About victor mader Expertise I`m not a broker therefore I can assure that I earn no monies from my unbiased advice. I usually don`t comment on specific stocks but rather how to avoid getting "taken" by any unethical brokers, financial advisors, etc. I have 35 years of personal experience and stay well informed. My goal is to make you a better informed investor. I`ve been told by several stock brokers that I know more than many registered brokers.
Experience I spend an average of 1-2 hours per day reading about investments and have since 1965. I now have accounts at DLJ and Goldman Sachs, two very fine firms.
Expert: victor mader Date: 7/13/2000 Subject: I have never invested before, but I have $1100...
Question I was hoping to invest my money for a year and earn significantly more than just putting in the bank. I have no idea how to choose a broker or if I even need one. Perhaps, I could invest in a couple of stocks instead of only one? Would that mean more fees? I read in Smart Money tonight that United Technologies and General Dynamics are sound and should be increasing with more defense contracts, etc., in the next year. After that I will probably need my money for med. school living expenses. Thank you for any advise you care to give me. Sheila Gates
Answer Smart Money knows no more than anyone; in fact given enough time to read you'll find someone touting every single stock out there. With $1100 I'd call Fidelity or Vanguard, look under there names in Keyword) Ask for information on there Russel 2000 funds. Find out if $1100 is too little to invest.
Another good fund: Legg Mason Value Trust; look under www.morningstar.com for other good funds.
You don't need a broker and I would not pick your own stocks, you need to learn more. Buy a Russel 2000 fund if you can; very low management fees and they beat 90% of all funds.
Last, you may not make as much as you might have in a bank, stocks are risky..you could lose 20-40%, you could gain the same, you never know. In a tyical year one gains 12% But, there is no guarantee..you could lose.
Victor
