What’s the best way to invest $5K?
April 16, 2009 by How Savings Bonds Work
Filed under More Bonds Answers
Can you answer Young Chea’s question about Bonds?:
I want to make a safe investment with long-term growth. I’m looking into tax free municipal bonds, any other suggestions?
I already have some money invested into a mutual fund that has been doing pretty well, should I put more money on top of that?
Best High Yield Savings Accounts
I want to make a safe investment with long-term growth. I’m looking into tax free municipal bonds, any other suggestions?
I already have some money invested into a mutual fund that has been doing pretty well, should I put more money on top of that?
Best High Yield Savings Accounts
Bonds Feedback: I like what Buffett says one good idea a year.
I personally avoid the bond market because of how closely it is tied to the money supply. Find a stock you like. I’ve been watching the metal markets, lately and have been buying EGO as a supplement to some other investments. It is a stable company with a good reserve they are working on. price to production is at about $250/oz. I still feel metals will rally for sometime as the Chicoms have express an intent of of having 10% of their assets in Gold. if so, we are barely seeing the start of that rally. I think gold will hit the $1000 mark if not further by the end of the decade,
EGO is poised for good production figured well into the next decade. The reserves are paid for, all they do now is dig and smelt. Competition has a price per share, EGO at about $5.50 is a good value. Conservative estimates place the stock value at around $8.00.
Don’t place all your eggs in one basket. Look around, look at the future. What will people want in the next decade. A hot day traded stock is RTK, RTK is the vendor of a retro-fitting system to retrofit existing refineries to become GTL/CTL ready.. Coal to Liquid could well reduce if not eliminate US reliance on mideast oil, many feedstocks can be fed into the FT catylyst and produce fuels. It’s not solely for coal or Natural Gas. RTK is a good play, buy on lows, sell on highs and wait for another low to build your holdings.. RTK has a large float, which is a major drawback in my view. Right now I am out of it. Will wait until it hits below $3.00 again to buy. I like the technology I am just not sure yet if RTK will be the player.. They may wind up being a takeover target someday. Maybe Valero will buy the technology and incorporate it into their holdings. That’d be a marriage made in heaven.
RTK needs to stop the dilution.
Bonds Feedback: I suggest you to stay away from bonds.
I suggest ETFs.
Bonds Feedback: tax free municpals and long term growth are an oximoron. If you in fact are looking for long term growth, you will have to accept a little risk. There is zero growth in tax free municipals. In fact with inflation at 3% and munis paying 4.5% there is a very good chance that over the long term you will wind up loosing money as interest rates rise.
If all you are investing is 5k, your best bet is to invest in a mutual fund or maybe two mutual funds 2.5k in each. There are various mutual funds that over the long term have returned 13+%. Several that I particularly like are PENNX, a small cap fund. GAM, a closed end fund. SWZ another closed end fund. TDF another closed fund. And IIF another closed end fund. All have returned better than 13% annually. But all are subject to risk. PENNX perhaps has the best record in down markets. Another fund that has a very enviable record is Bruce Fund, much better than 13% annually.
Bonds Feedback: Look at conservative ETFs. My favorite is SDY. It’s comprised of companies that have raised their dividend every year for the past 25 years.