Shopping for a retirement account can be very time consuming and sometimes even confusing. Personally, it took me over a month to find the right place to open my retirement account. Because I am so nice to the devoted eFIPO.com readers I will breakdown the best places for you to start your retirement account.

Before you start shopping, you need to ask yourself some basic investing questions. Here is a short quiz, designed by yours truly, to give you pointers for your investing future. It’s like a Cosmo quiz (for the ladies) or a FHM quiz (for the men). If you answer them based on your independent lifestyle it should give you some good information. So answer them truthfully.

You have to go to http://www.efipo.com/20060914/74/ to take the real test and get your results!

Where should I invest?

1. Do you want to learn about investing?

Yes. I want to read as much as I can about investing
I will read some, but I just want to get started
No. I want everything done for me
2. What is your risk tolerance?

High. Expecting long term growth
Medium. I do not like huge market fluctuations
Low. Slow and steady
3. How much do you want to invest now?

More than $10,000.00
More than $5000.00, but less than $10,000.00
Less than $5000.00
4. How much do you plan to save on a yearly basis? (Invested monthly)

Over $300.00
Over $200.00, less than $300
Less than $200.00
5. How much do you expect your investment to grow on average yearly basis?

Over 15%
Over 10%, less than 15%
Under 10%
6. Do individual stocks scare you?

Yes! They go up and down too much!
Hell no! The stock market has always been the place to make money
Not really, but I like to keep it simple
7. How many books are you willing to read about investing?

Less than 2
3
More than 3
8. When do you plan to retire?

30+, but less than 50
Regular retirement age
Less than 60. Probably late 50’s
9. How much do you plan to have when you retire (with inflation)? Be realistic!

1 million - 2 million
More than 2 million less than 4 million
More than 4 million
10. How well educated are you when it comes to the stock market?

More than most people my age
Less than most people my age
Average

Nice! You completed the test. Click on the “Grade me!” button to get your score. After you obtain your score, scroll to the bottom of this post to get my personal suggestions based on the question you answered. My recommendations will be broad, so I am just going to point you in the right direction. Always ask for professional advice if you do not feel comfortable with investments. This test was in no way to sell you any securities. Decisions based on information contained on eFIPO.com’s site are the sole responsibility of the visitor, and agrees to hold eFIPO harmless against any claims for damages arising from any decisions that the visitor makes based on such information.


What you should do based on your score.

40+ — With 10k to invest or more- Consider getting individual stocks if you are experienced enough to diversify your portfolio. I recommend using Sharebuilder because they have some great investing programs for first time investors.

—-With less than 10k to invest- Stick with mutual funds. You probably don’t have enough money to properly diversify your portfolio. INGDirect, Fidelity, and Vanguard have some great mutual funds to get started. I recommend getting in long-term growth investments such as: small-value cap funds, international funds, large cap growth funds.

30+, but less than 40 — Mutual funds, and ETF’s are the way to go. INGDirect, Fidelity, and Vanguard have some great mutual funds to get started. Go into sectors that you know about. They also have a MorningStar rating for the fund’s financial strength. Go with the highest rated ones for less volatility.

20+, but less than 30 — Mutual funds are sometimes referred to as plain, but they usually work. I still recommend using INGDirect, Fidelity, and Vanguard for your mutuals funds. Stick with large growth funds, large-value funds, and other sectors you feel comfortable with.

10-20 — Yup, you guessed it mutual funds. Invest using balanced funds, and large growth funds.

Recommended books to read about stocks and mutual funds
Rule #1
Jim Cramer’s Real Money
The Intelligent Investor
The New Buffettology
The Four Pillars of Investing