<prompt> Human: So my friend want me to invest around 1000 for him and make it grow. I have personal experience for about 3 years with active investing and have relatively good returns.He has offered to pay me a small amount of money monthly to do this. I need advice. How should I go about doing this and what are some precautions I should take?  <response>: I would avoid this scenario like the plague. It is one thing risking your own money and another to risk someone elses money and a friendship. Also if you invest it in your own accounts taxes and gains become conjoined. It is essential that they own their own investment accounts with their own social security number. That all being said... the simple and boring way to become rich lately is through the use of index funds. Have him park that money for ten years in Charles Schwab under SP 500 Index fund. The expense ratio is extremely low .03. Make sure they are comfortable with the fact they may never see the money again. Make sure that they also invest the money themselves. 