Comments on: Ups and Downs

By: Eric Toya

Eric Toya — Wed, 13 Feb 2008 22:13:00 +0000

Nicole (an anonymous),
An important point, CFP is not the same as “fee-only”, which I believe is what anonymous was referring to. Many salespeople at brokerage or insurance companies obtain the CFP. To find a fee-only planner in your area go to the NAPFA website at napfa.org.

By: Moneywinks

Moneywinks — Fri, 25 Jan 2008 22:26:00 +0000

I would put the money into a CD. This is a guranteed rate and if you know you won’t need the cash for awhile it could be a good idea while the market is on it’s roller coaster.

By: Anonymous

Anonymous — Wed, 23 Jan 2008 19:08:00 +0000

If you have extra cash, but not the time to thoroughly research stocks, then I’d just contribute more to your 401(k) — assuming that’s well diversified & correctly balanced. I inherited some money, so now I’m maxing out my 401(k), even though that means what’s left of my paycheck doesn’t cover my bills. Withdrawing money from savings seems strange, but it’s the best deal for me, because it’s tax-advantaged (already maxed out IRA)!

By: Nels

Nels — Wed, 23 Jan 2008 14:48:00 +0000

Honestly, getting into the stock market because it's down and you have some cash is not a good reason to get in.

You should have a reason like you want to save more money for retirement (like in a Roth IRA instead of just in your 401k), or you are saving for something else that is a ways off still and want to try to make some extra money over just a plain savings account.

That said, if you have a goal like that, then now is a good time to start buying some stocks, ETFs, or mutual funds.

By: Emily Gerson

Emily Gerson — Tue, 22 Jan 2008 21:24:00 +0000

I was actually wondering the very same thing today! I’m not sure either — I’m also a young working woman with a 401k but no other stocks. I was thinking about Etrade but I’m worried that I don’t know what I’m doing! Wish I could help, but I’m in the same boat…

By: Anonymous

Anonymous — Tue, 22 Jan 2008 21:13:00 +0000

Nicole:

Go see a Certified Financial Planner (CFP). They are supposed to give you the big picture view of your finances,retirement goals, etc. They are not salespeople.They will charge a fee, ask them how much it is up front. Anyone who is not a CFP will have "just what you need"

Be wary!

By: Anonymous

Anonymous — Tue, 22 Jan 2008 19:40:00 +0000

The 1st question is: when will you need that money back? 1 year, 5 years, or longer?

The shorter time you have for that money, the safer investment it should be.

Depends on the amount of money you have, if you don’t have money to create your own diversified portfolio with at least 10 stocks, index funds/ETFs will provide you the diversification you need.

In general, if you plan to buy a little every month or so (like the 401k), you should get some mutual funds. Otherwise, ETFs will suit you best.

See Vanguard ETFs (open an account there), buy some US total market, EuroPacific, and emerging markets. https://personal.vanguard.com/us/funds/etf/bytype

By: Nicole

Nicole — Tue, 22 Jan 2008 18:16:00 +0000

Good call. I’m just doing some preliminary research on what the first step would be. I’m probably the farthest thing away from hasty there is! It was just a question on my mind, in case I did decide to go that way. Thanks!

By: longroad

longroad — Tue, 22 Jan 2008 16:56:00 +0000

Not to come across as rude... but... if you have to ask what you should do, you should probably wait and take the free consultation.

There are too many questions.

- What risk are you willing to take.
- What is your knowledge of individual stocks. (more risk) Or should you invest in index funds (risky in the short term, but a good idea for the long run.)
- How much you want to invest.
- How long you plan to keep it in there?

Best to talk to someone.

Good luck.