beggining investing

May we first ask, is the 6% to the 401(k) because that's the amount that captures the most employer match? You should put in enough to capture the match. Then, I trust there's no credit card, high interest debt?

A low cost index fund is the way to go, S&P 500 or a "total market' wilshire 5000 type of fund. What ever balances out the 401(k) and IRA investments. You have one portfolio, it just happens to reside in different accounts. You should use the two non-401(k) accounts to provide a balance among the investments. JOE

I would suggest that $3K is not enough to be well diversified for picking individual stocks or individual funds. As a result, I'd suggest looking into an Exchange Traded Fund that tracks one of the major indexes. I happen to like Vipers. Buy with a very low cost discount brokerage to minimize the trading costs. Build a very solid base of index funds, then branch out later with a little money to take a few flyers here and there.

-john-

I'm no expert on investing, but I think the first question you have to answer is this: what do you plan to use it for? Retirement? A future purchase? A rainy day fund?

The answer will depend on that because different investments are appropriate for different purposes. The longer time until you need the money, the more you can tolerate risk. How much risk you can tolerate also depends on what you need the money for. For example, in certain situations, self-employed people know they will owe a lot more money in taxes than they were required to send in in quarterly estimated payments. Obviously, in such a situation, you want a low-risk investment because the negatives of losing money far outweigh the positives of increasing your return.

- Logan

Before investing pay off your high interest credit cards.

Also have clearly defined and honest to yourself financial goals developed.

Second that - you need a financial plan with financial goals related to your lifetime goals. For example, are you married or plan to marry? Do you plan more education for yourself? When do you plan to retire? I am old and retired but I still have goals with 10 year time horizons. As Logan pointed out the purpose of the investment will determine in which mutual fund to invest.

Good luck, BeachBum