Sunday, December 4, 2011

I have $25,000 on hand which i dont want to touch, what type of investment can you suggest that yields...?

highest of interest which i can withdraw on a monthly basis (interest withdrawal only). i am willing not to touch the $25,000 for up to 5 years. i only need to get the interest. What can you suggest? high-yield online savings? CD? time deposit? credit union deposit? Which one yields the highest interest? thank you|||Don't use CD's--the best ones are still offering lower rates than many money market funds and high yield savings accounts right now. Plus you won't be able to access the interest every month; you must wait until the end of the term to get back principal and interest. The best money market accounts and online savings accounts are offering over 5% interest right now.





I recommend Vanguard Prime Money Market Fund. There's a $3,000 minimum initial deposit, but they are paying 5.22%, one of the highest return rates available. Plus they have an outstanding reputation as a company. They are a consistently top rated money market fund by Money Magazine, Morningstar, and others because of their low fees and high rates.





You can go online and transfer money in and out of your checking account at any time (no penalties). You can set up your account to give you a fixed payment every month or to give you whatever your interest/dividend is every month. And you can change your distribution amount online at any time.|||dont touch$25,000 IT COUND BE BAD LYUCK.|||i own some land that seems to be doubling every 3 years or so





maybe buy a nice big piece of land, take loans against it to pay the taxes and for that interest money you want





say it doubles twice in 5 years, $100000 then, minus taxes, maybe 8000, minus whatever you take out





then sell it in 5 years if you have to|||$25K for best yield investment returns? Insurance is your top choice of investment.





Check with those reputated insurance companies.|||If you don't want to touch the money, but have access to it every month, I would recommend one of two options.





First are the online savings/money market accounts. My paypal account makes over 5% and gives me a monthly dividend in cash. This is the easiest and most liquid because if you HAVE to touch the money you can simply withdrawal it without penalty.





The second would be to set up a ladder CD system. Since you want to have access every month. Split the $25000 in to five deposits. Invest $5000 in a one month CD, $5000 in a two month CD, and so on until the last $5000 is placed in a 5 month CD. (longer times would be better but you want access monthly). A five month CD will give better interest than the others, so after each month when the CD matures, invest it back into a 5 month CD. This way you will always have a CD maturing every month, and after five months all of them will be earning the higher interest rate of a 5 month CD.





These are both extremely safe investment options (earning around 5%) that will allow for a fast liquidation and monthly access to the interest. There are much higher earning options out there, but these will be simple, effective, and safe.|||If you want guaranteed returns with penalty-free access to your money, look into high-yield on-line savings accounts like HSBC, ING, Citibank, Capital One, or Emigrant.|||You have a variety of choices, but whatever you choose should be paying at least 5%. Capital One has a money market account that pays 5.2% through Costco (which is only $40 to join if you're not already a member). So don't bother with CDs or anything else that doesn't pay at least 5%, since a money market is as flexible as can be.|||I would recommend equities/mutual funds (stock market mutual funds). They historically have a higher rate-of-return than any banking product (cd, moneymarket, savings). You can have the institution set up quarterly checks sent to you for any gains on your original investment. It tends to be riskier, but mutual funds can come both conservative and aggressive; conservative would still be earning a higher rate of return that bank products- typically somewhere around 8% compared to the measly 5% given by banks, currently.





The more aggressive are also riskier, but you reap the benefits- Keep in mind that you should educate yourself on what each specific mutual fund is investing in. Real Estate would not be a good market to enter at this time. Each mutual fund speciallizes in specific markets (int'l, domestic, real estate, treasury bonds... etc) .





Hope that helps|||go to www.bankrate.com and check out cd rates and money market rates

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