If I have $10,000 to invest in a CD or Savings bond, is it better to invest using one $10,000 or 10 $1000?
99244
Usually you will get a higher interest rate with the larger CD, however unforseen circumstances could cost you alot more. If it were me I would invest it in one $5,000 CD and two $2,000 CD's and one $1,000 CD. This will allow you a better return while also allowing you the chance to withdraw early with minimal damage should you find yourself in a situation where you need the money. (If you need a K note then cash a K note, 2K then cash a 2K ect....)
25007
It naturally depends on what your starting capital is - and what your investment horizon is. Thus if you already have $1mn in the bank, and you leave it in a check account which yields 1% p.a., then after one year the bank will add $10,000 to your account :)
922982
HaHa, you'll be lucky.  A small amount like that will earn you almost nothing in any building society or bank.  If its money you dont actually need to live on you'd be better off buying a few premium bonds.  At least with those, even though the chances are millions to one, you might just get something back if your number comes up. But as for any bank or society increasing profit on your investment, you chances of living to 150 are higher!! Sorry but thats how banks make a profit.
677792
investing your money. You can do that 10 dollars at a time. Contact Scottrade or ETrade for starters.
505722
Hello, \n\nThe difference between a money market account and a certificate of Deposit is that a CD is held with a bank, and a money market is held typically with an insurance company or a brokerage house, but can also be offered through a bank.\n\nCDs typically have a "negotiation" factor built in so that depending on the capital you have to start with and the time you want to leave it with the bank, that will determine the interest rate youare paid. As a result, you will also typically lose 3 months of interest if you cash out before your CD has matured. So for example, if you have $10,000 to invest, a bank may pay you 3% if you leave it with them for 18 months. If you wanted to leave it there for 5 years, they may pay you 5% annually. If you cash out early they may charge you penalties which normally amounts to a chargeback of some of the interest.\n\nA money market account is regarded as a place to store your money until you decide what you want to invest in. Think of it as a "holding tank". Many brokerages will allow you to write checks against it, and there are no early withdrawal penalties or interest chargebacks for taking any money out. Consequently, the rates are not typically negotiable. They will usually pay higher than a savings account will, and are sometimes offered as an alternative.\n\nNeither are considered ideal long term savings vehicles, because after paying tax on interest gain and the low interest rates paid, it is difficult to outpace inflation long term. They are idea for short term investing needs. \n\nWhich is better? It depends on your need to liquidate the account. Money markets are easier to withdrawal against. CD's can pay a higher rate of interest if you lock it up for a few years.
79885
It depends on how long you can leave your money invested. The higher the returns you seek, the more risk of short term losses you are going to need to accept. If you do not have a long time to stay invested you need to pick more conservative investments. Over the long term, the highest returns are earned by stocks, with small company stocks edging out larger company stocks. Bonds will typically give you lower rates of return than stocks, but less unpredictability. CD's and money markets are at the low end return-wise, but have virtually no chance to losing value.\n\nSeek the advice of a financial planner. Have him/her help you complete a Risk Tolerance Analysis. The results of this analysis will guide you to the proper mix of assets for your particular savings goal.
95304
As stated, it depends on your age and your tolerance for risk. Savings bonds are guaranteed by the US Government, but only return about 4-6% per year, depending on the bond type. There are very safe mutual funds that allow you to invest over time (like bonds), but that will return a better percentage than savings bonds, which are the most conservative. Even mature people should not be investing "large" amounts of money in savings bonds, because there is a holding period. If you take the money out too soon, you pay a penalty (lose interest). Plus the returns are not that great.\n\nLastly, expecting that savings bonds will create the money you WILL need in retirement is unrealistic. You need to fund a 401(k) where you work, buy some stocks and mutual funds, then you can add some bonds. Diversification is the secret.
42689
The 401k is great if the employer provides some kind of match.  If you are looking to buy some government bonds, I would go with the I bond which currently has an interest rate of 6.73%\nCheck out http://www.treasurydirect.gov for more info.
658613
There isn't one.  Any investment promising that kind of return is either lying or so risky that you are much more likely to turn your $1000 into $1.50.  You don't get something for nothing.
307325
A "CD" is a Certificate of Deposit.  It amounts to a promise by a bank that if you give them a certain amount of money, they will give you back a little more after an agreed-upon amount of time.  You can get your money back sooner, but there's usually a penalty/loss of interest.\n\nAn example might be a 12-month CD paying 6% interest. If you buy one for $100 on Jan 1 of this year, it "matures" or becomes payable next Jan 1, and will pay you back $106. (Party!)\n\nCD's are generally a very safe, very low-yielding form of saving, most appropriate for people who cannot tolerate a lot of risk with their savings.
