Re:Might as well post something.

mgeezy — Thu, 04 Sep 2008 17:20:29 GMT

whatsup just starting what pointer would u give in just having less than 1000 to invest and looking for another stream of income

Re:Re:Might as well post something.

racsofp — Fri, 05 Sep 2008 04:48:57 GMT

This is just what I would do, and remember there's more than one way to skin a cat.

If you have less than $1000, save up until you can afford to get into a good, low cost index fund. You want a broad one since it's your only investment at this point. Look for something with a low expense ratio. There's no reason to get an index fund that costs .8% when you can easily find one that charges .1% to .25%.

Vanguard Total Stock Market Index (VTSMX) and Fidelity Spartan Total Market Index (FSEMX) provide broad coverage to the entire US stock market and both have extremely low expense ratios.

Vanguard Total World Stock Index (VTWSX) provides broader coverage, with 1900 stocks in 47 countries. This expense ratio is a bit higher at .45%, but you get a global portfolio in one fund.

Both the Vanguard funds have minimum investments of $3000. The Fidelity fund has a minimum investment of $10,000, but if you're looking to open an IRA, you can use their SimpleStart plan (http://personal.fidelity.com/products/retirement/getstart/ira-center.shtml.cvsr?refhp=p), which basically exempts you from the minimum purchase as long as you invest $200 each month after that.

These are just a place for you to get started looking, though. Never take anyone's word for anything or blindly invest in anything. Always check out whatever people point you to, and look at other options.

The main thing I would say though is to repeat what I said above: For your only investment try to find a good quality, low cost, reputable index fund with broad coverage.

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Re:Might as well post something.

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