2k to spend, what should I do??

[Bartman387]

recently inherited 2k and am looking to invest it, possibly in a high risk high return stock or fund. WOuldn't turn down a long term investment, but would like to have alarger turn around than most.

What are some investments that people would suggest, the way to go about it (etrade or what?), and what are some of the better resources to use?

P.S. would it be better to buy large with one company or spread the wealth a bit?

[Uglyowl]

You aren't going to be able to spread the wealth with stocks with $2K as transactions costs will kill you.

You could invest in something like this, moves twice as much as the sector it is following:

ProFunds UltraBull Svc (ULPSX)

ProFunds UltraBull Fund seeks returns that correspond to 200% of the performance of the S&P 500. The fund normally invests a substantial portion of assets in investment techniques including stock index futures contracts, options on stock index futures contracts, and options on securities and stock indexes. It may also invest in securities that are expected to track the S&P 500. The fund seeks to achieve its correlation with the S&P each trading day. "This fund is non-diversified."

Do yourself a favor and start a Roth IRA (or make a 2K contribution to your current one if you already have one). I would not mess with equites, mutual funds, etc unless u have 10K min and some knowledge + experience. If you go for a risky high return investment, you'll likely end up losing it.

[Sniper]

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Do yourself a favor and start a Roth IRA

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A Roth IRA is simply an account type... OP still has to determine where to invest the funds.

best bet is get ira as the others said...

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A Roth IRA is simply an account type... OP still has to determine where to invest the funds.

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Thank you for clarifying. I should have mentioned that my IRA is self-directed, and I use it to purchase land and R.E. notes instead of investing it in the market.

[Bartman387]

thank you for the advice everyone, but isn't there usually penalty for withdrawing early from IRA accounts? Also, what are some good resources to do my homework and get a little more education on the subject? Motley fool? wallstreet journal?

[StickyWicket]

Motley Fool is good info, as is Morningstar(.com). If you want some easy-to read/digest articles, MSN Money is always reliable as well.

Yes, there is a penalty (hefty, which means 10% plus fully taxed at your current bracket) for non-qualified withdrawls from an IRA. IRAs are long-term investment accounts meant to be used to save funds for retirement, not for short or mid-term expenses/expenditures. The annual contribution limit to IRAs for 2005 is $4k, and a $2k contribution would be a nice start.

You should definitely read-up on the differences between a traditional IRA and a Roth IRA.

I'd be happy to address any questions you have. You can PM me.

Sticky [img]/images/graemlins/heart.gif[/img]