What to do with my money?

Question

With the economy the way it is and is heading, what would a smart move money wise be? If you had money sitting in a money market account now where would you move it? what about the stock market? 401k? what would you do with this money?

Answer 1

Pay off your mortgage or other debt if you owe for a car or anything that charges more interest than the money market fund pays you.  The stock market is in bear market territory, but if you invest for the long term, stocks are getting cheaper.  However, be very careful since a cheap stock can get cheaper.  Look at Gen Motors--it is back to the same price it was 50 years ago.

Answer 2

If it's in a 401K, I would find good growth-stock mutual funds that have averaged 10% or better across the last 10 years.

For a mutual fund to gain 10%/year averaged from 1998 to 2008, despite:

The dot-com bust

September 11

Protect your house from chemical weapons, with duck tape

Terrorist threats

The housing crisis

The sinking dollar

8 years of bad news stories about President Bush

$140 oil

The current housing crisis

And the fund STILL managed to turn $10,000 into $25,000 during that time (!?!), that's where I want to put my money.

Answer 3

Look into the possibilities of becoming a Day Trader, buy low and sell high, never go for long term stocks, there are too many variables currently involved. When Israel rattles Iran's cage, the oil prices go up, and having stocks that are influenced by the oil going up in price can be disasterous in the long haul.

The stocks I invest in are GOOG, BIDU, ORCL and AAPL,

I buy them when they are way down in value and then sell them as soon as they start earning at least $6-$10.00 per share, AAPL is an exception to this rule and so is ORCL, But BIDU and GOOG can climb in value as much as $20.00 per share, and when you own 1,000 shares of each stock, it does pay to monitor the stock prices several times each business day.  Set a financial goal in your head of how much money you want to make per share, and when the stock reaches that goal or close enough to that goal, sell it.  Don't be sorry if that stock continues to grow in value, be happy with the royal profit you have earned.  Wait for that stock to take a tumble, then buy it again and repeat the whole process.

If you play your cards right, and you don't get greedy, you can become a multimillionaire within one year!

Then, diversify into other types of  investments that hold promising futures, such as: trucking, shipping and air freight.

Soon, I will be investing in thousands of acres of farmland and ranches.  People will always need to eat and I intend to position myself in these markets so that when they become highly profitable (2 years) I can earn a substantial return on my investments.  I am also an inventor that has figured out a way to generate cheap electricity to power the irrigation pumps for the farms and crops and this will save me thousands of dollars a month.

Thank you

Answer 4

If you have a 401K you should be funding that to a minimum of the company match. Free money and everything is tax deferred. How you invest the funds in the 401K is dependent on your risk profile and your long term outlook on the markets. After that, it's probably a good time to pay down debt as that's a pretty sure investment. As for stocks, I don't think you can go wrong with energy. My favorite being Marathon (MRO). Although the Communists (er I mean Democrats) have dropped hints about nationalizing the oil companies.