I have some savings accounts, totaling just under 20K, that are maturing and looking for advice on how to invest them.
I am in a similar place and I'll share my findings. When your dealing with amounts under ~100K it can be very tricky how to go about investing if your not familiar with the offerings and types of investments.
Going to a commissioned based broker was a mistake that I made. I met the guy (they always try to meet you in person sort of like life insurance brokers, because they know that every minute they sit with you means the more money you will give them) and we discussed my plans and goals etc. The end result was the I invested in mutual funds and paid between 4.25 - 6% front load fees to get into those mutual funds when if I had known a little more I could have invested in funds at Vanguard with lower expense ratios for free. I take as my lesson learnt in investing. Never go with commission based financial advisors.
The option of paying someone based on AUM (assets under management) is also not an option since typically, they don't take accounts worth less than 100K.
The only options that remain are 1. Educating yourself and talking to friends who knows these things and 2. Talking to a financial advisors that is paid by the hour, where your best interest is in mind. I don't have any personal experience with the second option.
I did try to educate myself about investing and a great place to start is Vanguard since they have lots of video webinars and other helpful reading.
I would like to use this thread as a place for people to discuss investing ideas (buying securities - not real estate or other investments) and their personal portfolio since I'm sure there is much to learn from other people. If such a thread already exists, please point me to it.
I'll go first:
I have invested in the following:
Mutual Funds MFS Technology A (MTCAX)
Franklin Strategic Income A (FRSTX)
Franklin High Income A (FHAIX)
Franklin Flex Cap Growth A (FKCGX)
Vanguard International Growth Inv (VWIGX)
Vanguard Health Care Inv (VGHCX)
Vanguard Target Retirement 2055 Inv (VFFVX)
StocksCRM
APPL
This first 4 mutual funds (Franklin and MFS) was done with the above commission collecting broker, the other funds I invested in on my own later. I kind of got excited about investing and put a little everywhere without a goal and strategy, which I realize now was a mistake. Since I don't own a home yet, I hope to buy one in the next 4 - 10 years, the money I need for the down payment should be kept in a very conservative holdings, which right now is not the case. I think I need to switch over to bonds over the next few months, at least part of my portfolio.
I'm open if anyone has any ideas for suggestions.