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25k where to invest. no debt/no student loans - Any 4% OR 5% returns out there?

aaba78 5,121 1,364 June 28, 2016 at 06:25 AM
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Last Edited by aaba78 June 28, 2016 at 08:30 AM
i basically have 25k to invest im pretty conservative and dont like too too much risk..some is okay..this is not an emergency fund so i can be without for a few years..whats the best place to put the funds..any ideas?

my current income covers all my expenses and then some.

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#2
Investing for a few years? Leave it in a savings account.

Saving for retirement? Buy and hold index funds for the long term. Max out the annual contribution limit for a Roth IRA then increase your 401k contributions and use this money to offset the reduction in income.
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#3
Few years - put in in the funds. Many recommends Vanguard funds.
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#4
go to vegas and put it all on black.
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#5
Quote from aaba78 View Post :
i basically have 25k to invest im pretty conservative and dont like too too much risk..some is okay..this is not an emergency fund so i can be without for a few years..whats the best place to put the funds..any ideas?

my current income covers all my expenses and then some.
Before considering anything else, make sure you're getting putting away enough in a 401-k (or equivalent) to get the maximum match from your employer.
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#6
Quote from BoscoBearbank View Post :
Before considering anything else, make sure you're getting putting away enough in a 401-k (or equivalent) to get the maximum match from your employer.
employer doesnt offer 401k...all good ideas except vegas .lol
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#7
Quote from dhc014 View Post :
Investing for a few years? Leave it in a savings account.

Saving for retirement? Buy and hold index funds for the long term. Max out the annual contribution limit for a Roth IRA then increase your 401k contributions and use this money to offset the reduction in income.
Another option for a few years would be a CD [ally.com]. Better rate than a savings account and still somewhat liquid.
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#8
Quote from aaba78 View Post :
employer doesnt offer 401k...all good ideas except vegas .lol
Do you have an IRA setup?
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#9
Quote from dukeblue219 View Post :
Do you have an IRA setup?
yes i rolled over an IRA from my previous job 40k is now 38k go figure market is down....its in various funds but im not too happy so far been six months i know its long term but still


but i cant touch that until im retired i was looking for something safer but still able to get access to few years if i need to.

the thought of investing in something that pays you a monthly income intrigues me even if its $50 bucks,treasury bonds?,but again not to knowledgeable on this stuff

been also reading about peer to peer lending..eg. lending club...but i dont quite understand and seems a little risky
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Last edited by aaba78 June 29, 2016 at 07:14 AM
#10
Are you looking to invest for retirement? What is your current age, if you don't mind?

Also in regards to your IRA.. I would not worry about it. The past 6 months haven't been good, but long term you will be fine.
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#11
Quote from aaba78 View Post :
i was looking for something safer but still able to get access to few years if i need to.

the thought of investing in something that pays you a monthly income intrigues me even if its $50 bucks,treasury bonds?
Something that pays monthly and is relatively-safe, but has potential for growth would be a dividend or utility index fund. You can expect between 2.5%-5% annual yield (pre-tax) on something like that. The utilities will be on the high-side but with less chance in principal growth, while a broad dividend-focused fund (or ETF) will have a little more growth potential.

You probably don't want to invest in individual treasury bonds (or any individual bond) at your level of funds, but there are plenty of bond funds you could consider. An intermediate-term corporate or municipal bond fund would be a reasonable choice.

Quote :
been also reading about peer to peer lending..eg. lending club...but i dont quite understand and seems a little risky
It is. I would not recommend this would a beginner, and there's been some uncertainty floating around about LC lately.
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#12
Quote from Arp590 View Post :
Are you looking to invest for retirement? What is your current age, if you don't mind?

Also in regards to your IRA.. I would not worry about it. The past 6 months haven't been good, but long term you will be fine.
im mid thirties not necessarily looking for retirement which is 25 years away but more like some short term stuff
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#13
do you any of you have any opinions about robinhood the app that lets you trade for free...ive heard good things about ETF funds that are tied to the index..again id have to research some more but welcome any input
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#14
Quote from dukeblue219 View Post :
It is. I would not recommend this would a beginner, and there's been some uncertainty floating around about LC lately.
LC isn't going anywhere. I agree it is not for a beginner but it does provide solid gains if you do it right. A lot of automated strategies out there now a days makes it even better. Plus the secondary market you can make a few extra %.
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#15
Quote from aaba78 View Post :
im mid thirties not necessarily looking for retirement which is 25 years away but more like some short term stuff
I am in a similar position with about similar money just sitting in a 1% savings account. I dont have an IRA but instead a contributing into a 457 account (7-8k a year). on top of my mandatory pension contributions.

Was thinking of just transferring around banks to maximize the bank open bonus but thats alot of work. Took some risks in the market and a starting hedge fund but that not fair well. Now i am more risk adverse.

I might just end up increasing my contributions to the 457 but I too am lookin for ideas for safe investments.
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