2007-03-09 11:32:48 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
T. Rowe Price (www.troweprice.com) has some wonderful low fee, no load mutual funds. Their usual minimum investment is $2500 but if you agree to have $50 a month electronically transferred from your checking account (until you reach at least their minimum), you can start with $50. Their equity income is a very good "core or starter" fund or if this money is for retirement, their Target Retirement funds are also good (in my opinion). All depends what you mean by "long term" and what your other investments are.
2007-03-09 11:45:08 · answer #1 · answered by gosh137 6 · 1⤊ 0⤋
If it truly is "long term" (ten years or more), then the mathematically smart place to put it is the most volatile, aggressive investment vehicle you can find (typically small-cap domestic or foreign small cap stocks).
By doing so, and committing to a regular purchase of $50/month regardless of market conditions, you "dollar-cost average", meaning you buy more 'shares' when the prices are low and less when they are high, without even doing any math! And always, always automatically reinvest your dividends...
If you prefer to stay domestic, an excellent long-term "thought-free" strategy is to open an account with one of the ultra-low-cost on-line brokerages like http://www.buyandhold.com or http://www.sharebuilder.com and just buy $50 of SPY, the exchange-traded fund that tracks the S&P500. You won't get rich overnight suddenly & unexpectedly, but you will certainly get rich eventually. The miracle of compound interest!
Best wishes!
2007-03-09 12:52:52 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If its a long term, you can purchase bonds or find a savings account that offers 4%+ interest.
Once you get over a certain amount ($1000) you'll have more options-- like mutual funds-- that also have a bit of risk but higher rewards. If you dont like risk, stick with the accounts, bonds or CD's.
A savings account is simplest and allows you to withdraw if you need to for an emergency.
2007-03-09 11:38:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I really like what the previous post states about dollar cost averaging into the most volatile portfolio with the most proven track record of high returns. What I would like to add is that works the best while accumulating funds and the worst while you are trying to spend them. Just thought I should add that.
2007-03-10 01:09:06 · answer #4 · answered by GoodTimesMakingMoney 2 · 0⤊ 0⤋
Open a brokerage account at Zecco and invest in the ETF DIA.
2007-03-09 12:31:09 · answer #5 · answered by Anonymous · 0⤊ 2⤋
send it to me
2007-03-09 11:36:13 · answer #6 · answered by Anonymous · 0⤊ 2⤋