Expert: Dr. Joseph de Beauchamp - 5/19/2007

Question
QUESTION: I am on SSDI, cannot save any money due to the cost of living. I roughly get $1400.00 a month and pay $850.00 for rent. Is there any possibility of putting a little of that income into a stock/share and actually making money off of it? How do I do it myself without a broker being involved?


ANSWER: Not a good idea for several reasons. I have never recommended stock to anyone, unless they can diversify the risk with 10 different 100 share positions. A mutual fund is the only route, but even here I do not recommend this. I think the market for mutual funds is risky right now, and the market can go down. Possibly the best solution is to go with US Savings bonds --HH series. These pay an income. You would need to go into your local bank and buy these. There are no commission on the HH bonds and can only be found at a local bank. I think you will make more in the upcoming years, and have no cost of purchase. The bank is the only place since they have no commissions to a broker or salesperson. You can also purchase these for $25 or more each time.

Dr. Joseph de Beauchamp

---------- FOLLOW-UP ----------

QUESTION: How long ,generally speaking, does it take for a bond to mature; to generate an income and how much income does it generate per month? Please explain details.

Answer
You can allow the US Savings Bond HH to just about any schedule for maturity and income flow. There are ways to liquidate these bonds early. Best thing is to go into a bank and get all the information. This HH is the best "investment" for you, and beyond the savings rate. Savings account is not such a bad thing either.

Dr. Joseph de Beauchamp