[pschnei3]

Was trying to invest my tax return in something(mutual fund, CD,etc..). Trying to start a house fund for myself so I can stop renting. If anybody can help I would appreciate it.

[E36_325i]

CD will be the safest to do but with a small return. Maybe ~5% depending on amount and time.

[sstarch1]

I think you can use a Roth IRA and take money out with no penalty if used twoards the down payment of a home.

[Agni]

If you want saftey go with a CD.
But personally i'd just put it in a stock.

[SteveMD]

I am neither an accountant nor a financial planner but I'm in my 40s and have done resonably well in the market.

So..

Your window for purchasing property is likely one to two years. Even if it is 3-5 years I would be wary of the stock market. While it will generally give you the best returns it can also kick you arse in the short term.

If you do have to dabble, look at an Index fund or ETF which are investment vehicles that mimic the holdings in the given index. For example, an S&P 500 fund like VFINX is comprised of the individual stocks that make up the S&P 500, in the same proportion. An ETF is a newer type of 'fund' that trades in real time like a stock.

iShares have many many ETFs some which are indexed.

Someone mentioned a Roth IRA. NOt a bad idea but the house purchase has to be 5 years away. Otherwise you can only withdraw the contributions without penalty. Not the accrued interest. Do a bit of googling for that info. In any event, you still have to put the money in a stock, bond or mutual fund so all the above warnings still apply.

My advice would be to get into home ownership ASAP so that you can leverage any equity you may realise and benefit from the tax deduction of the mortgage interest.

[ska///235i]

how are the spider funds doing?