If you had $5,000.00, what would be the best way to invest it?

Downpayment on real estate.

Stocks traditionally (over the past century) have had the highest returns of any investment instrument (bonds, money market etc..). People are reluctant to invest in stocks because they are volatile (move around a lot) but there is a way to get those stock like gains without much of the risk of holding an individual stock. Invest in an index fund, which is like a mutual fund except there is no investment manager trading in and out of it constantly charging you ridiculous commissions. An index fund is simply a copy of a group of stocks that investors use to gauge the market. For example you can buy an index fund that matches the S&P 500 etc.. Vanguard has some great funds with probably the lowest costs in the industry and has been around forever basically. I just brought VTSMX (total mkt index fund), its at 35/share and with one purchase I now have companies such as: Exxon , General Electric, Microsoft,Apple etc... For someone who can't afford to lose any investment capital this is by the far the easiest way to diversify risk without comprimising your returns. Good luck to you!

The bank is a good start. Put some money there. However, look for good mutual funds and EFT funds and other stocks. There are several promising stocks in the market that you should consider. One example is RIMM, which is soaring. I would focus your money, however, on cheaper stocks that have a soaring rate. Toyota too is also a good stock, though it is expensive. A great cheap stock is Intel, and all though it is not soaring, it is expected to rise around 10 or so dollars. Considering its only a 22 dollar stock, you can buy around 230 shares. With that 10 dollars, you will have gained 2300 dollars. So, Intel is your best bet, but also try investing in the bank as well.

The real question is how much risk can you tolerate.

Typically, the higher the interest, the greater the risk.

Mutual Funds will give you the best choice of balance.

Usually, that's a combination of Stocks & Bonds.

You need to talk to an investment counsellor.

Another issue, is the taxability implications.

Some investments can be tax sheltered.

One thing you have to consider is, what kind of risks you can tolerate for that 5000 dollars. You should be aware, more returns you expect, more risks you must assume. Conversely, less returns, less risks.

For example, you can invest it in money market account by many brokerage and you can expect to get 5% returns annually. You can invest it in common stock and you can expect anywere from 10 to 25% depending. BUT, with money market, you can be assured (to a reasonable degree), you will not end up with less money than you invested in. The most risks you might have is, you may not get 5%. With stock funds, you can lose 50% or more, should the market crash again. But, upward reward is definately higher than money market account.

Can you stand to lose 5000 dollars? Or do you have to at least get 5000 dollars a year from now? Also, what is your time horizon? Can you leave it in for few years or longer to ride out the ups and downs? Or do you need that money for something sooner than that?

It depends on if you have a time span that you have. Also, what do you plan on doing with it? If it's for college, then there are some options there. If you want to take a chance, then you can try investing in the stock market, but you run the risk of losing it. . . so it depends on a lot of factors.

I'd spend 2, 500 and invest the rest in hedge funds or bonds and stocks. Boeing and some chemical plant companies are a good choice.

I would invest in with me seriously. I could use it and probably make millions no gurantee but that its life. want to open a themed casino and need to build a prototype slot machine and more and more .... im going to put up a website email me if your interested.. im serious in fact the things i need are cheap so it probably isnt that much even not really sure though ... going to do it with you or without send ya a link to my site once its built...

if i had any where near that much money, i would buy a car that actually runs, or a down payment on a house instead of paying rent for the rest of my life. that is all i need for my son right now!!!!!!!!!!

High Interest CD or high interst savings account where u can supplement your income through their interest payments but i prefer the CD instead

HI

I would definitely go with a CD - I have a LOCAL invester - i put 5,000 AND IT IS A 3MO