What to do...What to do..with $1000?
A couple of days ago I had a conversation with an attractive lady about investing. A relative of hers passed away and left her $1,000 (Not Bad). Anyway, she came to me and ask what would be the proper investment that she could tackle and get the best return.
I first had to figure out what type of person she is, meaning is she a person that very conservative or a person that doesn't mine taking a risk. The reason being is because she could have did a direct investment with one stock that she has confidence in or buy a mutual fund, the conservative approach. I also found out that she is an economist major, so she should know a little about the market.
I gave her some options, first one was to open a Roth IRA and the other was to open a ING Direct savings account. I told her she doesn't have to put the $1,000 in to those accounts, but they are essential accounts that she'll need regardless of what she does with the money. For those who don't know, the Roth IRA is a retirement fund and the ING Direct is a online savings account that has one of the highest yields in the U.S.
The conversation was going well, but I may have scared her with it because I was giving her a lot of options. And, I think she was just scared because she didn't want to loose any value in the money. She wanted to see a return in 10 years, so I suggested a mutual fund because it's an conservative approach and most likely in 10 years she'll have a good return.
As the conversation ended she decided to put it in to her Wilmington Trust savings account, which I believe has a lower interest rate than ING Direct. So, I guess we'll see what happens in a few weeks if she takes my advice or just leave it as is. Which I notice with a lot of young people. You tell them what to do with money, but they don't never do it. They act like they're interested, but the actions say something else. Like I said, we'll see what happens.
I first had to figure out what type of person she is, meaning is she a person that very conservative or a person that doesn't mine taking a risk. The reason being is because she could have did a direct investment with one stock that she has confidence in or buy a mutual fund, the conservative approach. I also found out that she is an economist major, so she should know a little about the market.
I gave her some options, first one was to open a Roth IRA and the other was to open a ING Direct savings account. I told her she doesn't have to put the $1,000 in to those accounts, but they are essential accounts that she'll need regardless of what she does with the money. For those who don't know, the Roth IRA is a retirement fund and the ING Direct is a online savings account that has one of the highest yields in the U.S.
The conversation was going well, but I may have scared her with it because I was giving her a lot of options. And, I think she was just scared because she didn't want to loose any value in the money. She wanted to see a return in 10 years, so I suggested a mutual fund because it's an conservative approach and most likely in 10 years she'll have a good return.
As the conversation ended she decided to put it in to her Wilmington Trust savings account, which I believe has a lower interest rate than ING Direct. So, I guess we'll see what happens in a few weeks if she takes my advice or just leave it as is. Which I notice with a lot of young people. You tell them what to do with money, but they don't never do it. They act like they're interested, but the actions say something else. Like I said, we'll see what happens.
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