How I did it: Talked to friends and coworkers and did a little internet research into the best investment firm to put my money in.  When I made my decision (T. Rowe Price) I looked at the different funds offered and picked one that looked reasonably safe and that had a small expense ratio.

Lessons & tips: Go with one of the bigger firms (Vanguard, T. Rowe Price, Fidelity, etc) and you'll be assured to enjoy a lower expense ratio (cost of your fund manager to actively manage your fund as a percentage of your total investment dollars).  Don't listen to the naysayers who say this investment isn't worth it; it's one of the best low-risk investments that exist.  Just understand that the returns you will make on it will underperform the returns you will make on riskier investments, and if you're feeling a bit aggressive and have the knowledge to back it up, feel free to push your portfolio to the aggressive side a little but by NO means ignore this investment just because it is conservative!

Resources: Communication with friends and coworkers and the internet.  There are thousands of blogs dedicated to financial advice, and I read up for about a week before deciding on one (don't stress yourself out too much, you want to get your money in ASAP so it can start building interest!)

Apr 27, 2009, 01:22AM PDT | 0 comments