the_paulr (the_paulr) wrote in personal_roi,
the_paulr
the_paulr
personal_roi

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Where to start?

So let's say the debt is gone, or at least it's under control. Either way, it's not a problem. And let's also say that there's some "found money" floating around (like a little extra cash left over after refinancing the mortgage which is what took care of the debt). Let's say there's about $500 that needs a home.

So now what? It's not much, but it's a start. So where should I put it?

I could stick it in a regular savings account but those are paying lousy returns right now. And yes, we need to have some money in savings for emergencies, but $500 won't do much, so I'd rather invest it.

I could stick it in an on-line savings account with either ING or HSBC - last time I checked ING was paying 4.5% and I think HSBC was a little higher. That's a lot better than my local bank, but it's still just a savings account.

I don't know much about CD's. (The non-musical kind that is. Come to think of it I don't know much about the musical kind either, but that's for another community.) I know a little bit more about mutual funds. I also know there aren't that many funds you can get into with less than $1000. And what are exchange traded funds?

I suppose I could get a brokerage account and start buying and selling stocks but I'd probably pay more in fees than I'd make in profit. Plus for all that I've seen and read over the years I really don't understand the stock market well enough to want to play it.

So...

Does anyone have any thoughts about where to start with a small amount?
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