I have $5,000 to invest. Does somebody know if I can invest them in stocks and where?
- Anonymous1 decade agoFavorite Answer
First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.
Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay. (Depending on the rates, you may want to pay off the mortgage and student loans as well.)
Third, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.
Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will make you a lot of money in the long run.
Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.Source(s): https://flagship.vanguard.com/VGApp/hnw/content/Pl... http://finance.yahoo.com/funds http://www.quatloos.com/asset_allocation_guide.htm... http://www.dallasnews.com/business/scottburns/ http://www.fool.com/school.htm?ref=G02A06
- Anonymous1 decade ago
the best place to invest would be in stocks that are already topped up and them u split and share the benefits of a higher return. think of putting it in real estate first.
- jerryLv 51 decade ago
You can invest it in stocks, if that's the course you wish to take. Check some of the online brokerages, like schwab, ameritrade or etrade, just to name a few.Source(s): A good beginning site is http://www.fool.com,/ which compares the brokerages and talks about investments in general.
- Anonymous1 decade ago
Learn what you are doing first by reading some books.