help me invest

[BT2]

i currently 20 and have 20k in a CD. it this smart? it expires in 4 months so what should i do with it then? i will definitely have another few dozen K by the end of the year.

i am looking for something with no risk.

[captZEEbo]

if you really want no risk a cd is okay. Although right now cd rates aren't that great and you can get about the same in just a high yield online savings account.

However, depending on your time horizons and need for the money, you might be better off with some broadly invested index funds.

[IdealFugacity]

Keep in mind that there are savings and checking accounts offering from 4-6% interest available. If you're earning anything below 5% at least put it into one of these accounts instead of a CD. No risk there.

Money market funds, such as VMMXX with is something like 5.11 or 5.2% would also be pretty damn close to no-risk. 'They' say that nobody has ever lost their principal in a money market fund, and I believe 'them'.

[IdealFugacity]

[ QUOTE ]
However, depending on your time horizons and need for the money, you might be better off with some broadly invested index funds.

[/ QUOTE ]

OP stated "no risk" and this does not meet the definition.

[Jeff W]

Vanguard Money Market Funds would be my choice.

[DcifrThs]

[ QUOTE ]
Vanguard Money Market Funds would be my choice.



[/ QUOTE ]

agreed, for the portion that would be "no risk."

but why not start a portfolio that would be the beginning of a retirement savings account?

do you really need all 32k-56k in a NO RISK account?

why not put the 20k you have in the CD now into the vanguard MM fund and then, with the rest, start a diversified portfolio?

the amount of money you want to invest in that portfolio can vary but you'll earn more than 5-7% in the long run and will behoove you more than putting all of your money into a money mkt fund.

Barron

[captZEEbo]

[ QUOTE ]
[ QUOTE ]
However, depending on your time horizons and need for the money, you might be better off with some broadly invested index funds.

[/ QUOTE ]

OP stated "no risk" and this does not meet the definition.

[/ QUOTE ]I agree, but I was trying to push him to take some risk. When I first started out investing I wanted 0% chance that I'd lose money. Once you start to understand the basics of the stock market better it doesn't make much sense (assuming long time horizons).

[DcifrThs]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
However, depending on your time horizons and need for the money, you might be better off with some broadly invested index funds.

[/ QUOTE ]

OP stated "no risk" and this does not meet the definition.

[/ QUOTE ]I agree, but I was trying to push him to take some risk. When I first started out investing I wanted 0% chance that I'd lose money. Once you start to understand the basics of the stock market better it doesn't make much sense (assuming long time horizons).

[/ QUOTE ]

especially if you invest in more than just equities.

Barron

[Bumfuzzled]

0 risk = 0 return once you factor in inflation. your best bet is good ol real estate

[DcifrThs]

[ QUOTE ]
0 risk = 0 return once you factor in inflation. your best bet is good ol real estate

[/ QUOTE ]

not true. on both counts.

Barron