I have $1,000 I would like to invest, what should I invest in?

Question

how do i invest in stocks, any good ones that look promising?
should i put the money in the bank, any ideas?

Answer 1

Getting started in the stock market is actually very easy.

1) Open a brokerage account.

Check out a broker called Zecco (www.zecco.com). The company doesn’t charge a fee to buy or sell stock, doesn’t have a minimum balance, and won’t charge you a fee just for having an account open. Tradeking (www.tradeking.com) and Scottrade (www.scottrade.com) are other options.

2) Buy shares in an exchange traded fund. These are basically mutual funds that trade on the stock market, effectively allowing you to own a little stock in a large number of companies with a single trade. Two prominent examples are the iShares fund (IVV) and the SPDR fund (SPY) both of which hold all 500 stocks in the S&P 500 (a listing of the main US stocks). Both funds have very low costs and should track the performance of the stock market closely.

3) Sit back, relax and do nothing. The stock market averages a 10-12% return over long periods of time. Over 30 years an investment growing at 12% a year will increase 30 times (ie a $1,000 investment will be worth just under $30,000). Just keep adding more cash to your account whenever you can and don’t panic if the market drops a bit.

You can also look into buying individual stocks, but either of these funds will make a great core holding.

I hope that helps. Good luck!

Answer 2

When do you think you'll need the money again? How comfortable are you with risk? If you think you'll need that thousand dollars in the next 5 years you should keep it in something easily accessible (CDs, money market account). If you're talking longterm, $1000 isn't really enough to put in stocks...you could research mutual funds to try and find one that will accept this low (to them) amount. T-bills or bonds would probably a better bet for you right now. And if this is longterm, think about opening a Roth IRA to make your investments through - it'll be a start on retirement savings and if something you goes wrong you can, I believe, withdraw your original contributions without penalty after 5 years. Good luck!

Answer 3

Put it in the bank, until you know what you want to do with it. What companies interest you? Do you drink Coke or Pepsi? You shop at Wal-Mart or Target? Do you eat your burgers at McDonald's or Wendys? These are really good, stable, and usually profitable companies. Check what you like and see if it is publicly traded. Investing is like planting a tree. Be patient. Trading, on the other hand, is more like chasing chickens around. Both can be profitable, even trading, if you have a pattern that helps you catch the good birds efficiently--otherwise it is a lot of work for nothing. Bank interest looks pretty good after a while of that.

Answer 4

No the bank will give you garbage return on the money. It is hard to invest 1,000 dollars and get any type of good return on it, but if I where you I would go to garage sale and pick-up some cheap crap and put it on ebay and build up the money until you get to about 10k. Then with 10k you start making your money work for you. Credit and cold hard cash is the best way to get rich. Good Luck

www.skythacker.com

Answer 5

Go to WWW.morningstar.com and take their free course on stocks.
Then go to www.mystockfund.com and open an account. There is a $5 a month fee to trade there but all the rest of the money goes in buying stocks.
You might also check out www.betterinvesting.org for more information and support. They are suposed to be Non profit. Also a part of National Association of Investors.

Answer 6

$1,000 is good to just buy a bond but it will not bring a big return right away.If you want to risk check stock market,pick a few choices,watch them for a while than make a move but it's like playing roulette.$1,000 it's not enough to place it the way that when one will loose the other will gain but it's possible when you invest it in penny stock.This is this cheep stock very risky

Answer 7

$1,000 isn't considered much these days do I don't think any broker would want to invest on your behalf. Besides with commission you're sum would most probably be too little to invest. I suggest putting them in a bank to earn interest.

Answer 8

Open a brokerage account at Zecco and invest in the ETF IOO.

Note: I am a Portfolio Manager.

Answer 9

I would put your money in ING Direct and receive 4.5% until you decide. It's actually a pretty good gauranteed return anyway!

Answer 10

I would buy a one ounce gold bullion coin and the rest silver.