can anyone advise...

[patrick t. cakes]

on how to invest? i recently inherited a small sum of money ($2000)
and was thinking of investing. im looking for short term, 6 months to

one year investment with the most potential for profits. im not real familiar with investing but
would like to learn more, or be lead in the right direction. thanks in advance, p

[sharesunited]

1. That's not a big amount. And your risk tolerance is key.

The most potential for profits usually carries with it the most potential for losses.

What about a nice FDIC insured certificate of deposit?

[patrick t. cakes]

3. ill look into them.

its "free money" so to speak, so i thought id look into
some options. thanks

[A HERETIC I AM]

7. Is $30.80 a year a decent return for locking up $2000?

Because that is about all you can expect with a CD. Probably less.

Any rate higher than that is being offered by a bank desperate for money.

http://www.bankrate.com/funnel/cd-investments/cd-investment-results.aspx?local=false&tab=CD&prods=15&ic_id=CR_searchCDNational_cd_1yrCD_V1

[Kali]

8. I was checking that site out last week and there were a couple of regular savings accounts paying

more than the 12 month cds
still just pennies

[Kali]

2. pay off any debt you are carrying now

there isn't much of anything short term that is safe, or profitable - and reducing or eliminating debt is probably the best thing you can do right now. If you don't have any - congratulations! I don't really have any other advice.

[patrick t. cakes]

4. im $1000 in the hole right now, with steady income

but this might be the best advice, thanks

[gateley]

5. I agree with Kali -- ridding yourself of debt is the best "investment" you can

make.

With the other $1000, I agree about just putting it into a CD. It's not much, but it'll be something and since it's free money, you won't miss it.

But first get yourself out of that $1000 hole! :hi:

[sendero]

9. I third..

... that emotion.

I will go further and say IHMO, there are few options available for the small investor right now.

The stock market is a joke that could lose 20% of its value, or more, in a matter of days at any time.

Savings, such as CDs, are safe but they pay almost nothing. This unfortunate scenario is the result of the Fed's Zero Interest Rate Policy, which is a fancy stealth way of ripping off everyone with savings for the benefit of mostly the large banks.

Artificially low interest rates as Greenspan's Fed promulgated in the mid decade have a serious role in the current debacle. When rates are artificially low, it forces real investors (such as pension funds and the like, that have committed to making certain returns over long periods) to look for riskier and riskier "investments" in order to make a reasonable yield. Along came Mortgage Backed Securities and the rest is history.

The best thing to do right now is get out of debt. Our country, and in fact the world is not remotely done with the economic crisis.

[mikita]

10. +100 for everything you said n/t

[virgogal]

6. Tha paying off of debt is absolutely the best advice.

[CountAllVotes]

11. you might try an online bank with the extra $1,000.00

I have an account with American Express right now. It pays 1.3% and at least it is liquid. Not great but a lot better than the .44% my credit union is paying right now. :mad:

:kick:

[upi402]

12. Pay off debt. Saving 10% interest = MAKING 10% on your $1,000

Then fwiw, I bought physical gold coins to hold -just in case what is delayed eventually happens.


my .02