Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0

If you haven't read the 13 Steps under How To Invest above, I would highly recommend you do so before investing. Here is a direct link:

Next ask yourself if this $5K contribution to your Roth is the only money you will invest this year? Taxable brokerage? 401K with self-directed or brokerage?

If you have cash going to other investments, I might say yes to some small stakes, $1,000 or so, in individual stocks. No Rush If it was to take the whole year to buy those 5 companies, great. For a limited amount like this, I would suggest selecting companies very carefully. Penny stocks, No. Way too risky.

If this will be the only cash you have invested, go with an ETF for the time being. Build some savings first, then revisit the question on individual stocks.

In the mean time, study and learn. Knowledge will serve you well.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.