Then look into other retirement accounts such as an IRA – Roth is usually considered better if you are eligible to make contributions, but you should look into both Roth IRAs and Traditional IRAs to determine which is the best for your needs.

If you will need money in a few years for a major purchase like a house or car, then consider starting a CD Ladder or putting your money into a high yield savings account. You don’t want to take too much risk with money that you will need soon.

One doesnt even a lot of $$ to do ‘drips.
Other than the intial start of shares, it can be free (other than shareprice) to drip.

Drips are where you buy a set amt of $$ each month of 1 or more stocks and always the same amt. Ie; Like I did, started with $50/mth to buy 2 stocks and now doing $500/mth to buy 6 stocks).

Example: buying $50 of GE whehter its the current $9/shr or $40-$80/share .
Reinvest of divends too.

You can do this direct with a company in many cases, but can use the following website to have it do it for you ($25 fee for members). But going direct can be virtually free but requires more initial shares.

I do it both ways, and I still use both EDWARDJONES and also sharebuilder too depends on what I need and whether I want to do instant buying.

Note that drips are also scheduled buys, in that u buy on a certain date every month, no matter what happens. I use sharebuilder often to buy normal extra shares when I get lucky enough to time the market.

money paper com was one research source.

Afterward, go IRA or externally and do tax advantageed investing or even other good investments (trick is figuring out what is and what isnt).

Note, that if the 401k has no company contribution you should instead go IRA in full (never do a noncontributive 401k unless the numbers show value – rarely do).

Also in light of potential company failures, never do a internal 401k type of plan.

Internal – think Enron .

External – I worked at American Electric Power and my 401k was Fidelity.com for the whole 8+ years I was there.

Reason, internal the company can steal your 401k $$, while externally once they send the contribution they are out of the new $$.