12817
It depends on how old you are.  Most retirement plans depend on the economic conditions at the time of retirement.  One person can take their 401k out this year and might get more money then the person taking it out the year after.  See, its all economics.  On top of the economics, its what you invest in.  When you put money in a 401k, you have experts putting it into mutual funds for you.  They take alot from you.  So, theoretically, you can buy your own stocks and make a heck of a lot more.  And instead of investing in them for 45 years, you can invest for 8 years and make the same amount or more.  This is true, however, you dont know what to invest in.  So, I suggest you start small and on something a bit more safe.  I will show you 2 or 3 of the best ways to do this.  I am a rare coin expert.  These ways are not fool proof because the economy goes up and down in a cycle of booms and busts.  But, they do cut out the risk because you only have 10 years left.  \nThe first method is through gold.  I suggest you buy the physical form and not stocks or anything of that nature.  You can buy the physical form and allow the sellers to store it for you.  Do not allow them to store it for you if they are just a small company.  I would rather take the physical gold with me.  There is a fee to take this gold with you though.  But, its better then not having it.  With gold, its always hovering at about $278 to about $315.  I would say that anything less then $290 is a good buy.  When you buy, they always tack on an additional couple of dollars because the gold was assayed into a gold bar for you.  When gold is high, they add like $4.  When it is low, they might add $7 dollars.  Dont worry about this.  Just pay for it.  I would rather buy bullion coins then the gold bars in the packages.  They cost $10 dollars above the gold value in the bar form.  Now, there are certain gold bullion coins that you should and shouldnt buy.  Its always best to go for the pure gold ones.  The reason being is, sometimes a jewelry store will take it in, but they will only pay for its content because they were going to melt it anyways.  And if it wasnt pure 24k, then they might have to take a couple dollars off to turn it into 18k or 14k, etc etc.  So, the purest ones are the Canadian gold coins, and the Chinese gold coins.  When gold goes down, you buy, when they go up, you sell.  Its that simple.  You cant lose because gold goes up and down all the time.  So, dont sell if you lose.  Just keep it there.  Whats the point of saving if you are going to dip into it?  So, over the course of 10 years, I know you can make a sizeable profit.  The question is large or small because you will not know when to buy and sell.  All you see is a profit when you sell, and you see a cheap price when you buy.  What you do is buy when its around $290 or less.  Sell, when it goes up.  And with the excess, you can buy more gold.  Just continue doing this.  I know for a fact that you can start off with $3000 dollars today and make at least 20 trades in the next 10 years and make no less then 100% of your investment back.  Gold is currently at $500 plus.  What if you bought it when it was $290 or less, which is what is preferred.  Thats over 200 per ounce.  So, in a year or two, do you see that you would have had over 5k?  You just have to wait till it goes down to around the 300 mark.  I mean, even if you buy for 290, and it goes up to 310 in 2 weeks, you can still sell and make 300 dollars.  That would add almost another ounce to your portfolio.  Continue to do this until you are about to retire.  During the last year, you will be waiting for the highest price you can find to sell.  Another thing to look into is instead of gold coins, you can buy grain gold.  They are just little balls of pure gold.  They are usually a couple dollars cheaper, but they are hard to obtain sometimes.  \nSecond way of investing is buying coins from the US mint.  They will be the cheapest price you pa
13054
When you invest it's always best to use the maximum amout of leverage to obtain the maximum return. Investment debt (as long as your tenants are paying for it) is good debt. \n\nExample: You buy a $100,000 home with $50,000 down and the property goes up in value by 10% in one year. Your ROI (return on investment) is 20%\n\nYou buy the same $100,000 home with $10,000 down and the property goes up in value by 10% in one year. Your ROI is 100%
974739
Bank CD's usually have a penalty for early withdrawal.  If you cash in a Tbill early, you might win or lose, depending on current interest rates.  There's also another commission to pay the broker when you sell the Tbill versus letting it mature.\n\nAs far as safety goes, Tbills are the safest but CD's are pretty close.  You also don't have to pay state income tax on Tbills.
906582
assume $Y grows at 10% every year. after 1year\ninterest=Y*(1.1^1)-Y\n\nSo after X years\ncompound interest= Y*(1.1^X)-Y\n\nan example: $1000 grows at 10% every year for 20 year will have compound interest of\n1000(1.1^20)-1000=$5727.5   ( as suppose to $2000 which is what you will have if you earn 10% every year but not compound)\n\nAnother one: $1000 grows at 15% every year for 20 year will have compound interest of\n1000(1.15^20)-1000=$15366   ( as suppose to $3000 which is what you will have if you earn 15% every year but not compound)\n\nenjoy
30187
Pay off those charges, especially if your interest rate is over 10%.  It's always good to have some money in savings, but if you want your money to go further, get rid of those charges, it's like paying a middleman for an item purchased for YEARS!!!
309989
You pay taxes on the interest you are paid by the bank, not on the money itself. If you have $1000 and get $20 in interest, you pay taxes on the $20. The tax on the $20 may be around $5, but you are still $15 ahead of where you would be if you put it in a safe box
1027829
A EE savings bond is an investment issued by the US Federal Govt. It is issued at a 50% discount to face value. What this means is that if you buy a $100 EE bond you will pay exactly $50. On the day that you purchase that bond it will have a fixed rate of interest. (You can ask the person who you buy it from what the rate is on that day.) There should never be any commission or fee to make this purchase so the 50% discount rule should be in effect for every purchase. To see when your bond will double,(reach face value), you will use the rule of 72. Divide 72 by whatever the interest rate is that you will receive. The result is the number of years it will take for your bond to reach face value. Ex. If the rate for a bond is 6% you would take \n72 / 6 = 12. It would take 12 years for your bond to reach face value (double). The bond will continue to accrue interest at the same rate for up to 30 years. After 30 years it will no longer accrue interest. The interest that you receive when you cash in a savings bond is taxable at the federal level but not the state. In  some cases if you use the savings bonds for higher education of a child it becomes tax free at the federal level as well. That's about all I know about EE bonds. You might also check into II bonds. They are inflation adjusted bonds that the government issues. The rates fluctuate with inflation. Because of this slightly higher risk, II bonds have a bit more growth potential. Good luck