Investing $2-4k: what would YOU do? - PeachParts Mercedes-Benz Forum

cscmc1 · #1 02-20-2007, 05:23 PM

If you had $2-4K to put aside, what would you do? Let me set the stage, if you'll indulge me.

I am recently married, and I don't want to put (much of) this money so far "aside" that I can't get to it in case of emergency, but I would like to see it do more than the petty interest it'll get in a savings account. I already invest in a Roth IRA each month, and have a few bucks set aside for small emergencies, but I'd like to know that some will be available, too, if I need it. Are CDs worthwhile? Anything else that'll perform better than a savings account? What's the general consensus on Gov't bonds? If I could keep half of this money within emergency's reach I'd be happy... the rest I could do without for a while I suppose. Throw the extra at my Roth IRA?

Thanks in advance for any advice. I am aware that this is an odd request with potential risks, but I generally trust the judgement of many of the folks here. Of course, I will very thoroughly weigh the pros and cons of any suggestions before acting.

Botnst · #2 02-20-2007, 05:25 PM

Pay down debt.

B

cscmc1 · #3 02-20-2007, 05:29 PM

Quote:

Originally Posted by Botnst

Pay down debt.

B

Good point... I forgot to mention, everything's paid for (but we rent). That's another reason to have the $$$ available in the near future, as we may be looking to buy a home.

Botnst · #4 02-20-2007, 05:44 PM

Quote:

Originally Posted by cscmc1

Good point... I forgot to mention, everything's paid for (but we rent). That's another reason to have the $$$ available in the near future, as we may be looking to buy a home.

You're golden. Anything you invest in will be to the good. I am similarly situated (my only debt is my mortgage and the rate is so low and will be paid-off in 5 yrs, so it ain't worth paying down). I chose a money market account with Edward Jones. Yield has been better than inflation + taxes and it's easy to draw from, though not as easy as a passbook (I haven't drawn on the account so I cannot say for sure). Works for me.

B

raymr · #5 02-20-2007, 05:45 PM

Check into Vanguard mutual funds. They are kind of the McDonalds of the investing world with many fund choices.

dynalow · #6 02-20-2007, 06:40 PM

Consider the Roth. Roth withdrawals are investment principal first. Meaning, if you withdraw up to your original investment, there is no tax due. This would fit your desire to have them "nearby" just in case. And of course, there's the tax free buildup.
Where to invest is another matter. Vanguard TR Price, MSF, etc. Your choice. (not your local S&L though, please.

)

POS · #7 02-20-2007, 06:45 PM

Either pay down debt (the bad, high interest kind) or max out your IRA - always max out your IRA.

Wodnek · #8 02-20-2007, 06:46 PM

I would go in an index mutual fund. These mimic indexes such as S&P 500, or Dow Jones, etc. No active choices are made by the administrators. They only buy and sell to keep the percentages right. Choose an index you believe in. All the big fund families have these. Choose one that offers no load.

Mistress · #9 02-20-2007, 07:01 PM

I'd invest in silicone...

Wodnek · #10 02-20-2007, 07:08 PM

Quote:

Originally Posted by Mistress

I'd invest in silicone...

Do we get to review the before and after pics?

cscmc1 · #11 02-20-2007, 07:08 PM

Quote:

Originally Posted by Mistress

I'd invest in silicone...

I'm confused -- care to illustrate? I'm more of a visual learner.

cscmc1 · #12 02-20-2007, 07:09 PM

Quote:

Originally Posted by Wodnek

Do we get to review the before and after pics?

... pervert

BTW, Wodnek, I still drool over the pics of your 300D you sent. Still deciding what to do with the Saab and/or Mustang!

Kuan · #13 02-20-2007, 07:12 PM

If you've exhausted all tax "deferred" opportunities, consider a whole life policy. The returns are usually piss poor, but they have their upsides.

TheDon · #14 02-20-2007, 09:51 PM

can I get my GTI?

Hatterasguy · #15 02-20-2007, 10:01 PM

Buy gold and silver. You can just let it sit, and I have a feeling in the next 10 years its going to continue to rise against the dollar. I'm holding between 5%-10% of my assets in these two metals.

Or you could buy a 5 year CD. Another safe way to go is with an ING savings account, I think those pay about 5% these days.

Why not buy a house? Houses are about $100k-$150k in your neck of the woods right? $4k-$5k should be just enough to get yourself into one. 100% loan, seller pays closing costs, it can be done...I know people who do it all the time.