So I had gathered a somewhat huge amount of money from my past savings and me being the forgetful being that I am I forgot that I had a savings account and now it's teeming with my savings. Then it led me to wonder, "What am I supposed to do with those money?" so the first thing that came into my mind was to invest on something but I have no idea how or what to invest on. Any suggestions?
You should try to look for the least risk investments possible. A simple CD or another solution offered in your bank may be worthwhile but much more interest/revenue can be gained from joining an ETF or other sort of Index fund. There are big name ones that guarantee a certain return/yield. I do not want to make any financial recommendations as I am not a professional but definitely look into low-risk/high yield investments such as a mutual fund.
I would do some research about investing first. Once you gather all the information that you need, then I would search for the best thing to invest in, but make sure it is something that you are interested in. I seriously would not invest in the first thing I see. Once you find a product that interest you then I would gather some information on it to see how well it is selling. Then I would make my decision.
Generally speaking, cash in a savings account will continue to lose value if you do nothing with it. 20 years ago $10000 was worth much more than today. So you need to try and offset this by investing. Some ways to do this is to deposit the money where it can earn interest, buy shares, invest in property, government bonds, or buy items that will increase in value over time.
I would say invest in something that is worth investing in . Do your research and make sure your doing something that gonna make you money. I would say look around in your area and see what needed and go from there. When I got my lump sum of money I opened a washerteria people say its a lot of maintenance work but it brings in good income for me and my family cause it was a high demand in my area.
I'm not a accountant by any means but I would seriously do my research. You want to put your money somewhere where you can earn off what you've got saved. An interest earning savings account would be a good start. Maybe open a retirement account and put a percentage of your money in that. You could also invest in stocks and/or CDs. Just do your research before taking the plunge.
Personally, I would invest in gold, as it's value keeps increasing. I invested in gold 20 years ago and, needless to say, that it was a good choice. But before you invest in anything at all, I would recommend that you do some thorough research and also ask professionals for advice. Buying gold coins and bars, has been very lucrative for me over the years. Good luck with your investments.
You should read and research about investments. Get hold of books like 'Rich dad Poor dad', read them and try to apply them in real life. I would surely help you. Alternatively, you can try low risk investments like mutual funds. Real estate is a good option but needs a bit of research first.
Protect yourself first and buy an affordable insurance. You may also want to check some investment linked insurance as an option. Then, you may decide to invest it in a business that you know how best to handle or you may also consider investing it in the stock or money market. Caution though, I do not advice you to just get in to any investment scheme that you are not familiar with so make sure to also invest some of your time in learning about it.
Start with short term investments that would motivate you to invest more. Government bonds probably are the safest kind of investments and they pay a good interest rate. After a year or two you could get into stock trading. Invest a little money at first and learn the ropes before you start putting in more money. There's money to be made in the stock market though there are risks involved too which is why you should pick the stocks you buy carefully.
I hear gold, I heard government bonds, I hear shares, I hear EFT's, but, what about starting your very own business, I mean, that's the best you can get, imagine if you started your own company and in 5 years or so it becomes very successful. You see the difference? When you invest in other things, you are really just investing in another person's business. I am always the type of person to think creatively and go ahead with my own plans, start a business and watch it grow! but be careful who you let work for you, there are some really crafty people in this world, and they will wreck a good thing, keep them far off! All the best!
It would depend on if I had an emergency or contingency fund. I think it's wise to keep at least 6 months worth of income in a savings accounts for emergencies. If I did have an emergency account then I would invest in a short term CD until I did my research. I like index funds. So I would look for index funds that have beaten the market with the lowest fees.
I think that just jumping into investing (if that's what you want to do) wouldn't be very wise. Investing is something that has to be researched, so that you don't end up just throwing your money away. You've had that money for a little too long to just throw it away. Make sure you are investing in something that is profitable, and something that you can see yourself believing in five years from now.
What to do with your savings depends on the type of financial situation you are in right now. Assuming you have no unsecured debt (credit cards and that sort of thing), I would encourage you to fund an emergency account with 3-6 months worth of your normal income. Put it in a CD or money market account where you could get to the money if you became disabled or laid off from your job. Another suggestion would be to leave some of it in the savings account and use the rest to buy gold or silver. Silver is my personal preference because it has a lower cost. Right now, you can buy a 1 ounce silver coin for around $24. These coins are very easy to sell in the event of an emergency. If you are interested in learning more about investing in silver or gold coins, there are several reputable companies that can help you in this regard. Congratulations on the savings!
