drmatt's Avatar
drmatt 5
86 Asked
2579 Answered
835 Best
0
No one has voted on this question yet :(
2 years, 3 months ago

If my business has an extra $2K, what would be the best 1 year investment?

The non-profit that I run has an extra $2K. I've thought about putting it into a municipal bond for a year, but I was told that I would have to invest $50K for a muni (still checking on that).

What would be a good way to make some money on this $2K over the next year that is fairly safe (no stocks)?
Tip for best answer: M$3.00
Separate topics with commas, or by pressing return. Use the delete or backspace key to edit or remove existing topics.

You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.

M$

What is Your Answer?

0
0
0

4 Answers

0
opher's Avatar
opher | 2 years, 3 months ago
4
The standard disclosure - the following is intended for informational purposes only, and you should consult a professional financial adviser before making financial decisions.

All in all, $2k is not very much as far as investments go. If you want to make sure none of the principle can be lost, you should look into things such as high interest savings accounts (e.g. via Ing Direct, HSBC, etc.) or a Certificate of Deposit (CD). These have the advantage of being insured by the FDIC, and you know in advance exactly what interest you will get.

One step less safe, but still very safe is a bank money market account, which is still FDIC insured.

Next step, a money market fund from a respected mutual fund company such as T. Rowe Price, Vanguard, etc.

Finally, since you want to avoid anything involved in stocks, you could invest it in a bond mutual fund. Mutual funds provide you with active management to identify good opportunities, a high level of diversification, and convenience in investing and withdrawing the money. Keep in mind however that bond funds (as well as bonds) can lose value, if e.g. the market interest rates go up. Bonds are only guaranteed if the issuer does not default, and if you hold them to maturity. If you sell before maturity you could get back more or less than you invested.

You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.

M$

Report Abuse

Post Reply Cancel
0
parmamagoo's Avatar
parmamagoo | 2 years, 3 months ago
2
I would use the money for fund raising. Perhaps make use of one of the new mobile apps to get donations or build an enhancement to your existing site for the collection of donations.

You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.

M$

Report Abuse

Post Reply Cancel
0
catt969's Avatar
catt969 | 2 years, 3 months ago
3
I know that this is not what you are looking for and I almost did not submit an answer because of it. But if I had a business, and had an extra $2000 to invest, I would invest in my employees. Altogether $2000 is not a lot of money but if you invested in your employees, it is a guaranteed positive move. Although it is true that this type of investment will not make you money like a good stock tip, It will cause your employees to work harder and better thus giving you a better bottom line. Also by investing in your employees will give you some kind of tax credit when tax time comes around next year.
source(s):
personal opinion

You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.

M$
drmatt's Avatar
drmatt | 2 years, 3 months ago Report

@catt969: Seeing as though there are only three employees (one being me), I already "invest" in them. Also, this doesn't answer the financial question, but does answer a management question.

@opher: Yes... non-profits don't worry much (if at all) about tax benefits.

opher's Avatar
opher | 2 years, 3 months ago Report

I'm not sure a non-profit would get any further tax benefit, though higher employee retention and improved productivity could make this a reasonable move. However, the question seems to indicate @drmatt is seeking advice on possible financial investments.

catt969's Avatar
catt969 | 2 years, 3 months ago Report

yes I agree. that is why I almost didn't answer. but I did. forgive me. and good luck

Report Abuse

Post Reply Cancel
0
marisaupa's Avatar
marisaupa | 2 years, 3 months ago
3
$2000 is not a substantial amount of money when placed in an investment context. Couple that with the fact that your investment time window is short, one year, and that your risk threshold is low, and one must say that the most prudent way to put that money to use would not be through an investment vehicle.

What then could you do with those funds?

Consider pre-paying certain suppliers. If your non-profit has certain services for which you pay a monthly fee, find out if they offer discounts for paying several months in advance. Many do, such as, VoIP, cell service, broadband, etc. These discounts can sometimes be significant, 10%-33% off monthly rates. I can assure you that you will not find a traditional investment vehicle that will offer you the equivalence of what you would save in those discounts as premium on a rate of return.

Using this same "out of the box" mentality, you may want to consider paying for preventative maintenance on any equipment used by your organization. Preventative maintenance today can surely spare your non-profit from having to pay more later for repairs.

Without knowledge of specifics for your organization it is difficult to offer more detailed suggestions. Basically, look more towards leveraging your $2000 for the purpose of lowering expenses that you would normally incur during the course of the year. You will get more benefit out those funds that way than a one year, low risk investment vehicle.

You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.

M$

Report Abuse

Post Reply Cancel

Learn something new with our FREE educational apps!

Private lessons in the comfort of your own home. Get back in shape or finally pick up a guitar with our great experts guiding you the whole way!
Learn Guitar
Learn Hip Hop
Learn Pilates