I am 22 years old and hopefully will be coming into some decent money in the next 3-6 months. At first I was thinking of a good down payment on a nice 03/04 Cobra or C5 ZO6, but quickly realized that isnt the smartest thing for me to do. I was wondering what a good way to invest some money is? I am totally ignorant on this subject as I have never been taught by anyone about the stock market or anything. Any brief beginners info you guys could throw out there would be great. I would want to leave the money untouched for a long time......like 20-30 years possibly.
Investing?????
- Thread starter KduncSS
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well do you want to literally not be able to touch it? or do you want it to be liquid when you might need it... you never know when you might be in a pinch... I would say a money market account at this point... the market isn't very stable right now. Maybe even open up a savings acct with a high interest rate or start a Roth IRA or some other sort of retirement fund if you haven't already done so.
I wouldnt want it to be totally untouchable in case of an emergency. How do IRA's work exactly? I havent yet set up anything as far as retirement. How much interest do they usually acquire? Sorry for all the questions, but I literally know just about NOTHING when it comes to this stuff lol.
Max out a Roth IRA...and continue to do so every year and you'll easily be a millionaire in years to come.
Personally, I'd take some of the money and take advantage of the housing market right now. I'm seeing REO's in our area that are easily appraising at 200k going for 150k...
Just do your research...buy some books...
If it is a LARGE sum of money, I'd look into hiring a personal accountant or portfolio manager...oh and DO NOT hire a commission person...look for a fee only investor
Personally, I'd take some of the money and take advantage of the housing market right now. I'm seeing REO's in our area that are easily appraising at 200k going for 150k...
Just do your research...buy some books...
If it is a LARGE sum of money, I'd look into hiring a personal accountant or portfolio manager...oh and DO NOT hire a commission person...look for a fee only investor
you shouldn't invest 100% ever, you should have enough to live on for 6 months~ if you cant then put this money up in CD's for easy access and no risk on losing it so you have it if you need it, then as you gain more money you can invest with that. If you are not maxing out your 401k then I would look at that first before doing much other
I should have my 401k maxed after this year and I can start on a roth IRA~ thats what im planning anyways~ only been working 2 years so far so not to bad overall.
I should have my 401k maxed after this year and I can start on a roth IRA~ thats what im planning anyways~ only been working 2 years so far so not to bad overall.
You have been listening to too many brokerage adds.
Yes you might be a millionaire, of course 1 million wont be crap in 30 years, you will need more like 5 million, but there is no sure thing. The best thing to do is to diversify your holding amongst several asset classes foreign and domestic. Getting into an IRA account will allow you to reallocate without tax penalty.
You might read the ultimate buy and hold strategy on this site, not a bad diversification method IMO with backup.
http://www.fundadvice.com/
One approach is to place the money in a series of CD (Certificates of Deposit) having different maturity dates. For example, I have a series of CDs staggered to mature in 5-month, 12-month, 24-month, and 48-month durations. The longer term CDs have an interest rate of 5%; the shorter term have 4.5%, 4%, and 3.75%. This strategy accomplishes several goals:
1. The principal is not at risk (you risk your investment in stocks and real estate)
2. The investment is FDIC insured
3. The return on investment is known, and doesn't "float" (unlike bank and money market deposits)
4. I can still get my hands on some cash (liquidity) by cashing in the short-term CDs as they mature, or roll them over if the interest rate is favorable (or move them to another bank if it's not).
Any investment advisor will tell you to diversify your portfolio, and to not place at risk any money you need to live on.
1. The principal is not at risk (you risk your investment in stocks and real estate)
2. The investment is FDIC insured
3. The return on investment is known, and doesn't "float" (unlike bank and money market deposits)
4. I can still get my hands on some cash (liquidity) by cashing in the short-term CDs as they mature, or roll them over if the interest rate is favorable (or move them to another bank if it's not).
Any investment advisor will tell you to diversify your portfolio, and to not place at risk any money you need to live on.
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I would invest in CD's and put it out for like 2 years and let your money grow or you could put your money into offshore banking where you money will grow big time out there... I put away $300k in an offshore saving account a little over a year ago and its already over $600k and still growing but I can't touch it until I'm 45 years old because thats how I set it up with my uncle.... This way I can retire early and not have to worry about money ever again...
Would you mind sharing where you can double your investment in one year? And for that rate of return, just what is the risk? The only places I know that offer that growth rate in the current economy are illegal and very risky.
CD's are a terrible idea when there are NUMEROUS high interest Checking accounts available right now. Why tie that money up for a year or 2 at a lower interest rate than a checking account????
Mine is 6.01%, I still contribute to my Roth IRA every year but currently am down. Which is expected due to the terrible market. But that will change.
Housing market is a good choice but be careful as i also was going to jump in but there are a LOT of fee's you dont take into consideration and you could find yourself getting into a bind when property taxes come due as well as bills for everything else.
Im 20years old, so i know where your coming from. Be smart and put some money aside
Mine is 6.01%, I still contribute to my Roth IRA every year but currently am down. Which is expected due to the terrible market. But that will change.
