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Veteran Services: Finance Questions

Finances

You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.

Questions & Answers

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Financial Questions & Answers

Question:

What is the best way to invest $5,000 with the best interest rate and with who or what bank? – Dee

Answer:

We think it’s important to differentiate saving from investing. Both have a place in your overall financial strategy. For example, we think everyone should have an emergency or “rainy day” fund so that if life throws you a financial curveball you’ve got money to respond. This represents a savings strategy for which a high yield savings account or money market account would be an appropriate savings vehicle. So, if that’s the purpose of your $5,000, check around with a number of banks for the highest yielding account with no strings attached. On the other hand, if the money is targeted for longer term goals, you’ll have more options. If that’s the case you could include longer term Certificates of Deposit (CDs) or even mutual funds that invest in stocks, bonds, or a combination of both. Except for CDs and savings and money market accounts, these types of investments do not offer a set interest rate. You can actually experience both positive and negative returns. If you decide to go that route you should talk to a financial planner or adviser who can help you pick an appropriate investment. If you’re interested, give one of our advisers a call at 877-699-2654.