Help! Best way to invest a small amount of money.

catsareniice1 · January 2015

I paid off all my credit cards recently. Now I only use a rewards card and pay it off as I use it.

That said I have a few thousand dollars I would like to invest somehow. Is that a silly amount to start with? What are options I should look into?

vlagrl29 · January 2015

yeah I would put it into a retirement account and let the money grow.

hoffse · January 2015

Agree with the retirement account option.

In fact, I would open up a Roth and contribute for 2014... you have until April 15 to do it (assuming retroactive contributions are allowed on brand new accounts... I don't know for sure, but I don't see why they wouldn't be). If you do that, then you still have room to contribute in 2015 if you manage to save some more. The annual contribution limits are $5,500/year for each of 2014 and 2015.

When I've done retroactive contributions for the previous year I've done it online. I use Fidelity, and they simply have a place where you mark which year you want the contribution applied to. I'm pretty sure it also tracks how much you have contributed per eligible year, so you won't be able to contribute more than $5,500 under each year.

Xstatic3333 · January 2015

I agree with PPs, this could be a great time to start a Roth IRA if you haven't yet. There's a thread down this page with a lot of our recommendations about where to go. Most of us use Fidelity or Vanguard.

catsareniice1 · January 2015

Thanks so much for taking the time to respond! I think I will take a day or two soon to look everything over. I am clueless about investments.

I may have more questions. This is a great start!!! Thanks again!

Help! Best way to invest a small amount of money.

Re: Help! Best way to invest a small amount of money.

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