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Alchemiss · 07-11-2007, 05:21 PM

I would recommend getting a minimal working knowledge of stocks because they are a great way to make money over the long term. The riskiness of stocks varies with those in the Fortune 500 (big companies, many have been around for years, if not generations) being fairly safe bets. The best way to invest is automatically so you don't try to time the market. A great place to start would be with a 500 Index Fund. The risk is low and the returns are much higher than a savings, checking, or CD account. The key is not to check it too often--think long-term because short-term variations (called volatility) might make you nervous. The other nice thing about an index fund is there isn't a guru picking stocks who wants a cut. The fund tracks an index which is a predetermined set of companies.

I highly recommend Vanguard's funds because they are low cost (i.e., they don't take a big cut for themselves). The Vanguard 500 Index Fund requires $3000 to start. https://flagship.vanguard.com/VGApp/...FundIntExt=INT

Depending on how much you have, you could put some in an Index Fund and some in a Money Market account (more liquid). https://flagship.vanguard.com/VGApp/...FundIntExt=INT Or you could use a money market account to automatically invest until you reach the $3000 if you don't have that much yet.

07-11-2007, 05:21 PM	#5 (permalink)
Alchemiss Member Join Date: May 2007 Posts: 84	I would recommend getting a minimal working knowledge of stocks because they are a great way to make money over the long term. The riskiness of stocks varies with those in the Fortune 500 (big companies, many have been around for years, if not generations) being fairly safe bets. The best way to invest is automatically so you don't try to time the market. A great place to start would be with a 500 Index Fund. The risk is low and the returns are much higher than a savings, checking, or CD account. The key is not to check it too often--think long-term because short-term variations (called volatility) might make you nervous. The other nice thing about an index fund is there isn't a guru picking stocks who wants a cut. The fund tracks an index which is a predetermined set of companies. I highly recommend Vanguard's funds because they are low cost (i.e., they don't take a big cut for themselves). The Vanguard 500 Index Fund requires $3000 to start. https://flagship.vanguard.com/VGApp/...FundIntExt=INT Depending on how much you have, you could put some in an Index Fund and some in a Money Market account (more liquid). https://flagship.vanguard.com/VGApp/...FundIntExt=INT Or you could use a money market account to automatically invest until you reach the $3000 if you don't have that much yet.