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  #1  
Old 12-22-2005, 12:43 PM
unglee unglee is offline
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Default What would you with $20K?

I have about $20K I'm looking to put away somewhere relatively safely--don't want anything too volatile. Right now it's in a platinum savings account accrueing at a hefty 1%--what's a better alternative? Mutual funds? CD? I don't really need to touch the money.

Thanks for any and all help.
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  #2  
Old 12-22-2005, 02:45 PM
lastsamurai lastsamurai is offline
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Default Re: What would you with $20K?

I would put it all on New England this monday night football...

All kidding aside...It DEPENDS. what your risk factor is...what you are saving it for? (ie first time home buyer, kids college education, ect) your age, how discipline you are keeping track of your investment.
IF you are looking long term-5-10 + plus years look for a good GROWTH fund that only invests in US stocks. I'm not a firm believer in diversification.
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  #3  
Old 12-23-2005, 03:42 AM
unglee unglee is offline
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Default Re: What would you with $20K?

Thanks for the response.

I'm 25 yrs old, with no debt and no real "plan" for this money. I don't need to worry about anything like the kid's college education, certainly. I'm just in the fortunate situation of having this extra money, and wanted to know what some more seasoned investors would do with it in my situation. I've never invested before and was just hoping for some helpful pointers towards a relatively safe solution for my money.
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  #4  
Old 12-23-2005, 10:49 AM
Dan Mezick Dan Mezick is offline
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Default Re: What would you with $20K?

Spread in 2 or 3 sector ETFs that are moving. Metals, energy, Japan. Resist the urge to buy the overall US equities market right now.
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  #5  
Old 12-23-2005, 10:52 AM
Sniper Sniper is offline
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Default Re: What would you with $20K?

[ QUOTE ]
I'm 25 yrs old, with no debt and no real "plan" for this money.

[/ QUOTE ]

Well your first goal should be to "Create a Financial Plan"... and your first step toward achieving that goal should be to understand what a Financial Plan is and why its important. You can accomplish that by reading some books, and/or paying a visit to a Financial Planner.

[ QUOTE ]
I'm just in the fortunate situation of having this extra money, and wanted to know what some more seasoned investors would do with it in my situation.

[/ QUOTE ]

What a seasoned investor would do with their money wont help you, as you may have a very different risk/reward profile.

[ QUOTE ]
I've never invested before and was just hoping for some helpful pointers towards a relatively safe solution for my money.

[/ QUOTE ]

The safest most proactive step you can take beyond educating yourself, would be to open an Emigrantdirect or ING savings account... which would earn you about 4% on your money!

Once you have put together a financial plan and given consideration to your risk tolerance, then you could start allocating to other investments with potentially higher returns.
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  #6  
Old 12-23-2005, 11:06 AM
Dan Mezick Dan Mezick is offline
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Default Re: What would you with $20K?

excellent advice. Eventually a CFP will show up here offering his services, and do very well.
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  #7  
Old 12-27-2005, 04:35 PM
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Default Re: What would you with $20K?

Check out I-bonds, you can buy them online (treasurydirect.gov) and they are safe and return a decent interest rate, currently I think around 6.73 or so. Although that is adjusted every 6 months.
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  #8  
Old 12-25-2005, 07:20 AM
Acehawk74 Acehawk74 is offline
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Default Re: What would you with $20K?

[ QUOTE ]
I'm not a firm believer in diversification.

[/ QUOTE ]

Someone should teach you about systematic and unsystematic risk, and how diversification can eliminate the unsystematic risk in a portfolio. Just a thought.
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  #9  
Old 12-27-2005, 10:45 AM
gjpure gjpure is offline
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Default Re: What would you with $20K?

I work for a financial planner here in Michigan. I am not liscened to give specific advice, but I can tell you that you can do much better than CD's and savings accounts and still invest safely.

The decision on what to do with your money also depends on many various factors such as: other assets, taxes, age, income, goals, dreams, marital status, etc.

Our company's website is www.davidwhitefinancial.com

Give us a call if you are interested in more info.

-Glenn
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  #10  
Old 12-27-2005, 01:11 PM
Sniper Sniper is offline
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Default Re: What would you with $20K?

First, I fixed your link..

[ QUOTE ]
I can tell you that you can do much better than CD's and savings accounts and still invest safely.

[/ QUOTE ]

What other products would allow for a better than 4-5% guaranteed return, with essentially no downside risk?
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