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 Member 1200 Level 26.94 Mar 2006 
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Mutual funds are essentially collections of stocks merged into one group. While they don't have the potential to make as dramatic gains as individual stocks, they also don't have the potential to drop as dramatically; thus they are lower-risk investments than stocks.
Most funds charge managing fees to pay the salaries of the person who does the research to decide what stocks to invest the money in; these can be low or high. The lowest managing fees are almost always on index funds - funds which simply follow an index such as the S&P 500. My personal advice is to pick a nice mix of low-capital and high-capital and foreign and domestic funds - be sure to diversify. At the moment, a couple of solid choices would be the Vanguard S&P500 and Health Care index funds. Jam it back in, in the dark. |
Member 1200 Level 26.94 Mar 2006
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Assuming your income is about a certain level (varies depending on marital status and category of employer, and they're all reasonably low - $400 if you're self-employed, for instance) you HAVE to file federal tax forms no matter what, even if it is automatically deducted. Same with your paycheck.
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