Re: Investment advice requested
1. Pay off debt. You can make 18-21% by not losing that money to a financial institution in the first place.
2. No-load index funds in a tax-sheltered scenario, like 401k or IRA, can be good. They typically have lower expenses, are worry-free because they just try to keep pace with an index, have good diversification among the top companies, and historically have above 10% return (beat inflation and make some money.) Motleyfool.com has a list of no-load, index funds. Vanguard, T.Rowe, Fidelity are good.
3. Riskier funds/stocks, real estate, local business may provide a greater return or leave you with empty pockets. Do your research and don't use the baby's milk money. For stocks and funds, check for expense ratios, loads and fees, historic returns relative to the index or other funds in the same category, political and market changes that may affect the industry, etc. Buy undervalued stocks. Some stocks may look great now, but are really at a peak that's about to take a dive. Oil and energy seem hot right now, will it last? I don't know, I haven't done the research. Morningstar.com has some good screening tools for free.
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