Stock Tips for Bargain Hunters

Look for minimal fees and free trades to help you save money
By Kristina Loew,  Newser User
Posted Nov 9, 2008 7:04 PM CST
Stock prices are shown at the Nasdaq MarketSite before the start of trading Friday, Oct. 24, 2008 in New York.    (AP Photo/Mark Lennihan)
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(Newser) – While stocks have sunk to their lowest in years, there's a silver-lining for penny-pinchers. “Buying into the slumping market today should pay off big time when it finally bounces back,” reports US News and World Report, which offers 5 easy tips to get you started.

  • Index funds: Minimal fees make indexing “an easy way to buy the entire market for pennies on the dollar.”
  • Exchange-traded funds: Index funds, “with a twist.” Discount houses offer 10 free trades a month to those with a minimum of $2500.

  • Thrifty active funds: The name says it all. Mutual funds that keep expenses low can be a good bet to do well in the long run. Plus, these funds manage to pull it off with a “real, live stock picker”.
  • Boost 401(k) contributions: Sure, easier said than done, but if you can horde a little cash and throw it on the pile, you’ll be pleased you did. “Consider it a future gift for yourself.”