Investments.... need help puhlease?

BillsGirl · #1 (**permalink**) 02-07-2006, 05:53 PM

okay so I was debating the stock market... it's still an option however I want to do a alot of watching and researching before I make a decision there...... so I want to know what other options are there for investing and making money? I do NOT have huge amounts of money.... very minimal amount of money... plainly cause I don't get paid much, my paycheck goes to my hubby and I get everything I need so I wanna do something with my 20% I get to keep weekly... Savings accounts pay so little are they even worth it?
I have alittle money in paypal but thats NOT a bank account and thinking there has to be a better option than storing money in paypal...
I don't know much about CD's except for it gets lock up for certain amounts of time but would they do that with my small amount of money?

I am out of ideas..... I will be adding $20 a week to whatever this investment is, so any Ideas will be greatly appreaciated!!! Thanks

kristinecfp · #2 (**permalink**) 02-07-2006, 07:15 PM

What is your goal for this money - retirement, rainy day, kid's college, vacation fund, emergency fund, etc.? Where you put the money depends first on your goal for the money.

If it's for emergencies, then a high-interest money market or CDs. If it's for retirement, then a diversified mutual fund (see the discussion about Fidelity Freedom and Vanguard LifeCycle funds).

This is a great forum, so I'm sure you'll get some great ideas from the other posts, but you might give some more info so we can help you better.

Good luck,

sweeps · #3 (**permalink**) 02-07-2006, 08:39 PM

Billsgirl, once again Kristine is right. You need to think about when you might need this money, but also you need to think about your risk tolerance. Will you be able to stick through it if you buy a stock and it goes down a little bit?

If this is money you want to save for retirement, you could open a Roth IRA at T. Rowe Price for $50/month (using its "Automatic Asset Builder").

BillsGirl · #4 (**permalink**) 02-08-2006, 01:46 AM

very "future" rainy days.... basically my husband goes to law school in April and I will be wearing the pants then, and now while I can spare a few dollars I wanna put it away...... I am guessing I can go without touching any of it for 6 months or longer... I plan on not touching it for longer and I would have no prob seeing it locked up for longer...... The money I would put into the stock market, Will be money I am willing to say goodbye to.... I understand my rick of making nothing and losing it all, and therefor I want put enough in a stock to hurt me financially...... bu also if I can make money with less risk, that would be nice to.....

so bottom the money is for future rainy days... but with no "need" to be able to reach it in between!

sweeps · #5 (**permalink**) 02-08-2006, 06:03 AM

BG, you could also open a Sharebuilder or Scottrade account. (There are other threads on this). Then you could invest regularly in an ETF. For example, "SPY" mirrors the S&P 500 index.

However, if you do buy ETFs or stocks on a regular basis, I would only do it quarterly. Otherwise you'd be spending a large percentage of your savings on commissions.

Ima saver · #6 (**permalink**) 02-08-2006, 06:51 AM

I would not put this money in the stock market or in a mutual fund. Sounds like you might need to touch this money this year, so the savings need so be in a good money market account or savings account. there are several talked about here that are paying over 4% like ING HBCB and emigrant. You might shop around in your home town. I have found a money market here that pays 3.68 but you have to keep $2,500 in it, and one savings that is paing 4.14% for $50,000 or more.
Probably one of the three internet banks is the best for you.

Fern · #7 (**permalink**) 02-08-2006, 11:38 AM

If you have limited funds free for investing, steer clear of the stock market. Every time you make a trade (buy or sell), you'll be hit up with a fee. Not worth it unless you have bigger bucks.

Ima saver · #8 (**permalink**) 02-08-2006, 01:22 PM

Plus you will have to deal with that at tax time. I would stay away from the stock market unless you can commit to leaving your money there for years, so it can grow.

BillsGirl · #9 (**permalink**) 02-08-2006, 02:15 PM

Quote:

Originally Posted by Ima saver

Plus you will have to deal with that at tax time. I would stay away from the stock market unless you can commit to leaving your money there for years, so it can grow.

If I bought stocks that is what I would do!

Ima saver · #10 (**permalink**) 02-08-2006, 03:10 PM

It is hard to buy stocks for $20 a week. I would really reccomment you put it in one of those internet banks and let it build up.

sweeps · #11 (**permalink**) 02-08-2006, 04:43 PM

As I stated previously, BillsGirl could buy stocks or ETFs quarterly, which means she could put in about $240 at a time.

On a side note -- If now's not the time to put money into stocks, when is? Putting all your money in savings accounts means you're just treading water (after inflation). You won't sink, but you won't get ahead either.