The best ways to invest $5,000 now

You need to ask the right questions before you can select the right investment for your hard-earned money.

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254Comments
May 1, 2014 11:19AM
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Let's see........... More poor people than ever. Shrinking middle class.

 

Rich consumers are spending more on nice fun stuff.

Everyone else is spending more because groceries and all necessities have gone up.

 

What great economic news...... THANKS MSN FOR THE SPIN.... eat shlt.

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people have no disapline period.  Constantly blowing saveable cash on useless things.....control yourself....make a budget and stick to it. End of story.    I net less than 40k a  year...a few years 40 ,41......I drive cheap used cars, paid my house down from 30 yrs to 14 yrs  this year.....and managed to save in the 6 digits.  Its possible....people are  just so tuned into instant gratification and entitlement its sickening. 
May 1, 2014 1:04PM
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$ 5000 ? 
If you have debt, pay it down as far as you can. The less in interest you have to pay goes straight into your wallet.
Then after, open a savings account.
If you have all of that covered, then pop that into a IRA, preferably a Roth IRA.
 
May 3, 2014 12:55PM
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How about an article on how to invest the extra $5.00 I have after rent, car payments, insurance, food, utilities..just keepin it real MSN

Apr 30, 2014 7:51PM
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These types of articles should've been posted 6 yrs ago.  If ANY of these "experts" were really experts they would've been writing articles about how important it is to buy "when there's blood in the streets," and to not sell out.  Instead the "experts" panic'ed like the rest of us.
May 1, 2014 12:18PM
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Actually, I know a lot of people who have loads of credit card debt at over 15%APR and they are asking for advice on putting away money into IRAs, 529Ks for the kids, and opening up several financial accounts that have tricky fee schedules, and generally wanting to know how to invest "extra" money they think they have.  

Also, it annoys me to no end when I see financial articles telling the average person how to invest that extra 5K. The truth is due to lack of personal finance skills and a fair wage, many Americans can't meet basic living expenses, let alone anything left over for investing. Americans need to demand more for their money (don't go for the stupid made-for-TV product at 45 easy payments of 39.99!) and demand that raise you deserve, especially when you are certain you add value for your employer (how do you think employers have a huge surplus of money - because wages have stagnated while workers have brought in the big bucks for these employers). 

Investing the time in learning to create the best financial plan for yourself  will provide the guaranteed best rate of returns. I will give you a few pointers here and I think people should focus on the right personal financial priorities, not what's "the trend" financially. 

IN ORDER OF PRIORITY:
[1.] Make sure you have a catastrophic health plan (bare bones health plan) that is affordable, covers major medical costs, and prevents you from going bankrupt due to an illness. 
[2.] Pay down revolving (credit card) debt first, no matter the APR, but especially if it's not 0% for the life of the balance
[3.] Create an emergency fund (EF) of about 3x your NET monthly income. This will keep the bills paid in event of income interruption through job loss, unexpected expenses like a leaking roof, moving expenses if you rent, vehicle problems, etc. 
[3.] NEVER finance a large debt for  something that depreciates (loses) value over time. For most people, this means don't get a 40K new vehicle just because you're approved for financing 36K of that 40K cost. It's just irresponsible and you cannot afford. Get a pre-owned at a fraction of that cost, and saving up a larger down-payment beforehand, as well as seeking financing from a bank with a pre-approval before you step foot in a dealership is best. 
[4.]  Identify and properly understand your payroll deductions. A lot of people have a bunch of things they get deducted that they never use, especially if you work for a large company that has all kinds of programs that HR likes to enroll you in. Also, update your W4 form (withholdings) so that you are getting the maximum dollars in each paycheck to pay down your debt, instead of waiting for the large refund from income tax filing. Why give the government a huge tax free loan when you needed that money all year long? People often say, "well it's a way for me to save that money because if i got it back in each paycheck i'd waste it or there will be some expense that eats it" To this I say have some discipline and do the math to see how much you are paying extra in finance charges compared to if you had additional amount in your paycheck to send a larger payment to the creditor.
[5.] Whatever is left over after taking care of the basic living expenses and after all credit card debts are paid in full, and your EF goal is achieved, then contribute to retirement, education or investment accounts (respectively: IRAs, 529ks, and brokerage accounts with mutual funds and stock options) If your job offers 401k matching, contribute only up to the % they match

May 11, 2014 1:48AM
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My grandmother, a Great Depression survivor, had some simple advice:

 

"If you want to double your money, fold it in half and stick it back in your wallet".

