Advice on Investing Money

[Stuart and Katie 13]

I will be transferring a sizeable chunk of money into my fiancee's bank account in the very near future and as you can imagine I am keen to learn

of the low risk investment options available for this money to put down as a deposit for our first home at some point in the future.

I have done some research about the options but I would appreciate advice from you guys who have brought a fair bit of money to the US as to

how you invested it, and also the best websites on which to compare savings accounts/bonds etc

Thanks, Stuart

[christeen 966]

We found a competent financial planner (I interviewed a few, starting by going to my local bank as they work with investment brokers) and we found someone who understood exactly our investment needs and risk tolerance... Which i think is the MOST important thing... We now have a balance of mutual funds, tax free municipal bond funds and interest earning savings that fit our investment style and needs and a financial planner we trust. I would recommend to interview a few investment people in your area to find someone that really fits you... Also, be patient, keep in mind low-risk does not make huge profits...

[Nich-Nick 3,354]

Interest rates are low right now, so you won't get much on a money market savings accounts or CDs. But the good news is you can get low Interest rates on a mortgage. It depends on how long before you want the money.

Bonds and such are usually long term. Stocks are great for the long haul but risky if you don't have years to stay in and catch up if there is a big drop. I have a financial planner with Edward Jones, so do recommend that for your long term savings goals...like kid's going to college or your retirement. He is especially good and looks out for me. Not all are that good, even with a well known company.

I think you will get many opinions on this topic.

[Stuart and Katie 13]

We found a competent financial planner (I interviewed a few, starting by going to my local bank as they work with investment brokers) and we found someone who understood exactly our investment needs and risk tolerance... Which i think is the MOST important thing... We now have a balance of mutual funds, tax free municipal bond funds and interest earning savings that fit our investment style and needs and a financial planner we trust. I would recommend to interview a few investment people in your area to find someone that really fits you... Also, be patient, keep in mind low-risk does not make huge profits...

Thanks for your reply, your investments sound very similar to what I was considering after my research. I agree it is vital that any financial advisor must understand my needs of low risk but as high a ROI as possible. Can you tell me how does your financial planner acquire their fee do you pay them a flat rate or do they take a % on an investment?

Interest rates are low right now, so you won't get much on a money market savings accounts or CDs. But the good news is you can get low Interest rates on a mortgage. It depends on how long before you want the money.

Bonds and such are usually long term. Stocks are great for the long haul but risky if you don't have years to stay in and catch up if there is a big drop. I have a financial planner with Edward Jones, so do recommend that for your long term savings goals...like kid's going to college or your retirement. He is especially good and looks out for me. Not all are that good, even with a well known company.

I think you will get many opinions on this topic.

Thanks for your reply, I have seen people I know lose out on investing in stocks so it will always be a straight no to them. Bonds and savings accounts sound like the way to go, but as you have both advised we will find a financial planner.

Unfortunately it seems any further opinions were not forthcoming but I really appreciate the two I have received.

[Nich-Nick 3,354]

Thanks for your reply, I have seen people I know lose out on investing in stocks so it will always be a straight no to them. Bonds and savings accounts sound like the way to go, but as you have both advised we will find a financial planner.

Unfortunately it seems any further opinions were not forthcoming but I really appreciate the two I have received.

I have a balance of stocks and bonds. When the stock market and interest rates are up, bonds tend to go down and vice versa. So some in each helps you ride the economy better. The mutual funds many financial firms push are stock mixes, so while you don't own a specific company, you have a stake in many stocks.

I'm at an age where I have a conservative risk tolerance. I don't have decades of employment income yet to come in. I actually don't even work. But I still have stocks. It's not about the stock going up or down so much as the money generated from dividend paying stocks....companies that have paid dividends consistently for 50 years or more. Those dividends pay me $13k per year. The "safe" and much larger investments paid less than half of that in interest last year because interest rates are so low. Basically way more "safe" paid half of what a little "risky" paid. So don't close your mind completely to stocks for the long haul of 20-30 years down the road.

If you are wanting to buy a house within a year with that money, then parking it in an interest bearing account or short term certificate of deposit seems like what you want. Many bonds lock you in to a longer period of time until they mature. That way all your money is available when you find that perfect house within a few months.

[Stuart and Katie 13]

I have a balance of stocks and bonds. When the stock market and interest rates are up, bonds tend to go down and vice versa. So some in each helps you ride the economy better. The mutual funds many financial firms push are stock mixes, so while you don't own a specific company, you have a stake in many stocks.

I'm at an age where I have a conservative risk tolerance. I don't have decades of employment income yet to come in. I actually don't even work. But I still have stocks. It's not about the stock going up or down so much as the money generated from dividend paying stocks....companies that have paid dividends consistently for 50 years or more. Those dividends pay me $13k per year. The "safe" and much larger investments paid less than half of that in interest last year because interest rates are so low. Basically way more "safe" paid half of what a little "risky" paid. So don't close your mind completely to stocks for the long haul of 20-30 years down the road.

If you are wanting to buy a house within a year with that money, then parking it in an interest bearing account or short term certificate of deposit seems like what you want. Many bonds lock you in to a longer period of time until they mature. That way all your money is available when you find that perfect house within a few months.

OK thanks very much for your further info, I guess the combination of me being very wary of taking risks when it comes to my money and seeing people I know lose a hell of a lot has swayed my opinion. I will definitely consider them in the future then depending on what our financial planner might advise then.