What are the best mutual funds/stocks for a beginning investor to invest in??

Question

I don't know very much about the stock market but I want to invest. Any tips? I know of E-Trade, Fidelity, Vangaurd etc. but Is one better than the other and what should I invest in? Help Please!!! Anything is good just tell me what to do!

Answer 1

1. Figure out why you are investing (we already know it is to make money, but for what purpose, is it retirement, saving for your first house, kids tuition, etc.)

2. Let's say you are investing for retirement: How long is it til retirement (what is your age). Or, how long will you be investing.

3. Figure out how much money you will need to retire, depending upon the lifestyle you want to live or will be able to live. Figure out things like when will your mortgage be paid off, what type of cash flow will you need to make your monthly living arrangements for things like rent, medicine, and such.

4. Figure out what combination of stocks and bonds and real estate and such will help you achieve those goals.

5. Constantly (annualy) reevaluate your finances and investments, and change them accordingly as to protect your newly accumulated wealth and such.

6. This is it in a nutshell, but it is way more detailed than this. I've put together a site to help you - use it please.

7. Good luck!

Answer 2

The best are the low cost, no load funds,  tracking the S&P 500 index. No doubt.

Get in touch (telephone) with Vanguard or Fidelity,equally good, and have a chat with them. E-Trade are primarily brokers,not fund managers. These funds track the American economy as a whole, do not take risks and you will do as well as the average.

And it is better to invest a little every month, than all in one go. Good luck