I have $20,000 and want to invest, any sugestions?

Answer 1

As is the case with many Yahoo! questions, some of the foregoing answers are pretty good, and some suck. Oops, I mean, some are not so good.

The answer depends on a couple of things, mainly your risk tolerance, and your time horizon. If you REALLY need this money and if you'll need it in a few years, that suggests a more conservative approach. On the other hand, if this is like "found money" and you have a higher tolerance for risk and a lot of time in front of you (like more than 10 years), that would lead to a different mix of investments.

So, without knowing those things, it's really imprudent to say what you should do. That fact notwithstanding, assuming you're younger to middle-aged, and you have a reasonably high risk tolerance, and you believe in the future of the US economy, I would suggest $5,000 in a dow jones or s&p 500 index fund (Someone already mentioned Vanguard, which has really low fees, but there are many others as well.) Then $5,000 in a real estate fund (I like Cohen and Stiers), then $5,000 in a large general purpose fund, like American's Investment Company of America. Lastly, I'd put $5,000 in a foreign fund, like Dodge & Cox International.

Once you've done your research, then made your decisions, then invested your money, your work is NOT over. You have to watch them and see that they are performing satisfactorily, relative to the relevant index. Don't check them every day--you'll go nuts doing that. Just look at them every couple of weeks, and AT LEAST quarterly to see how they're doing. If you see any red flags, increase your frequency of review.

Don't become wedded to your initial choices. If a fund really starts going south, get your backup plan in place.

Good luck. I wish you well.

Answer 2

Research some good blue chip companies like GLW, GE, MSFT, GMR, DOW, T. Those are a few to start with. Get about 4 chunks of stock and put a little bit of money into some kind of cash account so that you can jump on any last minute investments. Also, max out your IRA which is $4000. Research, research, research and you will find good companies with good earnings. Only get stocks that are on the S&P500 because anything else is too risky and unpredictable. If you have half a brain, you won;t need to get a broker; just open an Ameritrade Roth IRA and traditional account. Max out your Roth and put everything else in the traditional account. Diversify into 3-5 different stocks of companies that you have heard of(not necessary but it is safer). DONT BUY PENNY STOCKS. If a stock is less than ten bucks, it carries way too much versatility for longer term investing. The key to your future will be your age now and putting the max ammount of money into your Roth IRA. Dont go overboard and buy 10 different stocks because good performance in a couple will be undone by bad performance in all of the others. Just stick to strong, well known and powerful companies. There are some world famous investors that invest in 1 or 2 companies at a time(i.e. they have 10 million doallrs and buy 5 million dollars worth of stock in 2 different companies only). Their investment decisions are so accurate that they can avoid diversification and reap the maximum benifits for good stock performance in those 2 companies.

Answer 3

Over the long haul the stocks tend to return more than other asset classes. The easiest way to invest in the market is to buy shares of either a no load S&P 500 index fund or exchange traded fund.

These both allow you to buy stock in the 500 largest companies in the United States. Vanguard (www.vanguard.com) has a well known index fund. Alternately you could open an account at E-Trade or a similar brokerage and buy shares of an ETF (SPY and I V V are the ticker symbols of well known ETFs).

Answer 4

It depends on what you're looking to do with your money and where you are in your life.

Putting it into a money market account (much less volatile than any stock) will yield 5%.

If you're looking for long term growth stick to bigger companies until you're more familiar with how the market works. With AMD off it's high off $40 and now hovering in the mid $20's, I think that may be a good investment, especially with the ATI buyout likely.

Also take a look at stocks that pay a dividend. (MSFT does, but it's quite small)

Answer 5

Learn to Invest Money in Small Cap Stocks and Make Triple Digit Profits Part One
By: John Kim

On page one you'll find the rest of the article! This site has more tips and advice...Read and learn before you invest.

Good Luck!

Answer 6

That mostly depends on where you plan to live. Industry and trends don't prevail the same in every area. If you are in the midwest be leary about investing your money at this point in time, unless you are thinking about a liquor store or something, but even then the liquor licence itself could cost you upwords of $20,000.

Answer 7

Invest in TD ameritrade ( amtd ). If you are going to buy stocks then investing in a brokerage firm is a very good idea. Buy and hold for at least 18 months.....good luck

Answer 8

With that sum of money a mutual fund would be best. You will get good diversification and reasonable fees.

True "value" funds have historically significantly outperformed the market over the long-term. VALUX is a very good one which is broadly diversified. Check their long-term track record, they have done very well and will likely continue to do so as their process is very good.

Otherwise your best alternative is a low cost index fund. Vanguard is good, fidelity as well.

Avoid market timing, trying to time presidential cycles, etc, chasing hot stocks, etc. You will do poorly over the long-term trying this stuff.

Answer 9

Find an investment professional near you - banks, independent brokers, what have you, and let them work with your individual risk tolerance and make suggestions.

They'll be much better (i.e., matching what you want) than any you'll get here. :)

Answer 10

Hi, i know what your question means. i also think stock market is a nice place for investing.

I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.

http://www.bernanke.cn/stock-trade/

Best Wishes && Good Luck!