"At that stage in life, $1,400 seems like all the money in the world," says financial planner Tim Maurer, co-author of The Ultimate Financial Plan. So don't risk big losses that could scare her away from the market forever.
A balanced fund -- one holding both stocks and bonds -- should provide smoother growth than pure stocks.
A good pick: Vanguard Star ( , which comprises 11 Vanguard funds and holds everything from international stocks to short-term bonds. The minimum buy-in is $1,000 -- unlike many other funds, low enough for your situation. )
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|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.48%||4.38%|
|15 yr fixed||3.49%||3.42%|
|30 yr refi||4.47%||4.37%|
|15 yr refi||3.48%||3.41%|
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