Joe: Retired, living on 2 SS checks. No savings or real estate. Where is the best place to invest $5,000? Anyplace we can put $5,000?
Before determining where to invest your money, you need to determine what your time frame is for needing the funds and the amount of risk you are willing to take. No one but you can answer those questions. If this is for a “rainy day” fund, I would consider keeping the funds in a money market or CD. While the interest rate is low, the funds are more readily available and not subject to market fluctuations. There is still risk in that the return will most likely be less than the rate of inflation. You may also be able to use a deposit like this to get fee reductions from your bank. All banks are not the same, so shop around for the best interest rates, withdrawal terms, and fee structure. Typically if you are elderly and on a fixed income, it’s best not to assume a great deal of market risk. I would suggest would you look at mutual funds or other diversified financial instruments that best fit your desired level of risk and level of diversification (stocks, bonds, real estates, commodities, etc.). Study the historical returns, fees, and the investment portfolio of the fund before investing. If you are confused on this, it’s best to get advise from a certified financial planner.