PRyder2000
 |
Stocks are historically a worthwhile investment. The recent turmoil over the subprime mortgage crisis is certainly cause for concern, but this could be the perfect time to pick up a bargain, and reap the benefits from it over a long term period.
I can't advise on any particular stocks, unfortunately. I can recommend the book, "The Intelligent Investor" by Benjamin Graham, which is quite a heavy volume for a beginner, but it gives sound advise, and is approved by Warren Buffet - High praise indeed!
The generally accepted investment strategy is to have 25%-75% of your money in shares, 25%-75% in bonds and savings, etc., and maybe 5% in commodities like gold.
However, if you only have $3,000 if you diversify heavily like that you'll end up paying a large percentage in broker fees and other charges. And if you invest in shares, then you have to be prepared to lose the money! Shares go up and down, sometimes in a rather unforgiving, unsympathetic way. Savings accounts are normally fairly safe.
However, for better returns, you may consider Zopa.com. This is an online lending and borrowing exchange that operates in the UK, US and Italy. It allows you to give loans directly to individuals without the need for banks to get involved. You choose your rate of return, the people you lend to according to their credit rating (so you can adjust the risk according to your preference) and the duration of the loan. I'm currently receiving 7.5%-11% return per year in the UK, whereas a savings account will pay about 5%-6.5%. In the UK there's an offer on, where you receive £30 if you lend out £500 or more when you apply by the following link:
www.zopa.com/member/The%20Hulk
If you follow the link in the US, it will hopefully redirect you to the US site, and there's probably a similar offer.
I would never advise you to put all your money in one place, but have a look, and see what you think.
Hope this is of help. |
TODD P
|
If your new to this buy an index fund like the spider. but wait a little while until the market finds a bottom.Maybe about a month before the government sends out those rebate checks they are promising. Also, use a online broker like Scottrade to keep your commissions down. Buy $1000 at first, wait a month buy $1000, then wait another month to buy the rest. good luck! |
da_zoo_keeper
|
Not stocks! It would really depend upon when you will need the $$! If you're gonna use it for school or something like that and you'll need access to the funds withing a couple of years, keep it in something simple like a CD! If it's a longer term investment, you could try some bonds. |
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