Expert: Dr. Joseph de Beauchamp - 11/9/2005

Question
Hi,

I am a graduate student in my first year in optometry school. I have always struggled with money issues, but am doing better. A few months ago I paid off a huge credit card balance, so now I'm almost debt free (except for my student loans).

I signed up for an "automatic savings plan" with my bank and plan to save at least $500/month. I want to invest the money, but don't have a clue where to start. I heard roth IRAs are good, as well as "money market mutual funds," and certain stocks/bonds. However, I don't know any specifics (e.g., how to sign up for these things, what to purchase, how to research them, etc.).

Also, what do you think of investing in real estate (e.g., condos, foreclosures, REITs)? Can I really buy a house "no money down" or is it better to wait until the market cools off? Do you think the "bubble" will burst?

Looking foward to hearing your advice.

Thanks,
Francis

Answer
I do better with one question at a time. Save your money in the bank until you have 6 months living expenses. Read Valueline in the public library for free. You can also get some information on http://wfnn.info or http://freestock1.com  --but for now build up cash. Do not speculate on the real estate market until you have cash for 6 months.

Dr. Joseph de Beauchamp