How to invest for dummies

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Forum -> Household Management -> Finances

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amother

Mistyrose

Sun, Feb 17 2019, 12:08 am

I have no idea how to invest.

Where can I invest $20,000 for the highest return?

I don’t want to lock it up for any stretch of time in case I need it.
( I am not nearing retirement age soon)

In only know about bank accounts/ savings, cd accounts

I know that capital one online banking has a higher interest rate than most other banks with their 360 account

I have heard so many terms but don’t understand what they mean
Money market
Ira
Ira Roth
Stocks
Vanguard

Looking for help before I put the money in a savings account.
Need step by step instructions

Thanks!!!

amother

Bronze

Sun, Feb 17 2019, 12:16 am

Try chase mutually fund. Open a chase account, sit down with a banker and tell him you want to open a mutual fund. He’ll ask how risky you’re ok with and explain it.. He’ll help you set it all up...

amother

Amethyst

Sun, Feb 17 2019, 12:24 am

There is lots and lots of information on Google. Why don't you read up on that, to get you started? If you don't think you understand what you're reading, you would probably be best off working with a financial planner. This is not the kind of thing you want to rely on random imamother members for.

amother

Sienna

Sun, Feb 17 2019, 12:31 am

amother wrote:

I was told that if youre not going to put money into an FDIC insured account, your money is safer in Mutual Funds with a fee for withdrawal (they have a name, I forgot the name), because people are hesitant to take their money out, so those Mutual Funds are more secure.

Id also ask people in the know (wealthy people) for who they use for Financial Advisor. Ive had relatives who lost big bucks by trusting the guys in the banks, who advise whats most profitable for them.

doctorima

Sun, Feb 17 2019, 7:40 am

Your best option is to invest in low-fee index funds from Vanguard, Fidelity, or Schwab, which are completely liquid (not tied up, you can withdraw at any time) and over time will typically make you a LOT more money than a savings account. You can do this yourself, but if it sounds overwhelming, feel free to PM me for a recommendation for an amazing investment advisor.

amother

Pewter

Sun, Feb 17 2019, 8:07 am

Agree that a low-cost index fund is your best bet. It's not guaranteed, but in the long run, that's the way to go. Google Vanguard and Charles Schwab.

amother

Coffee

Sun, Feb 17 2019, 10:58 am

There's a newish business magazine called the B-Tank magazine and it has fantastic, very easy to understand and very comprehensive personal finances articles. See if you can find any in your local supermarket. Worthy investment just for the financial articles.
The guy who writes them seems to be a down to earth, savvy financial planner.
I second that about trusting your bank. I did an IRA with Fidelity (which has an easy to navigate website). So far so happy.

forgetit

Sun, Feb 17 2019, 11:04 am

I think you should clarify for yourself what you want to see out of this investment. Is it just a safe place to put the money, or you actually want to see returns? If you want to see returns you gotta lock it up for some time. Mutual funds and ETA/stocks, etc. are not going to do much for you if you need it out soon. You may want to look into life insurance policies which have worked wonderfully for many ppl as you can borrow against the value of the policy. Its considered conservative, nice interest rate, safe, and you can take out money as a loan when needed (after your premiums are covered which may take time). This is a nutshell, so get the real details as there's a lot more.
There's a woman on LinkedIn who put her book onto a crowdfunding platform. Can't remember the name of the book, but its for small investments. Her name is Debbie Sassen. Maybe look her up. She seems very articulate and it might give you ideas.

ellacoe

Sun, Feb 17 2019, 11:08 am

There is a non profit organization called Savvy Ladies, that gives free financial and investment advice to women.
https://www.savvyladies.org

They have been very helpful to many women.

doctorima

Sun, Feb 17 2019, 11:39 am

Sorry, forgot to add when I responded earlier, but I would not go with the Chase banker. I think they will be focused on selling you expensive products with lots of commissions and fees that are in their best interest, but may not be disclosed to you except in the fine print.

If you're going to have a professional do it for you, choose a fee-only advisor who's only paid by you and who will give you advice that's in your best interest, not his.

amother

Smokey

Sun, Feb 17 2019, 3:50 pm

forgetit wrote:

Whole life policies are terrible for investment purposes.
The accumulated interest and cash value is not distributed to the beneficiary.
Yes, you can borrow against the cash value, but you have to repay it with interest, or they will deduct the borrowed amount of cash from the payout to the beneficiary.
Read up on what Dave Ramsey says about them.

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