How should I invest $500

**disneysteve** · 02-07-2011, 05:45 PM

If you are self-employed, you can set up a retirement account. There is the SEP-IRA, the Simple IRA and even a 401k. Which is best depends on a variety of factors but if you are 25 years from retirement, you definitely need to do one of those things. Are you funding a Roth currently?

I never seem to time it right

And you never will. Market timing does not work. If you have $500 every 2 months, it should be fed into a diverse portfolio of quality mutual funds. Or you could take a more simple approach and invest in a target date fund appropriate to your anticipate retirement date. That would be the simplest way to go - one fund, one deposit every couple of months.

**AmySL** · 02-13-2011, 06:01 AM

I'd put it all on red every second month.
What you earn you put aside.
If you lose, you lost $500.

**littleroc02us** · 02-14-2011, 07:31 AM

You'll never win with that method. Invest longterm with Mutual funds.

**Tobby782** · 02-14-2011, 07:02 PM

Precious Metals

Inflation is coming at us soon. I would buy some silver coins from a reputable dealer.

**bjl584** · 02-15-2011, 11:07 AM

Originally posted by Gustav 2011 View Post

About every 2 months I seem to have an extra $500 that I would like to invest. I currently have an Ameritrade account with about 30 stocks that go up...and then down...and then up...and then down. I never seem to time it right and my overall total stays roughly the same. Sooo...I'm looking for something different to put my money into that can offer some modest returns. I'm self-employed and haven't ever paid into a 401k, so I don't really have much for retirement aside from my stocks. With about 25 working years left, I need to do something soon. What should I put my extra dollars into?

Gustav

Do you have an emergency fund? You may want to just keep the money in cash for a rainy day.

**NolaP** · 02-17-2011, 05:32 AM

Are all IRA's the same? I live in the Virgin Islands and we don't have much in the way financial advisers here. Can you start an IRA online?

**bjl584** · 02-17-2011, 06:04 AM

Originally posted by NolaP View Post

Are all IRA's the same? I live in the Virgin Islands and we don't have much in the way financial advisers here. Can you start an IRA online?

No. A traditional IRA is a before tax contribution (much like a 401K.) A ROTH IRA is an after tax contribution.

It depends whether you want to pay taxes now or later on your investments.

And,
There are several ways to get setup online. I believe Fidelity offers this. However, if you are new to this, then i would advise sitting down and talking to an actual person about your options.

**mmgarren@yahoo.com** · 02-17-2011, 06:40 AM

I would save it to an emergency fund or buy silver coins since inflation is probably be a problem in the future.

**wonderfulpittance** · 02-17-2011, 05:01 PM

I'd say put it into your emergency fund (if you don't have any yet)

Side note:
I can't understand why people push for buying silver coins. IMO, they're not as liquid as I want them to be. Just thinking out loud.

**Demetrius** · 02-18-2011, 02:51 AM

I have also seeking a similar advice and i am confident now to invest my money....there is very helpful discussion and the real solution of the problem.

**NolaP** · 02-18-2011, 07:20 AM

Brian,

Thank you for the advice. I will look to some friends for some words of wisdom, and I will check out Fidelity online.

Nola

**thomsoad** · 02-25-2011, 05:12 AM

Originally posted by Gustav 2011 View Post

I never seem to time it right and my overall total stays roughly the same. Sooo...I'm looking for something different to put my money into that can offer some modest returns.

Gustav

Stocks/Gold/Silver/Oil will all go up or down and you will never be able to time the market right. Stocks are long term investments that you have to hold onto to. Rest are commodities and you are hedging against inflation and fear. I dont invest in commodities but if I did it would be in rice or grains. At least they have a more practical use and not at all time highs. I see it as buying a house in Vegas in 2006... and how did that turn out?

Truth is this... you want modest returns then you are gonna have to ride the waves. You want higher guaranteed returns... pay off the mortgage (at least that interest rate is higher then bonds or a savings account).

**Hector** · 02-25-2011, 09:48 AM

First thing I will do is to follow Steve's recommendation and will start taking advantage of retirement accounts for self-employed.

If you think that 30 stocks you hold are not able to help you outperform market, sell them and open an account at vanguard account. There are two simple options
1. Open target retirement fund and keep adding that $500 whenever you have em
2. Decide on your AA and choose appropriate funds for that and build your portfolio accordingly. Keep using that $500 to balance your portfolio.

How should I invest $500