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- - $5000 to invest (http://archives1.twoplustwo.com/showthread.php?t=489699)

Re: $5000 to invest

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Index funds have the same expected returns as individual stocks, but with much less risk.

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If you do your homework, individual stocks can beat the market with less risk as well.

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That's correct. The vast majority of people who do their homework, beat the market and get rich. Which is why we have had to ship so many jobs to other countries. Nobody is willing to work, as they are living off of their great profits from doing their homework.

It also explains why investments into mutual funds are steadily decreasing. More and more people are realizing how accessible the info is that they need to do the proper homework in preparation of beating the market and 80% of all the mutual fund managers.

Re: $5000 to invest

I won my 6th grade stock market contest 18 years ago buying nothing but berk. [img]/images/graemlins/heart.gif[/img] buffett

Re: $5000 to invest

Screw education.

Unless your a bright guy, or a hard worker, your education will prolly get you a 9-5 job, where you are working for someone else.

IMO, while your young, try to learn to make money for yourself. Like the folks on digital point. Or any entrepreneur site.

OBV education is good. I am going to college. However, it is not the only road. We have been programmed to think it is. I would say:

invest the money, and try to raise capital for education somehow (job, etc...). If you are going to college, chances are it dosnt cost much;

SJSU (california state) is like 1800 a semester. 3600 a year + maybe 500 for transportation and books. (a lot more if you live there). Now Big university and Private are a diff story. SO teh question is can you afford to invest 5k and then pay for college.

Hell, I'm sure you can get into some type of program that reduces costs of education.

Anyway, I'd say look for mutual funds if your not gonna be dedicating a lot of time to your portfolio. Just pick a decent vanguard or two. Maybe put 30% in some foreign fund for some more excitement.