What is a good cheep first investment?

Question

I have 1000$ and would like to invest it in someting that will generate passave income. This will be a onetime investment for me untill I can save up more money.

Answer 1

Check out these websites:
www.ing.com and www.sharebuilder.com

Answer 2

It depends on if you are going to need the money in the near future. If it's going to be a short term investment, then you can invest it in a CD at a local bank. The bank has terms as little as 30 days up to 5 years or more. Plus, if you don't need the money, it will automatically roll over to another term.

If its going to be a long term investment, then you can invest into stocks or bonds. Since interest rates are rising, bonds wouldn't be a good idea right now because rising interest rates devalues bonds. You can get an on-line brokerage account and invest your money through them. You should be able to make a trade for as little as $10.

Also, if you don't ever want to touch the money again until you retire, then open a Roth IRA and use that to invest your money. There are many options available.

Answer 3

This is dependant on your RISK tolerance. If you're willing to watch your $1000 go up and down than I'd suggest an ETF (Exchange Traded Fund) trading at a discount and paying a nice dividend. Many of the ETF's currently yield in the 7-9% range and trade at 10-15% of their actual market value. Zweig Total Return is one that springs to mind immediately, though there are others...do some homework.

If you don't care to take any risk at all try CD's (boring and don't return much, but are safe). You could also consider US Savings Bonds though they're not particularly liquid once you're into them...however, they do pay better than CD's.

Answer 4

Go for the internet business which require less of your time and the one that will not make you feel headache with web designing or which require IT knowledge. Second, choose the internet based company which offer you the opportunity and at the same time giving you the convenience to start the business. Third, choose the business which does not require big money to start it.

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Answer 5

how long do you plan on investing it?

with the market correcting it's 40+ month bull gains, it's best to put your money either in cash stable funds. there should either be a flat or slight downward trend for the next 6 months or so.

stay out of the tech sector and internationals. that's for sure.

perhaps a CD is your best bet right now. especially with interest rates climbing (it's great for those who SAVE rather than BORROW).

$1000 will get you a nice 12-month return of 5% or more.

Answer 6

Learn about futures and options. With options with plenty of time available and a good broker relationship on low commission ($60 or less) you can get good returns on intelligent choices. It's about growth and communication.

Answer 7

FDIC insured money market savings accounts... They are usually equal and maybe sometimes better yielding (4-5%) than CD's and you are still completely liquid... Some even have atm cards and check-writing access..

http://www.capitalone.com/directbanking/ (4.75% apy)
http://www.hsbcdirect.com/ (5.05% apy)

Answer 8

search on the net for money radomiser