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Most would invest in equities. However, borrowing money to invest in stocks is regulated and could be a problem.

Most would invest in mutual funds while they learn the market. An S&P 500 stock fund such as Vanguards 500 Index fund (ticker VFINX) or a total market index fund such as VTI are good core investments.

As you gain experience, most would branch out to include a growth fund, hot sector funds, an international fund, a REIT fund, and for the conservatives a bond fund. Adding a few stocks is possible as you become aware of good opportunities.

Usually you will want some kind of emergency fund to cover the unexpected. A credit card with borrowing capacity can cover part of this. A bond fund with check writing privileges can work. Low interest rates work against the traditional interest bearing checking account or money market account. How large yours needs to be is controversial. But think about how you would cover a $1000 auto repair. Credit card covers it til the bill comes in. That gives you time to decide where best to get funds from. Think about it and decide what works in your situation.
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