Where to put a small nest egg?

Question

My friend has a little nest egg from the sale of her home. She is risk-averse but wants a greater rate of return than from CDs in which she is currently investing. What would you suggest?

Answer 1

Ingdirect has an account called Electric orange that gives 3% and above currently. It is tiered by the balance.

It is also FDIC insured but then again with only 53 billions in FDIC funds and Indymac alone taking 8 billions in California, I dont think it matters any longer if it is FDIC insured or not. The government does not have enough money reserved to insure all banks (7 trillion dollars are supposed to be insured....with only 53 billions minus 8 billions).

She can always try CDARS.

Any higher percentage, you may have to start delving into riskier ventures.

Good Luck

Answer 2

Make an appt. with a financial company.  Open a Mutual Fund acct, that is no load and let the professionals select the stock.  Every investment is not without risk.  Even CDs.  because the return on them is less than inflation, so in effect you are losing money.