How do you invest your money after you recieve your refund?

This may be the only time once a year that you receive such a large sum of money; a lump sum large enough to make a significant difference in your future earnings potential; but not if you spend it. Think of it as spending your future. You are on the right track in thinking to invest it.

The best way to do anything yourself is to learn something about it first. You'd be surprised at the thousands of books available on this one subject at your local library.

But most people spend more time deciding the color of their new car, than they do on a mutual fund advisor, for example.

Are you really wanting to do this yourself, or are you asking about someone who is an expert who can do it for you? If you're asking about a mutual fund, check out Morningstar.com

If you invest in the stock market right now yourself or with a mutual fund, or just buy into all the ETF's you can afford, it's a crap shoot, like rolling the dice, and the odds are probably not in your favor, whether you have an expert fund manager or not, because mutual funds are always "in" the market.

They say "Buy and Hold" for the long term is better, but that depends on when you get in, and what your definiton of "long term" is.

The Dow is now approaching all-time highs last seen in Jan 2000, so if your long-term definition is more than seven years, then you won't mind waiting another seven years for a profit.Those people that bought stocks in 1999 are still waiting to get back to even.

In my opinion, the name of the game is capital preservation. You don't invest when the market gets too risky or too frothy or is nearing a market top or an old market top, or when the market is overpriced, or unstable, and all of these things are true today. There really is a time when cash is King. That 1.5% CD is going to look pretty good when everyone else is cryin' in their beer about losses. Or the market could just go sideways to work off the excesses, but either way, you're safe if you're out. Wanna trhow the dice, go to Vegas.

This is simply not a good entry point for investors. Be patient, wait a few months, and you'll be able to buy much more stock a lot cheaper, the risks will be lower (even though they will seem higher), and your chance of success greater.

If you wish to research the 鈥淏uy and Hold Strategy鈥?further, or perhaps trade yourself, I recommend two book titles. One is called "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to think about.

Mutual funds.

It depends on your goals, how much risk you are willing to take, and how much you have to invest. I do agree that mutual funds are a good place to invest money, but watch for the fees and the fund's expense ratio (you want a low expense ratio). There are also minimums on most mutual funds; ranging from $500-$5,000 for non-retirement accounts. If your young, and can sit on your investments for a long time, you may try the stock market. You can trade stocks through www.sharebuilder.com only a $4 per automatic trade fee. But on the other hand stocks are hard to pick, it's usually easier to let the mutual fund companies pick the good ones and put them all in a fund for you. If you want income, try a CD, money market fund, or a high yield savings account. No risk and better returns. Try an online bank if you want to take this option...virtually no fees because they don't have to pay to maintain a physical location. I have a savings at www.emigrantdirect.com and they have one of the highest yields in the country right now...4.5%