OK my question is how I can make the most of the money I have. $ I have 10G and I would like to invest it for long term. The saving I have now they have cd raging from 3.75. For 6 months to 4.00 for up to 60 months. I mean I know that once I have it locked in a c.d. I will be locked in that one rate. On the other hand I am worried that if the interest rate happen to be increased, then I would end up losing money if I am leave it long term. I mean what the trend the rate? Does it have the tendency to fluctuate upward or downward? ( I mean I guess it depends on a lot of other factors) but would it be a mistake to invest it in a cd if I am getting 4% for 60 months? And how does the tax apply?? do I get tax from it?

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Originally Posted by gg23

ok my question is how i can make the most of the money i have. $ i have 10G and i would like to invest it for long term. the saving i have now they have cd raging from 3.75. for 6 months to 4.00 for up to 60 months. i mean i know that once i have it locked in a c.d. , i will be locked in that one rate. on the other hand i am worried that if the interest rate happen to be increased, then i would end up losing money if i am leave it long term. i mean what the trend the rate? does it have the tendency to fluctuate upward or downward? ( i mean i guess it depends on a lot of other factors) but would it be a mistake to invest it in a cd if i am getting 4% for 60 months? and how does the tax apply ???do i get tax from it?

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You should invest in a bunch of different financial vehicles. Don't just put the whole ten grand into one. Some investments can be risky, but they have a higher rate of return than the traditional cd and savings accounts. It is never too early to start a retirement fund. You should really be speaking with a financial advisor about this. Be very leary about anyone trying to entice you into their investments. Such as movies, music, new inventions, etc.

Good Luck

If youi are looking at this for a long term investment you should consider a mutal fund that is spread out over a wide group of investments.

CD seldon keep track with inflation. If you are looking for it as retirement income, even funding the max each year into a tax deffered plan

It depends on how long you are planning on investing the money for and how much risk you are willing to take.

Eg. If you are planning on leaving it for 5+ years and can tolerate market movements consider an index fund.

Mutual funds you should be careful of high fees

Different investments will be taxed differently.

As mentioned earlier a financial adviser will be most helpful.