What is the least amount of money needed to buy a CD or into a mutual fund to make it worth the effort?
by 
Simply99 -- Not a fan favorite.
ANSWERS: 5
-
A CD doesn't make much money but it is a very safe investment. Minimum to open is typically about $500.
-
A CD is safe in that if it bank issues (vs brokerage issued) it is insured by the FDIC and it will never be worth less in actual dollars. But if the return is 2% and inflation is 4% you are losing purchasing power. If you have to pay tax on it on top of that - you are actually losing money.
-
Archemedes said: "Give me a lever and I'll move the world", right? Well...what's "effort" to you, guy?! ;-)
-
Use the money to pay off debt and try not to incure credit card and other debt in the future... Open a line of credit on your home and use it to pay down your first mortgage... you still have it available to you on the line of credit. You would be amazed how and extra $500 or $1000 towards you mortgage will save you in the long run!!!
-
I would talk with the financial adviser at the Bank. There are several options. Your best bet is a short term, non locked interest CD.This CD will only let its interest rate drop so low, and then it has a cap, but it will go up to sometimes 5 1/2 percent. You can have the CD set up for a year, determine if the growth rate is sufficient and if so, you can reestablish it for another year. I do a $20.000.00 CD that way. A lot of times you can get guaranteed interest on your CD. Just check with the adviser at the bank.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC