Investing Small Amount For First Timer

[girlx]

i would like to invest about $5k instead of just letting it sit in my account while i am in asia (though it is in a money market account).

i know the dollar is falling, so was thinking of investing in gold or foreign currencies.

what would you all suggest?

would prefer an account i can manage online.

p.s. i am a total newbie at investing.

[LaoPo]

i would like to invest about $5k instead of just letting it sit in my account while i am in asia (though it is in a money market account).

i know the dollar is falling, so was thinking of investing in gold or foreign currencies.

what would you all suggest?

would prefer an account i can manage online.

p.s. i am a total newbie at investing.

Stay away with foreign currencies at the moment; with this kind of money it's too risky.

Gold would be a good idea; you can't loose much with all the unrest in the world.

Have a look here:

many 'gold futures' online, but advise you to talk to someone who knows the trade first how/when/if, since 'futures' can be risky as well:

http://www.google.com/search?hl=en&q=gold+...G=Google+Search

LaoPo

[Thaiquila]

Its a little radical, and the stock is already up, but I would put the entire bundle in BURRITOS:

http://www.chicagobusiness.com/cgi-bin/news.pl?id=19875

[tjo o tjim]

I will offer my personal opinion- YMMV.

Gold has no intrinsic value. People put their money in it largely due to fear about the future and clinging to the long gone sense of a "gold standard."

Long term, the dollar is likely to drop 5% per year against a basket of asian currencies. Money kept in the US wouled therefore need to earn 5% interest just to break even- 6 or 7% when you factor in taxes. Many US stocks can easily beat that return. Investing in a single currency doesn't make much sense from a risk standpoint.

One more bit of advice- practice measured investing. Transfer money or buy stocks over several transactions when you see a buying opportunity. This helps break the "day trader" mentality and capitalize on price volatility.

For specific stocks, I still like Apple Computer (aapl). It has room for 20% appreciation over the next year, possibly much more. If that isn't your style, try an oil ETF (Exchange Traded Fund). It's hard to go wrong with oil, at least if you don't buy all at once.

[Firefan]

Hmmm... One would need to know a bit more about your risk willingness and whn you except to se the money?

If you accept some risk and do not need the money (at least not the exact amount - I.e. can accept a loss) a couple of exchange traded funds like VTI(entire US market), EFA(developed foreign market )and VWO (emerging markets) might do the trick. Cheap expense ratio and super diversified (well within stocks at least).

Meanwhile; if you don't want any loss risk I would just suggest a CD or a high interest MM-account and leave it at that.

Oh; and invest a few buck of them in a beginner investment book like Bogleheads Guide to investing before doing anything besides the CDs/high interest account.

Cheers!

[LivinLOS]

Everclear are offering a gold based CD.. It offers a 100% asset protection and a % of the gold upside.. Very safe and yet expeosure to the metals and commodity market.

[ding]

If you decide on gold, you can micro diversify by buying gold coins. You can buy them on ebay from dealers with long history and good feedback, or find reputable dealers. Canadian are a little purer from my reading.

Then I like the idea of an index fund. I'm dollar cost averaging -just contributing monthly no matter the beast controlling the market, bull or bear.

my .02 only

[Jamie]

I would stay away from gold or other precious metals if you are looking at a short-term investment. While precious metals are a good hedge against inflation, it's best to keep no more than 10% of your total investments in those types of commodities.

You don't say how long you are planning on staying in Asia. If you are talking a few months then I would stick with a money market account. You know you aren't going to lose anything. There are also online savings accounts like ING or Emmigrant Direct that offer decent APYs...even some short-term CDs are paying reasonably well.

Jamie

[bluedragon]

Hi, if you new to investing, I would suggest a mutual fund. This way you don't put all your eggs in one basket, and your risk is lower then one type of investment.

There are some mutual funds that are getting 8-26%

BD.

[markuk]

invest it in the adult entertainment industry - always growing..

[KhunPadThai]

Since you admittedly don't know anything about investing, why don't you start reading books and taking courses so that you can eventually make informed and reasoned choices in managing your money?

[LaoPo]

invest it in the adult entertainment industry - always growing..

Did you? and if so, what/how/where/when?

Most curious about the performance rate of invested capital

LaoPo

[Rinrada]

i would like to invest about $5k instead of just letting it sit in my account while i am in asia (though it is in a money market account).

i know the dollar is falling, so was thinking of investing in gold or foreign currencies.

what would you all suggest?

would prefer an account i can manage online.

p.s. i am a total newbie at investing.

oil......gee J.R....ye recon ye all......

[girlx]

thought i would bring this up again as i am thinking about it again.

[thaihome]

If you decide on gold, you can micro diversify by buying gold coins. You can buy them on ebay from dealers with long history and good feedback, or find reputable dealers. Canadian are a little purer from my reading.

Then I like the idea of an index fund. I'm dollar cost averaging -just contributing monthly no matter the beast controlling the market, bull or bear.

my .02 only

You guys did read this was $5,000 USD he is worried about. Buy a CD or a mutual fund.

TH

[Vespa]

I will offer my personal opinion- YMMV.

Long term, the dollar is likely to drop 5% per year against a basket of asian currencies.

For how many years and what are you basing that on ?

[Tompa]

invest it in the adult entertainment industry - always growing..

Did you? and if so, what/how/where/when?

Most curious about the performance rate of invested capital

LaoPo

One of the bigger adult entertainment companies out there is Private. You can check out the history of the stock at

http://finance.yahoo.com/q/bc?s=PRVT&t=5y

[Firefan]

Hi Girlx,

My below advise still stands. As said it depends on your time horizon and risk profile though? Can you answer?

I do not have exact returns from when you asked last earlier in the year, but from the start of the year; 33% in each of the 3 exchange traded funds I recommended would have you up 23% overall.

Interestingly enough you would have been up about 10% "only" from the time you asked last time, as it was just before a dip/market correction across the board.

Again; until you learn more; park the money in MM-account/CD/time deposit at a decent 4-5% and read the book I mentioned. Worth the $20 investment!

Cheers!

Hmmm... One would need to know a bit more about your risk willingness and whn you except to se the money?

If you accept some risk and do not need the money (at least not the exact amount - I.e. can accept a loss) a couple of exchange traded funds like VTI(entire US market), EFA(developed foreign market )and VWO (emerging markets) might do the trick. Cheap expense ratio and super diversified (well within stocks at least).

Meanwhile; if you don't want any loss risk I would just suggest a CD or a high interest MM-account and leave it at that.

Oh; and invest a few buck of them in a beginner investment book like Bogleheads Guide to investing before doing anything besides the CDs/high interest account.

Cheers!

[fxm88]

Two words: Beanie Babies. The markets have beaten them down over the last few years but all my indicators suggest a major rebound in '07. (However, if putting all your eggs in one basket seems too risky, then you may want to put some -- no more than 10% -- in Iraqi Dinars.)

[bluedragon]

girlx, as you have probably figured out by now there are many forms of investment you look at.

I would as one poster suggested, do a little research(after all it is your money), and then decide.

As i stated earlier I think for a newbe investor, mutual funds make sense, and you can add to that every month and let dollar cost averaging help grow your investment.

Some of the fund companies I suggest would be Janus, Fidelity, and Scudder. Also, try to get into what is called a noload fund. These are funds that don't charge a upfront fee, however you will have to pay some % for a management fee, and possibly something else. Hope this helps. Regards, BD

[HenryB]

Since you admittedly don't know anything about investing, why don't you start reading books and taking courses so that you can eventually make informed and reasoned choices in managing your money?

Reading is for fools. Do what I do I give my money to my Thai wife and her and her familiy invest it for me. I promise you they do not read or known anyone that has owned a book