What’s my first step

[jafarz]

Hello ttlc,

while my spare savings accumulated just 4000 dollars I would like to know what would my next advise source be? I have the whole amount ready to invest with utmost confidence in my working capabilities. What are my next step to investing in companies such as Chevrolet or Cadillac...?

[bobweissman]

Open an account with a brokerage and transfer your money into it. If you're going to be self-directed and not want investment advice, choose a cheap online brokerage. Once the dollars are there, you can buy and sell whatever and whenever you like.

[marketstar99]

Your first consideration should be 6-12 months of living expenses in a bank or money market fund to cover unforeseen emergencies such as a job loss or large car repair.

You don’t want to risk having to sell an investment at a loss to cover an emergency.

Next, if you have interest bearing debt, you should pay it down as quickly as possible. For instance, if you pay off a credit card with 18% interest, you have effectively earned a guaranteed 18% return. You have no such guarantee in the stock and bond markets.

Once you have taken care of the two above steps, it will

be time to invest. According to CNBC’s Cramer, your first $10,000 in investable funds should be applied to an index fund before you invest in individual stocks.

One of the best index funds you van buy is the Vanguard Total Stock Market Index Fund. The ticker symbol for the mutual fund is VTSMX: the Exchange Traded Fund (purchased through a brokerage a count) symbol is VTI.

Good luck,

Marketstar