Question for the Money Doctors
Question submitted on Mar 24, 2013.
QuestionI have about $75,000 in my savings account from some inheritances I received when my parents passed away. My current interest rate only earns me about $550 per year. Is there any low risk (safe) accounts I should put this money into that will earn me some interest? I looked into CD''s but there isn''t much for great rates right now.
Typically greater returns come with greater risk. Without knowing a little more about your specific financial needs and goals it is difficult to help you make investment choices. Will you need this money for your own retirement? Do you have children or grandchildren that you want to help financially? Should you pay off debts?These are some of the questions that should be answered before considering what investments would be appropriate for you.
Other things that you should consider are not only your risk tolerance, but also your time horizon. When will you need this money. If you have a longer time horizon, you can take a little more risk. If you will need the money within the next few years, you will need to stay in a shorter term investment to make certain the money is available when you need it.
It would also be helpful to know what other investment assets you have and how are they allocated.You might want to visit our website.The website has good information on investing basics. Perhaps you should review this information and then visit with your financial advisor and discuss your specific situation.
For additional information visit http://www.360financialliteracy.org/