Before you put your money in any investment, do a sufficient amount of research. If you need to learn about mutual funds, there are plenty of web sites that can tell you everything you need to know. There are also seach engines that can find the mutual fund that is right for you. Yahoo! Finance has some great articles and engines. Get yourself a BIG mug of coffee, and start reading.
A wise decision! Since you don't have employer access to a 401K, perhaps consider a Roth IRA. This will allow you tax-exempt gain on any contributions, up to $2K per year. However, you cannot withdrawl this money until after age 59-1/2 without penalty (there are a few exceptions). If your single income is above $95K/year, there are restrictions on how much you can contribute. If your single income is above $110K, you cannot contribute to a Roth IRA. Max out your contributions to a Roth IRA for the first 10 years of your working life, and enjoy a fatty retirement.
The traditional IRA is the first one listed on their page. The Roth IRA is the second. The major difference is that the Traditional has fewer restrictions, but is tax-deferred (meaning you WILL pay tax on your gains). Again, the Roth IRA has more restritions, but is tax-exempt. There is plenty of info out there to educate yourself on these two retirement accounts.
Yeah you're right. My advice was bad. He should throw it all into NVDA stock and cross his fingers. Your personal experiences are not representative of the market as a whole. Fact: The average person who engaged in stock purchasing/selling of individual stocks will do WORSE than the market as a whole. Therefore it's quite reasonable to assume that the minority of investors who can consistently beat the market (of which they are few and far between) REALLY know what they're doing. Those people are not the average joe who just read a website about hot stock picks for the week.
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