most likely would do you no good in savings bonds. Look at the Yahoo finance page for some ideas.  One word of caution do not but any individual stocks especially from tips you might get from anonymous people on the Internet. Good Luck!

Answer 2

you should take a look at howyoulivingonline.com.

Answer 3

A wise saying...Never put all ur eggs in ONE basket..Diversify ur funds as much as possible. Even if one does'nt perform well, u can rely on other. Coming to options-

Stocks--u need to invest time in knowing about the industry, company, and from time-2-time check the stocks how they are performing. we invest randomly. But investing in small amounts will not harm and in the long run, its a good option. High risk, high returns.

Bonds-- fetches u regular income but not more returns. Its a low risk, low returns but gaurenteed returns compared to stocks

Mutual funds--- Best option when u dont have the time to know, anlayze the industry. For Ex: The amount collectd from 1000 investors is invested by people who have sound knowledge about markets and shares and invested in 10 different companies and may be 4 different industries . It overcomes all the risks involved in shares--managed by professionals, diversification, low risk, average returns

But u need to select the correct Plan and Company for investing.