Where to Put $1,000 Right Now
You're out of school and you have a job, or your kids are finally out of school and you have some extra cash now that tuition payments are gone. Or maybe you've simply saved up an extra $1,000 and want to invest it. Where should that money go? Good news: You have multiple options.
Invest in an ETF. These funds track an index, which gives you a diversified exposure to the market, all from one simple investment. Whether it's $1,000 or $10,000, it's all about percentage returns. Is your money keeping up with the market? This helps you get a feel for investing while cutting down on risk. It's probably best to place the full sum into an ETF that tracks the S&P 500. Diversifying $1,000 won't leave you with much in terms of shares per position. Instead, consider something like the Vanguard S&P 500 ETF. It's the start of learning to invest in a strategic way. You can then study the companies within the ETF and start getting an idea of how it all works.
Say you want to try to make your $1,000 really do some work for you. You probably won't be able to get splashy results by simply investing in an index, and you want to find one stock that has big upside potential. It might be temping to try something in the small-cap or mid-cap range, but there are higher risks and deeper research involved in these sorts of companies. If this is your first go-round, it's still wise to stick to a bigger and more established business. My advice: Stick to the basics. Find a good industry and invest in a company with a long history of earnings growth. And you might not even have to forgo big gains: Apple (NASDAQ: AAPL) gained 103% over the past year, far outpacing the S&P 500.
Source Fool.com
