Investing - Getting Started Advice

[Gared]

Ok, so I just recently got a new job after being unemployed for 20 months, and with my new salary and my fiancee's hourly wage at her job, once we dig out of a slight hole caused by my unemployment checks running out two weeks before I got hired on and the delay in my first check coming in, I'll be fiscally solvent within about a month and a half to two months. If we stick to our budget, within an additional month or two we should be able to put some money away into savings for emergencies and incidentals (I want enough money in savings to cover the deductible on my car insurance policy and about $1000 dollars extra just in case something comes up).
Once I've got that much in savings, I want to start investing my money somewhere. I abhor the thought of having money sitting around doing nothing (the interest rate on my credit union savings account is really low). My question is, having never invested anywhere before, where do I start? Do I dive right into the stock market with an eTrade account, should I find a broker, do I stick to mutual funds, invest in T-Bills, play the commodities market, what?
I'm not looking for tips on specific stocks or mutual funds, I'd prefer to do my own research on details that specific, but does anyone around here have an investment portfolio and/or know how to get started? I wouldn't be able to invest tens of thousands of dollars a month, but should be able to get around $10 to $20k a year invested.

 

[sixpackshaker]

First build a generic savings account that has at least three months pay. Put a bit into a CD at your bank, I have around $3k there, I use it as a source of cheap loans. Like if I get sloppy with some credit cards, I have a loan that will come out to 4% instead of the 21%->30% offered by most cards.

After those two goals are met, start looking for Stocks and Bonds. I can't help you on that account though.

 

[Gared]

Sounds like solid advice. I may have to find a new credit union though, this one screwed me recently. Well, technically they screwed me 7 years ago, but it only just recently affected me. My current account, which I've held for about 15 years was in the red for a few months 7 years ago, and even though I paid off the overdraft balance and the account is still open, becacuse I closed the Overdraft Line of Credit (several years after paying off the balance) they marked it as charged off. I tried to refinance my car through them and was told that they couldn't lend to me due to my previously charged off loan, and then refused to discuss the account with me.

 

[Adam]

Depends on your risk appetite. See if your CU offers index-linked term deposits. Your principal is guaranteed but you get the added advantage of getting some better returns because of the stock adjusted rates. That's a nice start into the market.

Mutual Funds are a fairly safe bet. If you have pet causes you're interested in, you could also look at funds dedicated to those topics. Things like Ethical Funds or Socially Responsible Investments.

I bought stocks that paid a dividend and I use their dividend reinvestment program. Every quarter I get X amounts in dividends that go into buying more stock, pretty easy process.

 

[Emrys]

I invest in a range of small-cap funds (Canadian and American), ethical funds, and mutual funds. The return on these is medium-high but they are also sensitive to market fluctuations. Since I'm not anywhere close to retirement, I'm not worried about it because statistically, the funds will increase with time. I also invest in Canadian bonds for their guaranteed return and use them as a way of saving for a big-ticket item (i.e. down payment on a house).
I invest through Investors Group (I don't know if they are in the US as well). I pay a fee for their service but I don't have to keep as close an eye on my investments. I meet with my advisor quarterly and discuss how the funds are doing and if any changes need to be made. I consider the service to be well worth the payment since it leaves me with time to deal with everything else going on in my life.

 

[Cajungal]

My dad's setting me up with someone who can help me do a Roth IRA right now. I'm lucky; we have a few family friends who are brokers and can guide me through it, and I know I can trust them. I'm planning on going minimally aggressive at first and sticking to safer things. No idea what... I still have to meet with him. I also have that and a CD that's my parents opened for me when I was a kid.

 

[Gusto]

I invest in a range of small-cap funds (Canadian and American), ethical funds, and mutual funds. The return on these is medium-high but they are also sensitive to market fluctuations. Since I'm not anywhere close to retirement, I'm not worried about it because statistically, the funds will increase with time. I also invest in Canadian bonds for their guaranteed return and use them as a way of saving for a big-ticket item (i.e. down payment on a house).
I invest through Investors Group (I don't know if they are in the US as well). I pay a fee for their service but I don't have to keep as close an eye on my investments. I meet with my advisor quarterly and discuss how the funds are doing and if any changes need to be made. I consider the service to be well worth the payment since it leaves me with time to deal with everything else going on in my life.

My consultant through IG is my best friend, and his dad is the Regional Manager, and apparently well known throughout the company.

Right now I'm only earning enough to make due with a TFSA but it's been doing wonders for me over the past 9 months or so.

 

[PatrThom]

Check to see your amount of debt. Putting an extra $50/mo towards paying off a 14% credit card for 10 months will 'earn' you more money than putting $500 into a CD earning 3% after 12 months.

--Patrick

 

[Gared]

I have a ridiculously low amount of debt. Aside from my car loan, which I'm already working on refinancing and which I want to keep around for a while so I can keep my credit rating going up for all of those "pays on time" reports, my total debt is less than $1k. But yes, if I had a larger amount of debt, I'd throw in paying it all off before starting to invest.
Update:
Whoops, remembered over the weekend that the investing stuff would have to wait. Bettin' my fiancee would like to save money for our wedding/honeymoon.