May 1, 2014 12:08PM
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Look up the Couch Potato investing portfolio. Low fee index funds. No fund manager in history has ever beaten it over the long term. Simply put, markets are more efficient than even the best stock pickers. If you call a financial advisor they will sell you an actively managed fund with sales charges, fund fees, and 12b-1 fees that will eat up your returns and make your advisor a healthy commission. Or worse, they'll convince you to buy into an annuity of some kind that makes them a huge commission and completely rips you off. Just trust the markets... your retired self will thank you.

May 6, 2014 9:32AM
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Ignore the 5 K or 10 K baloney and concentrate on making each dollar count. Most people don't invest by the 4 or 5 figure amounts. The average person can scrap up $ 50 or $ 100 to invest. Don't swing for the fences. Life is a marathon, not a sprint. Small steady investments in solid index funds, roth iras, or Dividend Re-investment Plans will get you there. Investigate all these options.

The other posters are right of course. Get out of debt first. Put aside a few bucks in an emergency fund, something WILL go wrong, when it does you will be able to get through it. If you have a retirement fund at work, start putting in money......sign up today. Procrastination is your enemy, start today, right now. Stop reading this and start getting your life together. Empty that jar of pennies, get bills, go to the bank and pay off some of your credit card bill. Every step in the right direction helps.......and once you get started keep it going.....if you can see some progress it will make you feel like you're on the right track.....keep a chart and cross off your debts as you pay them off, and start a chart of how much you have in the bank or your investments.....it's amazing to see how starting with a couple of bucks can add up.....get going.....now!

May 1, 2014 12:40PM
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Probably guns and ammo...


I'd recommend a Ruger SR-762, 10/22, and a Gunsite Scout.  A couple of thousand rounds for each.

Buy Silver Eagles with the rest.

May 1, 2014 5:45PM
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If you do have that much to invest, check with someone who is smart enough to help you. One thing do not put the money in a bank, banks do not pay any interest on money these days..Our government wants to know why people dont

save...HaHaHa

May 1, 2014 3:52PM
May 1, 2014 3:44PM
May 1, 2014 8:50AM
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I would say find a way to make something good happen for yourself and spend it that way soon.... if you wait for Obama to make things better it will never happen, he works at making the American dollar worthless.
May 1, 2014 12:33PM
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If I had $5K to invest I'd probably faint.

That would mean I hit the end of the month before the end of my money.

May 18, 2014 3:51PM
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My wife and I, who are both in our sixties, have had our life savings looted and severely depleted in the Subprime Mortgages National Conspiracy and Looting. Our home if it could be sold in the still not recovered housing market has lost one third it's value. We are earning less then the real rate of inflation on savings and cannot risk earning more because we cannot afford risk. Unbeknown to us our savings were mostly in Mortgage backed securities with Fidelity when the bottom fell out of the scam. The fund manager tried every trick to keep us from getting out, it took our bank manager and our lawyer to get him to transfer the funds. I like many others, including foreign banks and countries no longer trust our economic system, Government and financials. What saving we have left, that we need to survive, we feel that it is under constant threat from inflation, identify theft, and our nation's worsening debt, mismanagement, organized and protected criminality. We worked and saved all of our productive lives, putting our trust in our government and financial institutions, we no longer have any faith in either. Our country is now lawless, broke and declining economically, morally, and civilly.
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Buy a half kilo of cocaine.  Banks are criminals, ceo's are criminals, hell MOST of the ruling class are criminals or inherited a fortune made by immoral, unethical and illegal activities... I can go on and on....

“A people that values its privileges above its principles soon loses both.”
-Dwight D. Eisenhower


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Index fund --only way to make 8%. U.S. Banks are criminal enterprises
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