Q.
I only have $100 a month to put towards investments. Is that enough, what kind of investments are best for this amount?
A.
Yes, but is a C-note really all you can cough up? Cut your phone service and just use a cell if you need to scrape up extra cash. When you're ready to invest, choose a broadly diverse mutual fund that uses asset allocation modeling. That means you’re going to get a diversified portfolio even with an initial small investment. Plus, because these asset classes react differently to market fluctuations, this will reduce volatility and increaese your returns over time. Helpful hint: Each month, have all subsequent investments set to automatically come out of your bank account and be deposited into your fund so you’re not tempted to reinstall that landline.
Nestpert Bryan D. Beatty, a CFP in Vienna, Virginia
-- Caitlin Losey
Jun 14, 2009
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