Please help me invest my 25k

[TTChamp]

Alright money guys, hook me up!

My wife is finishing school and starts a job next month. We have no debt aside from a car loan with about 7k to go over the next 2 years. I have about 25k in savings that I'm embarssed to say has just been sitting in a savings account for several years.


Here is some more background:

1. I can't forsee any serious need for acess to my savings until August of next year. At that point I will potentially be moving and buying a house so I want to have access to my savings in August.

2. As far as risk goes, I would be willing to make a riskier investment with 2-3k of this money, but for the most part I want to keep the principal (right one?) in tact.

3. I am lazy when it comes to managing my money so anything that would require more than weekly attention is undesirable.

4. I have separately set up a retirement savings plan.

5. Once my wife starts working, our income will be significantly more than our spending, so we should beable to save another 20k or so between now and August.

My question: what should I do with this money? Maybe a CD is the right answer?

Thanks for your help.

[GeorgeF]

eom

[Phogster]

if you open a CD, i wouldn't do more than 6 months. Interest rates are going up all the time.

but i suggest you look into index funds. they're relatively safer than any individual stock. i myself own SPY and QQQQ.

maybe do half CD / half stocks?

good luck.

[hedgeyerbets]

I don't think that there is any case (under current conditions for a rise in rates) to go with a CD and maybe 40 bps of extra yield over one of the internet savings accounts (eg emigrant-direct) where you will earn around 4% to start with much greater liquidity.

[AceHigh]

[ QUOTE ]
Alright money guys, hook me up!

[/ QUOTE ]

Your young, be aggressive and by 60 shares of Google (GOOG).
/images/graemlins/cool.gif

[buffett]

[ QUOTE ]
buy 60 shares of Google

[/ QUOTE ]
Good grief, no. A stock can do anything in a 9 month period. Too risky.

[ QUOTE ]
half CD / half stocks?

[/ QUOTE ]
I don't like this either. The market can also do crazy things in 9 month periods. I agree with 'hyb' that the few extra bps won't be worth the loss of liquidity.

[ QUOTE ]
I would be willing to make a riskier investment with 2-3k of this money, but for the most part I want to keep the principal in tact.

[/ QUOTE ]
I say put 22-23k in high-yield savings, and do whatever you want with the 2-3k so long as you stay within your circle of competence. If you don't know how big your circle is, please don't buy any individual stocks. In that case, you probably shouldn't buy anything other than a broad market index fund (S&P500- or Wilshire5000-based) or an active fund managed by an Intelligent Investor.
Good luck.
-web

PS
[ QUOTE ]
I have separately set up a retirement savings plan....we should beable to save another 20k or so between now and August

[/ QUOTE ]
Well done on both of these.

[TTChamp]

Thanks for all the replies so far. One thing I should have added is that I am money illiterate. Sorry for all the noob questions, but can I get some clarification on this stuff? Thanks again for helping me out and putting up with my ignorance.

[ QUOTE ]
eom

[/ QUOTE ]

What does that mean?????? It's not the Stock Market forum equivalent of SIIHP I hope. /images/graemlins/grin.gif

[ QUOTE ]
if you open a CD, i wouldn't do more than 6 months. Interest rates are going up all the time.


[/ QUOTE ]

Sounds good. Is the best way to find a good CD to just search the web? Would I be screwing myself by just going to my bank and getting a CD?

[ QUOTE ]
I say put 22-23k in high-yield savings

[/ QUOTE ]
How does the rate in these accounts compare to CD's? What restrictions/penalties are there for getting money out?


As for going "all-in" on Google, I don't think I am prepared for the stress or the variance.

Thanks again for the help.

[Uglyowl]

[ QUOTE ]
eom

[/ QUOTE ]

Insured High interest bank account, like ING EOM

You had to read his subject.

[vindikation]

Here are the highest 6 month CD rates:Bankrate (http://www.bankrate.com/brm/rate/high_ratehome.asp?params=US,416&product=14)

I have an online Metlife Bank (http://www.metlifebank.com/index.do) Money Market account that has a 3.5% return, plus you can access your money at any time. There are higher return Money Market accounts, check the Bankrate web page.

This is a pretty good Mid Cap Blend index ETF that I have been looking at: MDY (http://finance.yahoo.com/q?s=MDY&d=t)

Good Luck!

[buffett]

EOM = End Of Message (nothing to do with finance)

those who fail to take risk will ultimately fail...by google...you will not lose money on it over the course of a couple years unless some major diaster happens in this world

[buffett]

[ QUOTE ]
you will not lose money on it

[/ QUOTE ] says the "20 year old college sophomore (http://www.m-w.com/dictionary/sophomoric)."

[DesertCat]

[ QUOTE ]
those who fail to take risk will ultimately fail...by google...you will not lose money on it over the course of a couple years unless some major diaster happens in this world

[/ QUOTE ]

Once again, if Google is so great why are the founders selling so much stock?

You might be too young to remember the internet bubble, but there were many stocks priced at high prices because they were going to be so much bigger in four years. The founders of those companies were selling stock too...