Money Market or CD

[INDY GS]

I have a somewhat sizeable chunk of change that has been sitting in an interest bearing savings account for a short time, money that was given to me as a tax free gift from a relative (a very wise investor). Anyway, I spoke to him about the wisest way to invest the money so it doesn't just burn thru like other investments I have made. I could write a book called "How to turn $4,000 dollars into $400 in one simple step using E-trade".

So which would you choose: a CD or Money Market account? Both being safe ways of making a little money over the next year or two while we see what happens to the Stock Market.

Other suggestions? Also, hookers and blow have been considered, but really, I just hate the guilt I feel when i have to bury her in the desert when things get just a little too crazy. Also Ski quiver is kinda full.

[Fritz]

Which one has the better rate? Only difference is that MMA is more liquid right? Depends on how fast you would like to be able to jump on a more lucrative investment.

[INDY GS]

Yeah money market is more liquid, so if I needed cash or found something better, here are the current rates I am seeing.

for a MM account with $2,000 - $9,999K invested, you get: Annual Simple Dividend of 2.62% with an APY of 2.65%

on a CD of similar amount: Annual Simple Dividend of 5.06% and an APY of 5.25%

[Viva]

ING gives you 4.5% on an on-line savings account:

http://home.ingdirect.com/products/products.asp

CDs will give you up to about 5.5%, but the money's tied up for a period of time.

[Griz]

wine... good investment and utility. No joke, have a friend who's retirement will come almost exclusively from wine he bought by the case in the 80s for less than 10 bucks a bottle - now valued at 10-20xs that. Plus, you get to enjoy parts of your investment as you go. Not what to do with all your $, but perhaps some of it?

[Dudley]

Indy, depending on your income level place it in a money market and use it to fund a ROTH IRA. If you have an employee match on a 401K, do that to the max first, then fill the ROTH IRA up.

If you dont want the money tied up too long and you are looking for a "safer" bet that is still relatively liquid I would consider buying some closed end funds through your broker.... Putting "investments" into a money market or a CD is akin to tredding water, you wont make much progress one way or the other.

That being said, it's tough to make any rec. without knowing the whole story, so take it for what it is worth.

Good luck.... and I heard a rumor that while vacations may not be the best use of retirement funds, they are hella fun!

[daPig]

AmTrust Direct, currently is at 5.36% on a M.M.

http://www.amtrustdirect.com/

I have been happy with my account there

[Staggerwing]

If you trust the market in general, but not your ability to pick, and don't want management/broker fees, look at Exchange Traded Funds.

[Tony]

Neither.

Buy put options on margin for GOOG, GS and AAPL.

The market run has come to an end.

[Benny Profane]

C'mon, CD's and Money Markets are for rich people and retirees. The Roth Ira is a fine idea, with a mix of International stock funds and Bond funds.

[iceman]

I dunno, but I do know that Benny's sig should read "The hairy-handed gent who ran amuck in Kent".

Just sayin'.

[Benny Profane]

Is that what he says? jeez, time for a new sig........

[easyrdr]

If your're under 35, then I would go with and index fund/mutual fund or a Roth IRA. If your're over 40 then I would lean towards the type of stuff your're looking at now.