need financial advice

[luv1another]

ok I am going to have some money soon that I want to make grow about 5 thousand... what is your advice on what I should do with it? remember I live in australia. how do I make it grow without losing it?

[SteveF]

It's not easy. For example, you could try playing the markets but:

a) this isn't likely to be a short term thing
b) you should only ever use money you are prepared to lose
c) the world markets are somewhat flaky at the moment - this creates opportunities, but also heightens risk (from what I know)

I'd therefore think very carefully about choosing this particular option. Away from this, banks offer high interest savings accounts - that won't gain you as much as you hope, but they are good places to keep money in. At the moment I get around $120 (Aussie) per month interest - thats from a fair bit in savings, but it goes to show that a fair amount can be accrued.

Best thing to do is to go and have a chat with a financial advisor at the bank.

[luv1another]

thanks steve... do you think I could take say 1k and play with it in shares or something? I havnt had anything to do with shares etc and being on my own with 3 kids I don't want to lose everything but I also want to have a go at making money too

[Jnthn]

Talk to your bank branch. I'm sure they have financial advisers. They may be able to point you to an investment package that doesn't risk your capital.

J

[Jimmy Higgins]

Step One: And this is the most critical step... don't look for financial advice at a web board.

Go get professional help if you want to increase your money.

[luv1another]

hmm ok Jimmy thanks...meh I just wanted some opinions

[SpinyNorman]

I wish I could help you but I have all the financial savvy of a dung beetle.

I agree with Jimmy and others that seeking professional advice is the safest way to go.

[Littlejoe]

Risk / reward is always the tricky part. The higher the potential reward, the greater the risk. The safest place is the bank savings account (at least here in the U.S. because there is some federal guarantee's). Here in the U.S. we have things called CD's that usually have a higher yield than the saving accounts, but tie your money up for a specified time, so there is not easy access to it.

So you have to decide how much risk you are willing to stand vs potential reward. As a general rule, mutual funds (again here in the U.S.) are safer but by no means risk free (as if there is such a thing) than individual shares because they spread the risk across multiple companies shares. There's the thing about putting all your eggs in one basket...as the old adage goes.

LJ

[Conductor42]

If you want something 100% secure ask your bank about what types of CDs they offer

[Teallaura]

In the for what it's worth column my non-expert advice is to park it in a CD (Certificate of Deposit) while you consult an adviser. In the US CD's can be as short term as six months which gives you time to sort out all the advice you get and to make your decision.

[luv1another]

yeah thats a good idea over here I think they are called term deposits tho