I have about 500-1000 dollars every month to invest, what should I do with it?

Question

I have about 500-1000 dollars every month to invest, what should I do with it, I already have a high yielding roth 401k but it is maxed I am not allowed to put any more then I do in it, due to restrictions from my employer, I am 25 and currently in school for another 6-8 years, due to my full time career :/ to afford school lol.

Answer 1

The stock markets are quite uncertain but with inflation and crude oil issues coming into focus, why not try the commodities market? It's better than stocks and the returns on trading can be quite good. The forex market too (the biggest in the world) is another choice given your monthly allocation.

Answer 2

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Answer 3

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Answer 4

First of all, GREAT JOB on maxing out your 401(k)!  Not many people can achieve that - very impressive.  

My advice assumes you have no debt (if you do, it should be paid off before any investment activity).

Unless you'll need the money sooner, I would recommend opening a Roth IRA and maxing your contribution.  In 2008, you can contribute up to $5,000, which works out to $416/month (or, if you're starting now, you have 10 months - you can make 2008 contributions through April 15, 2009 - which would be $500/month).

I personally enjoy the convenience of mutual funds - they do all the stock picking, and they will also set up automatic monthly investments from your checking or savings account.  If you go this route, pick a solid fund company like Vanguard, T. Rowe Price, or Fidelity.

It sounds like you might want to take a more "hands-on" approach.  You can still set up a stock trading account in an IRA (preferably Roth at your age) - again, only if you won't be needing that $$ before retirement.  But be sure to follow the golden rules so that you don't lose too much money:

1. Never have more than 10% of your portfolio in any one stock (I prefer 5%, but 10% at the absolute maximum).

2. Always place a stop-limit order for 10% below your purchase price, so that you cut your losses when a stock tanks.

I hope that helps.  Good luck!

Answer 5

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Answer 6

If stocks are what you're looking for, try checking out sharebuilder.com... They have the best plans I've seen.

Answer 7

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Answer 8

If you have that much to invest, why not buy a small place by school since you plan on being there another 6-8 years?  You'd have to pay to live somewhere anyway.

Otherwise.. buy gold & or silver bullion. Keep it in a safe deposit box. With inflation kicking in you'll do well.  You could buy 3/4 to an oz of gold a month. It's just slipped a little so it's a good time to get in.

Answer 9

If you want to trade individual stocks, I recommend zecco.com.  As long as you have a balance of at least $2,500, you get 10 free trades a month which really adds up in savings over time.  Also any trades beyond the 10 free trades is only $4.50/trade.

Otherwise, I would recommend putting the money in mutual funds especially if you are an inexperienced investor.  Look at Vanguard or Fidelity as they have a great selection of no-load funds with very low expense ratios, especially in the case of Vanguard.

However make sure you have at least 3 months worth of cash in a money market account stashed away as an emergency fund before you devote money to investments.