What are the best investment when you only have a little bit of money to invest?
I looking for something that will give me tons of bang for my buck. A: If you have a long-term time horizon (5 years or more), I would recommend investing what you’ve got into a stock mutual fund, and signing up for automatic monthly investments. Most companies will waive their minimum investments (usually $1,000 – $2,500) if you do this. For as little as $50-$100 per month, you will be amazed at how fast your money grows. If you’re new to mutual funds, you should start with an S&P 500 fund. This will spread your investment across the 500 largest stocks in the U.S., like Coca Cola, Intel, GE, Disney, etc. Know that the value of your account will fluctuate up and down in the short term, but in the long term you can reasonably expect average annual returns of around 10%. To get started, contact a solid mutual fund company like Vanguard (www.vanguard.com), T. Rowe Price (www.troweprice.com), or Fidelity (www.fidelity.com). I hope that helps. Good luck!
