Expert: Steve Hach - 3/3/2009

Question
im have an excess 1000 dollars what should i do with it

Answer
Jon,

If you have a bit of money saved away the first thing to do is pay any outstanding debts--especially high interest credit cards.

If you are investing for the long haul and not concerned about short-term losses, then I would consider an index ETF that tracks a broad market such as the S&P 500.

Use an ETF rather than a mutual fund to save on added fees.

I would avoid any individual stocks right now from a long perspective due to the uncertainties of the market.

Of course, for zero risk, you could put the money into a CD or something.  There are many internet sites--do a search with google--that will provide information on the highest possible CD Rates.

Remember that there are no real get rich schemes and that you will find lots of info about penny stocks and other scams, avoid buying stocks based on internet chat room rumours and gossip.

Best,

Steve