Basic investing?

I have a few thousand saved up and I am debating what to do next, put it in a short term CD, take it out, and then put it in stocks? How easy is doing Etrade or are there better options?

The question is more about putting the money somewhere that I can get a decent return on that I can forget about for a while and come back to. I wanted to get an idea from others what they're comfortable doing if they're on a budget and have some tax return money coming to them.

With only a few thousand dollars you shouldn't really look at investing in individual stocks (IMO) you simply don't have enough money to properly diversify. CD's aren't really good "investments", they are a good place to park some cash for the short term where it won't lose money to inflation, but typically after you pay taxes and take inflation into account you make little or nothing with CD's. If I were investing a few thousand dollars I would look at a mutual fund that wasn't bound to one particular sector. There are some great funds out there that can invest anywhere the managers see a good opportunity. The fund I like for this is called the ivy asset strategy fund it can go in stocks, bonds, international, currencies, commodities, wherever the fund managers see a good opportunity.

And for those suggesting a Roth IRA, I agree; however, that is a type of investment vehicle not an actual investment.

With only a few thousand, I would advise a CD with 5-6% turnaround. Or you can invest it in an IRA.

Or if you dont mind possibly losing it, you can play the stock market.

Usually your bank will provide you a free financial advisor meeting, so you can talk to him to see how you cna maximize your savings.

Etrade is fine much like schwab and fidelity.

If you are interested in exploring the stock market...I recommend you start with mutual funds -- to get your feet wet. You can even start from a Money Market -- which is typically better than a cd. Then start learning what mutual fund you want to get into.

Most important is the value of this money? -- is it for your retirement ? Could you put it away for the next 10/20/30 years? If so, depending on your age/risk tolerance--you could put the money in a retirement account..and enjoy the tax benefits instead of paying taxes on the interest of a cd.

It is a big world..the investing world that is. I'd recommend you start with Fidelity..for that matter. call a rep and talk about your options. 1 800 - Fidelity. (schwab/etrade -- are second best). in my opinion.

good luck...and happy investing.

etrade, ameritrade, and all those are very easy to deal with. Buying and selling individual stocks can be risky, though, so make sure it's money you can afford to lose.

If you're happy with a lower return but no risk, try a money market or CD. It's easy to find money markets these days that pay more than 5%, so don't go with a CD that pays less. There's no point in unnecessarily locking up your money.

You really should start putting some money away for retirement. A RothIRA is best if you have no other retirement investments going.

If you're only 20 years old and put a $1,000 away in a Roth IRA, at age 65 it'll be worth $32,000. That's 32X your initial investment and can then be withdrawn tax free! I'd strongly recommend to everyone to put at least some money away every year as early as possible for retirement.

If you continued to put only $1000 a year away (which is VERY VERY little), and started at age 20 and averaged 8%, you'd have $354,000. 10% would get you $646,000, and 11.5% would get you a cool million!

Well it would depend on what you are saving for. If it is for something other than retirement the stock market is pretty volitile. I would stick with the cd for short term investing. Its consistent interest and won't be subject to market fluctuation.

Take out enough to buy a copy of "Investing For Dummies"

Learn about investing and investments
It will be money well spent.

You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planni...
http://www.dallasnews.com/sharedcontent/...
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetalloca...
https://flagship.vanguard.com/VGApp/hnw/...

There are few things that you should consider before investing.How long you want to invest for? what kind of return you are looking for income or growth.If you are looking for high returns then invest in shares.
check the link below to learn more on investing in shares.

http://www.smart-investments.org/Best-St...

http://money-review-site.com/shares.html

CD's are not good. Ever heard them called Certificates of Depreciation. You should invest in real estate.