I just received a bonus check from the company I work for. Does anyone have some good investment advice?
Posted by admin on May 30, 2009 · 6 Comments
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6 Responses to “I just received a bonus check from the company I work for. Does anyone have some good investment advice?”Speak Your Mind
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Congrats! I’d stick it in a savings account for now. Look through different investments. Determine your risk tolerance and your time horizon.
If you have a while before you need the money, consider a no load growth stock mutual fund or an index fund. You may even want to put that money towards a Roth IRA.
And according to how much it is, also consider a bank CD for some safety. Good luck!
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I’m sure everyone is going to give their two cents. Personally, if you don’t want to take a risk at the moment, then I’d invest it in a CD. They are getting pretty good yields compared to government bonds and on top of them they are insured by the government.
If you want to take some more risk, but safe compared to buying property or tech stocks I would invest in preferred stock of companies that have good reputations. For example, ING has a number of preferred stocks that pay high dividends (stock ticker ISF) – it is paying close to a 15% dividend at the moment but I think that it is a good investment.
investment advice
put some in a multi-sector bond fund such as lsbrx. you have the prospect of decent upside (more so than traditional bonds) with somewhat lower risk thank stocks
Online Trading For Financial Freedom
The stock market is still too volatile for anyone without experience, so I would suggest placing it in a bank term deposit. Although it will lock your money away for a period of time, you can get a reasonable interest return, with, at the moment, government guarantee. Also, if it’s locked away, you won’t be tempted to spend it.
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Pay off (or) reduce any DEBT that you do not receive a tax benefit from. i.e, credit cards, etc.
Once that is taken care of. Look at your investment accounts, and consider diversifying the taxation of those accounts. i.e, if you have a 401k, open a ROTH IRA if you qualify.
401k is TAX DEFFERRED, ROTH is TAX FREE.
Otherwise, I would use short-term investments. CD’s, AAA Bonds, T-Bills in the meantime.
Just my two cents.
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Spend it on a hooker. Get something for your money!