Investment Ideas?

Question

I've decided to roll over a 401k into an IRA and I'm going to let that sit in mutual funds and grow,adding money over time.I'm getting back $1,500 from my taxes,I'm trying to decide if I should put that into individual stocks,money market account,mutual funds or all 3.Got any ideas?

Answer 1

1) Great idea to roll your 401K into an IRA.

2) Bad idea to let that sit in mutual funds

3) Put the monies that you would have put into mutual funds into ETFs instead. On days like this past Monday, you could have sold 10 min into the market when it was down 200 pts instead of having to wait until the end of the day when it was down 400 pts which is your only option w/ mutual funds. There are many other reasons, just do a search on some of my other answers to see why.

4) Use the $1500 to learn more about investing. Learn how to write covered calls and/or more about other ETFs you can invest in. Not only will you increase your returns, but you'll lower your risk in the future.

5) With the added knowledge, you can carve out a small % of your portfolio to invest in trending stocks like NKE or COH or ATI, etc.

Hope that helps!