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Subject:  Help needed on investing strategy Date:  6/18/2005  3:40 PM
Author:  kfidei101 Number:  15 of 20

I am a 42 year old single mom with a well paying job and a kid on her way to college in two years, and only about $35,000 saved for retirement (I started late - was in school doing a Ph.D. for many years and never got the financial education as a kid to tell me to invest early even if it's a little). Oh well; I'm trying to make up for it now. I'm also an outdoors person and animal lover (irrelevant but interesting).

I wonder if anyone has any advice for me on the best way to use newsletters. I subscribed to three to evaluate which to follow - Hidden Gems, Rule Breakers, and the MF Stock Advisor. They each have a different focus area that makes sense.

I have about 1200 to invest each month (that's after I put about 1600 per month into retirement funds which I just consolidated into a Vanguard equity index fund for free through my employer).

But how to break down the stock investments per the newsletter pics? I like the perspectives of each of the three, and my thought is to put most of my money into Rule Makers, and then some into Rule Breakers and Hidden Gems.

My initial plan was to invest about 50% of my 1200 each month into the two picks in the Stock Advisor, since those seem to be safer Rule Makers. Then I plan to invest the remaining 25% in Rule Breakers, and 25% in Hidden Gems. I did that last month.

However, my question is this - given the small amount of money I invest each month, am I right in distributing it in that way? Or am I undercutting my chances of good returns by investing so little? I know Tom and David say "you have more than you think," and yes, I am committed to putting in that 1200 each month, I just need to know the best way to leverage it.

One modification that occurred to me is to keep an eye on what I've already invested and buy more of it as I go when it goes down due to market hype (vs. a problem with the company that's not likely to be solved, like a product pulled from the market or a patent denied).

The other option is to pick on a few companies to put my money in, so put more in; however, the risk there is I pick the wrong ones. Some will go down, some up, so I'd like to follow David and Tom's advice of investing across the breadth of their picks. Would it be better to just rustle up more dough each month? (that has it's limits, obviously, but I could potentially add $800 more).

Thanks to all for any advice you have,

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