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Old 08-05-2007, 03:08 PM #1
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Good 5k mutual fund/investment?

I'm looking for a good place to invest $4,000-5,000. I currently have the money in a savings account but am looking to get it into somewhere where I will get better returns.
I don't really have a timeline for when I need to withdraw the money, so I could leave it in there for a long time. But it will be left in there at least 5 years, probably closer to 7.

So, are there any good mutual funds or other places to invest this money that will not be too risky? Thanks
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Old 08-05-2007, 04:22 PM #2
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You need to speak to an investment professional in your area. Nobody here can make an accurate recommendation for you.
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Old 08-05-2007, 06:37 PM #3
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check out www.americancentury.com or vanguard. Personally i'm in AC's Tweix fund and did really well last year, but the return this year ain't great, but its an income producing fund so I still have money coming in from that end.
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Old 08-05-2007, 06:42 PM #4
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Originally Posted by FalconMan281 View Post
check out www.americancentury.com or vanguard. Personally i'm in AC's Tweix fund and did really well last year, but the return this year ain't great, but its an income producing fund so I still have money coming in from that end.
You're completely missing any real factors to make a recommendation. Goals? Time frame? Risk Tolerance? Experience? Socially responsible fund? There are so many things that go into recommending a fund for someone.

Just because you own a fund doesn't mean it will fit anywhere near someone else's objective.
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Old 08-05-2007, 09:08 PM #5
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Define "too risky." What will you want the money for in 5-7 years time when you want access to it?
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Old 08-07-2007, 07:22 PM #6
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Define "too risky." What will you want the money for in 5-7 years time when you want access to it?
Basically I want too make as much money as I can over 5-7 years without a risk of losing money, or at least a very slim risk. And I don't want an investment that has a 20% ish or greater chance of getting bad returns.

If this was your money, and it was the majority of your money, where would you put it too keep it fairly safe but make the best returns over 7 years. Thats where I'm at.

And in 5-7 years I'll be a few years out of college, maybe looking for a house, etc. Or I could just leave it in there/ put it in a longer term fund.

Thanks for the help.
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Old 08-07-2007, 11:32 PM #7
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Originally Posted by cronnup View Post
Basically I want too make as much money as I can over 5-7 years without a risk of losing money, or at least a very slim risk. And I don't want an investment that has a 20% ish or greater chance of getting bad returns.

If this was your money, and it was the majority of your money, where would you put it too keep it fairly safe but make the best returns over 7 years. Thats where I'm at.

And in 5-7 years I'll be a few years out of college, maybe looking for a house, etc. Or I could just leave it in there/ put it in a longer term fund.

Thanks for the help.
VERY Slim to no risk of losing your money. Go with Government Bonds.
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Old 08-11-2007, 01:42 PM #8
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When looking to invest you have to make sure you have your goals very clearly defined before you go and put your money into an investment. Given that you would rather not lose any money I would say that your best bet is putting the money in US Treasury Notes which you can get at http://www.savingsbonds.gov If you want to take on more risk with the possibility of a greater return you will want to look at a ETF that tracks the broader market like SPY(moves equal to S&P 500) or QQQQ(consists of the top 100 large cap tech companies that trade on the NASDAQ). Historically the S&P 500 has given better returns than T-Bonds over a 30 year time but with equities anything can happen and you are not risk free. Given your time frame of 5-7 years and the fact that you do not want to take on large amounts of risk I would look into buying US Treasury Notes.

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Old 08-11-2007, 03:43 PM #9
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VERY Slim to no risk of losing your money. Go with Government Bonds.
Or even CD's. About the same risk factor and the same return.
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Old 08-19-2007, 11:20 PM #10
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Your better off with a CD than a goverment bonds. Ibonds/EE bonds rarely go over 4.5% There are many other options that often have 5-8% return rates yes there is always some risk, but a CD is the safest best bet for you.

I work for americanbond services. I would never advise someone to get a government bond.
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Old 08-20-2007, 12:05 AM #11
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5-year CDs
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Old 08-20-2007, 09:02 PM #12
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ya id just roll into the bank and ask them whats the best thing to do for you
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Old 08-20-2007, 10:03 PM #13
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Or even CD's. About the same risk factor and the same return.
But you trade an unequal amount of liquidity.
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Old 08-21-2007, 08:30 PM #14
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But you trade an unequal amount of liquidity.
Correct sir, and the original poster did not specify an actual 5 year time frame, only that 5 years is the absolute minimum he would keep it in there. I think a CD would be a bad choice.

Most likely, he would benefit from a market driven product and just slowly take withdrawals if he needed to when/if that time comes.

This if, of course, just an idea and we would need information that cannot be easily obtained over a message board to make any actual recommendations.
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Old 08-24-2007, 02:30 PM #15
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Government bonds don't offer that high of a return rate. 4.52 was last 6months on the Ibond and 3.74 is where they are at now for 6 more months. With 2500 dollars you can get a 5.0% CD no problem. Now, he doesn't have to put all the money into the same CD he can set them up to be 10 month CDs and have them offset or possibly do 3 CDs and offset them. Although you would gain more by having them done together. Meaning putting it all into one CD because the higher dollar amount will gain a better interest %.

I still think most mutal funds and stocks would offer a better investment over a 7 period than CD or Bond would. But stocks have risk, bonds generally don't. But historically the stockmarket has a better rate of return than other investments including property
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Old 08-24-2007, 09:30 PM #16
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Originally Posted by Carnagge View Post
Government bonds don't offer that high of a return rate. 4.52 was last 6months on the Ibond and 3.74 is where they are at now for 6 more months. With 2500 dollars you can get a 5.0% CD no problem. Now, he doesn't have to put all the money into the same CD he can set them up to be 10 month CDs and have them offset or possibly do 3 CDs and offset them. Although you would gain more by having them done together. Meaning putting it all into one CD because the higher dollar amount will gain a better interest %.

I still think most mutal funds and stocks would offer a better investment over a 7 period than CD or Bond would. But stocks have risk, bonds generally don't. But historically the stockmarket has a better rate of return than other investments including property
I really am to lazy to pick apart this post. I posted the reason why CD's are terrible. When you can get over 4% in a savings account why would you ever even buy a CD. You have almost zero liquidity and you are making slightly over inflation.

ugh. I quit.
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Old 08-25-2007, 10:55 AM #17
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You have almost zero liquidity and you are making slightly over inflation.
After taxes you are probably making less than inflation. Oppenheimer has an awesome return calculator for CD's going back like 20 years now. The best actual yield after taxes and inflation was 2.01%.

I spend more time during my day convincing people this than anything else...
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