In your opinion, what is the best way to go when investing a one-time, lump sum of $1,000 to $3,000 for a long period of time?
The first thing you need to do is define "long period of time." For me, when it comes to investing, I consider a long period of time to be five years or more. In this kind of situation I'd suggest either a growth stock or growth and income mutual fund. I prefer mutual funds with solid track records of 10 to 20 years.
People sometimes like to play single stocks on one-time investments of this size. I don't think that's a good idea. Over long periods of time single stock investments don't consistently generate the kind of returns that a good mutual fund will generate. Why cheat yourself?
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