Where do I invest this money?

I just sold a house and have $90K to invest. I'm in the military overseas and plan to use the money in 5 years when I retire when buying our retirement home. The question, of course, is how do I invest the money so it's there when I retire, plus some. CD rates are so low now, I cringe at the thought of putting it there, so I'd appreciate some other options.

Visit for Interesting information regarding Personal Finance, Marketing, Small Business etc. Stocks are shares of ownership in a company. You can buy shares through a brokerage at the price per share. Historically, the stock market has averaged annual returns per year of 11 percent. Of all the different types of investments, stocks will give you the most for your money. However, stocks can also be the most volatile. Risk and return go hand-in-hand. In the long run history has shown that financial markets recover, so stocks should be considered investments for the long run.

A mutual fund is a huge collected amount of money from a large group of investors that the mutual fund manager uses to buy lots of different stocks, bonds, and/or other assets that meet the company's investment criteria.

When you buy shares in the fund, you become a shareholder. When you give your money to the fund, you are giving your money to the expert money manager of the mutual fund.

Mutual funds give you diversification and expert money management which allows you to sit back and relax.

Your choice of whether to pick a stock or mutual fund, is based on comparing their risk, return, and their expenses. You should also look at the pros and cons of both mutual funds and stocks.

Mutual funds carry a low amount of risk. If you are a low risk taker, mutual funds may be for you. If you can't stand watching your money going up and down every day by large amounts, then invest in mutual funds. Why are mutual funds such safe and low risk investments? Because they diversify. They give your money a little taste of everything. The fund will invest your money in a number of different stocks in different industries. That way, a single company's depreciation can balance out with another company's appreciation.

Mutual funds are generally good investments for retiring, saving for college, or any other goal that needs time. If you have some money that you don't need anytime soon, and don't want to take too much risk or spend time tracking your investment, then invest your money into a mutual fund.