Housing market is a good choice but be careful as i also was going to jump in but there are a LOT of fee's you dont take into consideration and you could find yourself getting into a bind when property taxes come due as well as bills for everything else.
Im 20years old, so i know where your coming from. Be smart and put some money aside
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Maybe I should move to Wisconsin. Checking here gets you 0.62%; regular savings is only about 2.75%. Even with a "preferred" account and over $100,000 you only get 3%. Most of the banks here offer CDs from 3.75% to 5.25% depending on the amount and duration of the deposit, and to get the best rate you must open a savings and checking account (at the lower rates).
What bank gives 6%? And is that a fixed, guaranteed rate, or a "teaser" rate only good for a short period of time as an inducement to open an account?
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BronzeGod
Banned
This thread gets a bump and a subscription. Must learn more about this stuff. Thanks for the knowledge so far. Lets see some more!
Nope, 3 of our local banks offer it. They are slowly trying to beat eachother...Mine is 6.01% the other is 6.05% but that isnt enough for me to switch everything over exp with all the paper work.
Its guaranteed rate, actually there going on their second year right now with it. The 3 things you Must do to qualify are 1) Have direct deposit or have a bill paid directly from your account. i.e. I have my Gym membership taken out so that counts 2) You must have your Statement at the end of the month be sent to an email address. Obviously everyone on here has access to a computer so thats a no brainer. And you set up a Password to access the page, so dont get worried about it being sent to your email 3) You must use your debit card atleast 10 times a month. That is easy seeing as most of us use it 4-6 times a month alone of Gas. Each transaction can be as little as $1.00 so go to McDonalds and buy 4 burgers, seperate transactions and your all set for the month.
Also the best parts......Minimuim balance is $100 and they pay intrest on up to 25k in your account, but you can have multiple accounts if needed! :rockon:
I checked out their CD rates....4.75/5.15 <<<<its funny why someone would do a CD with their Checking rates the way they are.
in your case though, with low Checking/Saving account intrest %, CD's are a good option.
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You are never going to get anywhere with CD's, they are a safe minimum return instrument and they do not protect you from inflation like we have been experiencing lately. You should dollar cost average into a diversified portfolio taking into account the risk level you are able to accept.
I wouldn't touch a CD right now. Chances are that the fed will slowly begin raising interest rates within the next 6 months. CD Rates are pretty low right now.
I think your best bet for making serious money is to look at foreclosed properties. You will get rental income, and if you buy a decent property, you should be getting significant equity out of it. That all depends of course on how much money you are getting.
If you are looking very long term, investing right now may be a good idea. Several sectors are very cheap (ahem, banking), and a few sector etfs and diversified funds may be good buys. Just so long as you have the patience to hold these funds, you should receive some nice gains. On that note, you may want to consider index funds as the expense ratios are practically nothing.
I applaud you for not being like every other jackass 2x year old who thinks of nothing more than a fast car. You are making a wise choice and showing your maturity.
oh, and if you like to take some risk, you may want to consider some mid level junk bonds. The yields are pretty sweet on some of these guys and the probability of default is historically low. Its a risk, but a pretty good one, imho.
I think your best bet for making serious money is to look at foreclosed properties. You will get rental income, and if you buy a decent property, you should be getting significant equity out of it. That all depends of course on how much money you are getting.
If you are looking very long term, investing right now may be a good idea. Several sectors are very cheap (ahem, banking), and a few sector etfs and diversified funds may be good buys. Just so long as you have the patience to hold these funds, you should receive some nice gains. On that note, you may want to consider index funds as the expense ratios are practically nothing.
I applaud you for not being like every other jackass 2x year old who thinks of nothing more than a fast car. You are making a wise choice and showing your maturity.
oh, and if you like to take some risk, you may want to consider some mid level junk bonds. The yields are pretty sweet on some of these guys and the probability of default is historically low. Its a risk, but a pretty good one, imho.
If you are so worried about inflation (im not currently) and aren't looking to get risky, take a look at TIPS (treasury inflation protected securities). Its basically a treasury note that has a floating rate tied to inflation.
Yeah, and the investments that were providing me with 12-18% return over the past 5 years are now down 7% in the past 8 months. So, while the market is down, I stopped adding to the portfolio and bought some CDs. I don't see the market coming back in the near future. Haven't pulled anything out, just shifted new cash to CDs.
Look into places like to Virgin islands for offshore banking. Your money is worth a lot more out there. The banking system in the states sucks ass and gives you very little return on your investment. It also help when your uncle knows people that are very good in investing money in the proper places. Without big risks you will never get big rewards. :beer:
Precious metals might be a good place to invest. I might even consider oil futures considering how much they have dropped recently. ALthough I don't think it's ghit the bottom yet.
Real Estate looks good right now, but I would stay away from it in the southwest, I think there is alot more going down to happen for now.
Real Estate looks good right now, but I would stay away from it in the southwest, I think there is alot more going down to happen for now.
I call bullshit on your return. Probably a "paper" profit on a ponzi scheme.
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