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What is my level of risk? If very low, then I am better off with purchasing a certificate of deposit that is federally insured. If I can afford to take risks, then I could invest in either a growth / income mutual fund. Is the market volatile or steady?
4. When do I need the money? Certificates of deposits are available for investment for different periods ranging from one-day, two-days, a week, a month, 3-months, a year, 2-years and so on…. If I need the money sooner, then I would buy a certificate of deposit. For a mutual fund, the redemption period may not be sooner, or the fees on early redemption may reduce any money generated...
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