Safest way to invest 100G besides 1% CDs that are FDIC?

peacock

Tue, Mar 15 2016, 7:59 pm

Generally investments are inherently risky.

Real estate investments especially, while considered safe, do still carry a risk (case in point, 2008).

The liquidity aspect makes the investment choices even more limited, as Govt' bonds are off the table.

Imho mutual funds with high cap, and bond-funds are generally the safest option with a quick cashout if needed.

That being said, and consultation with a financial advisor might benefit you, as this opinion as my own, and should be followed on without professional advice.

Tzdakah is always the best investment Smile

gp2.0

Tue, Mar 15 2016, 8:20 pm

Mutual funds. Roth IRA - you can anytime take out the amount you put in, no penalties, no fees, no taxes on the money you withdraw (because Roth IRA you're putting in post-tax money.) You can't access the interest/income until you retire, but the amount you put in is accessible any time.

I agree you should ask a financial advisor about all your options.

gp2.0

Tue, Mar 15 2016, 8:24 pm

Better explanation:

Quote:

Age 59 and under.
You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. However, you may have to pay taxes and penalties on earnings in your Roth IRA.

Withdrawals from a Roth IRA you've had less than five years.
If you take a distribution of Roth IRA earnings before you reach age 59½ and before the account is five years old, the earnings may be subject to taxes and penalties. You may be able to avoid penalties (but not taxes) in the following situations:
You use the withdrawal (up to a $10,000 lifetime maximum) to pay for a first-time home purchase.
You use the withdrawal to pay for qualified education expenses.

You're at least age 59½.
You become disabled or pass away.
You use the withdrawal to pay for unreimbursed medical expenses or health insurance if you’re unemployed.
The distribution is made in substantially equal periodic payments.

Withdrawals from a Roth IRA you've had more than five years.
If you’re under age 59½ and your Roth IRA has been open five years or more, your earnings will not be subject to taxes if you meet one of the following conditions:
You use the withdrawal (up to a $10,000 lifetime maximum) to pay for a first-time home purchase.
You use the withdrawal to pay for qualified education expenses.
You're at least age 59½.
You become disabled or pass away.
You use the withdrawal to pay for unreimbursed medical expenses or health insurance if you’re unemployed.
The distribution is made in substantially equal periodic payments.

doctorima

Tue, Mar 15 2016, 9:51 pm

It depends on how much (if any) risk you're comfortable taking. If you want guaranteed returns with no downside risk, then your only choice is to shop around for the best CD or FDIC insured checking account (which can also pay a little over 1%). If you're okay with a little bit of risk in exchange for larger potential gains, you could try a broad bond market mutual fund or ETF, such as from Vanguard or Blackrock.