Ziay!

The Other Man

I have a modest amount of about $1,000. Experienced investors only, please.

atifali_77

depends for how long you willing to invest and wait and how much risk you can take if you buy some stock the return would be high but more risk and then less risky would be mutual funds but there u wont be able to with draw you money before a certain time risk free and less return is goverment bonds whcih will give annualy payment and after a 5 or 10 year when bonds get mature you get par value of the bond but u can cash it into the market any time you want to

cran

One thing to consider is your timeline. Are you looking at some quick profits or are you looking to invest the $1k and be ok if the market goes up and down.

Stocks will provide you the biggest gain..however, it is also the riskiest. If you choose to invest it in stocks...pick one stock and put the $1k into it. You don't want to own $200 worth of 5 different stocks. Just keep in mind that it will fluctuate on a daily basis. Pick a high quality stock. GE has always been one of my favorites. It is almost like a mutual fund because they are so diverse within the company. They pay a 2.8% dividend which isn't bad. The stock doesn't move much but it's stable.

Mutual funds are a lot more stable than an individual stock. They tend to move slow because it's usually very diversed and invested in 50+ different stocks. If you choose a mutual fund, I'd pick something like the Vanguard Total Stock Market Index Fund. It tracks the entire stock market.

Bonds- not as exciting as stocks or mutual funds. But super stable. If you are ok with the returns and not a big risk taker..this is the one you want.

I have a friend who is scared of losing even a penny in the market and puts all his money in CDs!! But everyone is different when it comes to how much they are willing to lose.