you have $2,000 to invest. Now what?

Do you have your rainy day fund set up? I move for retirement funds.

 

Thanks for all the ideas everyone. I've had this "extra" money sitting in my gun safe for a couple years now not collecting interest or anything... Just sitting there. I've pulled money from it a few times to buy things we needed for the house but I always add back to it later.

I just thought that maybe I could invest it or put it in an account for a year or so and have it make a little money. Putting it into silver doesn't sound too bad, ill check into that. And I will also look at opening an IRA.

 

Horrible idea, PM's are not a smart investment. If you already have other investments in place, it's not a bad idea to keep a couple thousand in cash handy.

 

This.

$2k is not enough to do anything in the market that is worthwhile.
You can perhaps buy into a mutual fund so you get some protection with diversification, but 99 times out of 100, people put $2k into "a hot stock" and watch it turn into $1k in 3 months, then they sell and lose another block of commission, and what they move that $1k to end up taking, while the original stock turns around and had they left it alone, it would have been up to $4k.

CD rates are bad, but they are better than jumping into today's overinflated market with only $2k.

Opening an IRA could be the smartest thing to do with it. It comes off of your taxable income, so it'll save you as much as $800 on your taxes this year... just keep feeding money into the account up to your limit every year if you can afford it.

 

Roth IRA

 

I would invest half of it in low-risk mutual funds, and then take the other half over to your friend Asadullah, who works in, uh, securities.

 

What you should consider for an investment should be driven in large part by when you might need/want the money. This term will help define what investments are appropriate. E.g., (guidelines, not rules...)

- < year - savings account, MM
- 1-3 years - short term bonds
- 3-5 years - mid-term bonds
- > 5 years - stock, stock funds

Last thing you want is the stock market tanking when you need the money. Also money sitting in the mattress (gun safe...) for long periods of time is also a loss. But if an investment makes you nervous, chances are it's too risky for you, back off to something safer.

 

Get a gold claim and dredge the crap out of it

 

this. starting is clearly the hardest and biggest step/hurdle. all my friends that start, keep it up.

i vote you start. i havent, but we keep up with my wife's..i have other options going.

 

Buy stocks in Toyota......