Want to invest $1000 in 2 different types of funds seeking advice?

College Student with $1000 to invest. Want to invest $500 in 2 separate funds- one which will see growth in about 2 years and one that will see growth in about 5 years. Index funds and Intermediate term bond funds have been suggested. Am I not investing enough to see growth? ALSO I've been investigating Vanguard as my investment company- good choice with the small amount of money I plan on investing? ALSO where can I find a good financial advisor (no cost if possible) Any advice would be helpful.Want to invest $1000 in 2 different types of funds seeking advice?
Index funds were actually a great suggestion. Vanguard is also one of the best (in my opinion THE best) mutual fund/investment companies out there.





Their fees are very low for their index funds. Which is critical in the long term.





An easy formula is to take your age. That is your bond allocation. Subtract from 100. That is your stock allocation.





ie, 20 year old has 20% in bonds, 80% in stocks.





S%26amp;P 500 Index is great


Vanguard Bond Index is great as well.





I would allocate 80/20 into those with $1000.





The reason that people are steering you to the index is that over 80% of paid professional money managers, those men and women who make millions, will not beat the market (S%26amp;P 500) over time.





Also, those managed funds have higher fees because you are paying for active management.





Not to be insulting, but any financial advisor who would take you on as a client would be fleecing you. They are paid either by comission by the funds they sell you (clear conflict) or by a percentage of your assets (the better you do, the more they make).





I worked in finance for a couple years, and for those starting out, I offer the same advice.





Vanguard S%26amp;P 500/Vanguard Bond Index. Base your allocation on your age. If you want to be more aggressive, increase your stock allocation.





Let it sit there, and put in 50 a month into both. By the time you hit retirement, you should be a millionaire. (assuming you are 20 years old)Want to invest $1000 in 2 different types of funds seeking advice?
Check these stocks out and start your own mutual fund just for yourself.


http://biz.yahoo.com/kiplinger/070611/ip鈥?/a>
I suggest you to invest in Sony and Nintendo and you will be fine.
With Vanguard you will need a minimum of $3000 to start most of their funds. I think their STAR fund is the only exception to that.





With a 2 year time horizon, you will want to stick with a money market account. With a 5 year time horizon, a total bond market index fund with duration about 5 years will do the trick. IMO, 2 and 5 years is too short to invest in stocks. You will need at least 10 years to get the most benefit from a stock fund.





But, don't worry so much about growth. You are young and still in college. There are so many unexpected expenses that will arrise in the next few years, not only with college but getting a job and moving out on your own. You may want to consider keeping your money in a liquid and conservative account, like bank CDs or a money market account, until you are established at your first post-grad job. Then once you are set, sign up for your company-sponsored retirement account and/or an IRA.





No-cost financial advisors usually work for a particular investment firm and have a conflict of interest. The best financial advisor is the one starring you back in the mirror. You need noone other than him. Only you can decide the right course for your money and how much risk you want to take. The only thing is that you will need to learn some basics. Check out a few good web sites for some free and unbiased information:





http://www.invest-for-retirement.com


http://www.investopedia.com





Take the time to learn the basics of investing, because these fundamentals will not change. Then, you will be able to use that knowledge for the rest of your life.