Engineer - That's why I generally buy indexes. Individual stocks are too much work unless you really know what you're doing.

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Based on my level of understanding, I would personally invest a sizeable proportion of my investment portfolio into a market proxy index much more readily than into a managed fund. But since I don't have much financially, and the current state of the financial economy, I think I will continue to ssave my money. Perhaps I'll look into a term deposit or something.

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Engineer - After much research, it appears to me the best way to get rich is to do what everyone else isn't doing. Stocks and real estate are both depressed right now, which makes both a good investment for a long term buyer.

When will they go back up? I don't know. My crystal ball is broken. But you're very young, and if you bought a solid index (like the one you mentioned is fine) and hold it, you'll do well.

I personally like DIA. It's the Dow Jones index. You trade it like a stock so it doesn't have a manager like a mutual fund does, and currently it has a 3.87% dividend which I have reinvested into a DRIP (Dividend Re-Investment Program).

Right now, even the best online Savings accts are only paying 2%.

When everyone else runs out, that's when I come in. I was stoked when I saw the Dow below 7k. That's like seeing Gold at $350 an ounce. How can you pass that up?

There is also some truth to what 4Pack was saying. It's a good idea to have a lot of things liquid, so if you need that money in a pinch, you can get to it.

As for savings, be careful. The majority of savings accounts have a lower yield than the inflation index. If so, you are actually losing money by saving. Of course, it's always nice to have 3+ months of savings, especially since you're an Engineer and you WILL be laid off at least once in your life. I've been laid off 3 times, twice by companies buying out the company I worked for and once by my company being no longer profitable and having to go through round after round of layoffs. Layoffs are a reality and you should always have an emergency savings account.

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Here's a few tips..

Great time to buy into the market. (although you have missed a 20% rebound the last six weeks or so).

Just make sure you are diversified.

Land is Illiquid, meaning as 4Pack said, you can lose greatly if you need the money quickly. I wouldn't put more into a home either as the loan rates are low.

Zombie is pretty astute with his observations regarding the market (not the land) . Make sure you diversify and allocate according to your goals, timelines, and fluctuation tolerances.


Never have more than 10% of your portfolio in individual stock.

Call your mother at least once a week

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