Help me invest $2000

[VanTheMan]

I know these threads pop up every once in awhile, but I figured I'd start my own so I could get some current information.

I know very little about investing, but I want to start. I have several thousand dollars saved, so I'm thinking I could start with $2000 right now. From the research I've done, I'm thinking I want to go with a Vanguard or Fidelity index fund. I just don't know enough about them to make a decision on what fund to invest in. Any advice is welcome and appreciated.

 

[bennylong]

When in doubt, stick with a low expense index fund like the Vanguard S&P 500

 

[sjwaste]

You already have it. Vanguard index fund. I forget if its a $2 or $3000 minimum, but TIAA-CREF has lower mins if you need that.

$2k isn't enough to diversify into invidivual stocks, and index funds have good returns in the long run.

If you don't have one already, open an IRA. Contribute 4k a year. Vanguard's a good place for those too.

 

[her209]

Originally posted by: sjwaste
$2k isn't enough to diversify into invidivual stocks, and index funds have good returns in the long run.

I say screw diversification... all or nothing@!@@@!@

 

[Triforceofcourage]

high yield online savings account. Amtrust direct has one for 5.3%

 

[petejk]

how old are you?
do you have a job?

personally, I'd buy 1k-2k of some 1-2 dollar stock shares
in a company with solid fundamentals and a good technical chart.

 

[sjwaste]

Originally posted by: Triforceofcourage
high yield online savings account. Amtrust direct has one for 5.3%

Also a very good recommendation. If OP is younger, though, might as well put it towards retirement. I'm 25 and put most of my monthly savings into a 401k (heavy on int'l index funds), with about a quarter going into a ~5% emigrant direct savings acct for liquidity.

 

[IGBT]

..how much is Ford stock?? less then 5.00 a share?

 

[VanTheMan]

I'm 24 and I have a job. Petejk, buying individual stocks seems a little risky for me right now. Would it make more sense to start doing that after I have some more solid investments in place? Would it be a good idea to put $1000 or so into one of the online savings accounts in addition to putting $2000 into an index fund?

 

[Engineer]

Originally posted by: IGBT
..how much is Ford stock?? less then 5.00 a share?

$7.62 per share.

Note to OP: make sure $2,000 is enough to open those funds up. Many funds have requirements of $2,500 minimum to open. YMMV.

With that said, DODFX (Dodge and Cox International Fund)!

 

[everman]

What amount of time do you want to keep this money invested? What purpose do you intend to use it for? Where is the money right now (and int rate)?

 

[VanTheMan]

If it's a matter of $500 to buy into a good fund, I'll spend the extra $500. This will be a long term investment for retirement. The money is currently in a non-interest bearing checking account.

 

[Engineer]

Originally posted by: VanTheMan
If it's a matter of $500 to buy into a good fund, I'll spend the extra $500. This will be a long term investment for retirement. The money is currently in a non-interest bearing checking account.

Then you really can't go wrong with the Vanguard SP500 fund. Just make sure whatever broker you choose doesn't have a load or sales commission on that fund.

 

[VanTheMan]

What would something like a the Vanguard SP500 mean for my taxes? I don't have an IRA or anything.

 

[sjwaste]

If this is for retirement, open a retirement account. IRA. You can google the advantages, check FW Finance, etc. Most will waive fees for IRA accounts that they would normally charge with the same amount invested in a brokerage acct.

 

[VanTheMan]

I just checked Vanguard's website and it looks like $3000 is the minimum for all their index funds.

 

[thereds]

What is the procedure to invest in a mutual fund? Do I have to go through a broker?

What's the most efficient and cost effective method?

 

[VanTheMan]

I can't seem to find any Fidelity index funds with less than a $10000 minimum. I see domestic equity funds with $2500, but no index funds.

 

[bennylong]

Originally posted by: thereds
What is the procedure to invest in a mutual fund? Do I have to go through a broker?

What's the most efficient and cost effective method?

Buy directly from the fund company. Never buy through a broker and pay a load or commison unless you're a dumbassessss

 

[Schadenfreude]

Originally posted by: VanTheMan
What would something like a the Vanguard SP500 mean for my taxes? I don't have an IRA or anything.

Same boat as you; but I've opted to go w/ opening an IRA account - my company has a program that matches (to a limited amt) the dollar amt put into the IRA acct as well - I believe that this is a pretty common thing amongst companies (I'm not sure), but I'd defnitely suggest looking up an IRA account.

 

[BoldAsLove]

put it in cramers stock of the year...and let it just ride for the year....NYX.

 

[puffff]

why go with a fund. learn a little bit about the stock market and make your own decisions.

 

[bennylong]

Originally posted by: BoldAsLove
put it in cramers stock of the year...and let it just ride for the year....NYX.

HUH?I thought the stock of the year was RICK

http://finance.yahoo.com/q/pr?s=RICK

 

[VanTheMan]

Originally posted by: puffff
why go with a fund. learn a little bit about the stock market and make your own decisions.

I'd rather not have the stress and risk of buying individual stocks. If I was going to do that, I would want to study the market for several years and I'm looking to get something started right away.

 

[BoldAsLove]

Originally posted by: VanTheMan

Originally posted by: puffff
why go with a fund. learn a little bit about the stock market and make your own decisions.

I'd rather not have the stress and risk of buying individual stocks. If I was going to do that, I would want to study the market for several years and I'm looking to get something started right away.

believe me...buy a Cramer stock of the year...just hold it til year end and sell. Cramer says NYX is going to $240...believe it. Anything he says will push stocks up like crazy. Buy at the $100...sell some at $150...sell some at $200...then sell the rest at $240...easy money.