How to start investing money? CD, Mutual Funds, Stock, ETC.

[TheDamned]

I'm not starting saving anyhow in the near futur. We can die or catch some **** anyday these days so I just live everyday to teh max and not worry about the retirement.

 

[ROLLIN5.0]

Yea but he only has 3000 dollors and there is NO way you can split that up in to 30 different securities. i would say 3 at most. most likely one low risk and one high risk.

And if you want to get into stocks go to www.scottrade.com and find a brach near you. you will need a minimum of 500 dollars (I beleive) to open an acoount and it needs to be a certified check from your bank. just go there and they will tell you what to do. It's only 7 dollars a trade. Cheapest i've seen. plus if you say you were reffered by me than we both get 3 free trades

I was responding to the individual that said he shouldn't buy individual stocks at all. Obviously he wouldn't be able to start with 30 with $3,000.
I always adjust everything around tax time. I may look at the site you listed as an option this year. Shoot me an E-mail, so I'll have your E-mail address, and if I get an account with them, I will say you recommended me.
Brandon

 

[GRGT1994]

The most important thing is just to start saving. So great job on your start.

I read over a bunch of the posts here, and there is some good information. But be careful. Remember, the most important thing when you are so young is just to get yourself in the habit of saving. That is it. Where you put it, and how you invest it is much less imporant.

The reason I say that is that there is just too much to swim through when you are getting started. So pick a broker or bank. Pick a broad mutual fund (like an index fund). Keep it simple, REAL simple. Stay out of individual stocks until you have $100k to $200k. Even then, just dabble. You'll kill yourself on transaction fees.

If you need the excitement of individual stocks, pick some to track. Then see how your picks perform. But remember, individual stocks really don't make any sense until you have enough socked away that any individual position will be less than 5% (preferrably less than 1%) of your total holdings.

 

[whitesnake1994]

If you need the excitement of individual stocks, pick some to track. Then see how your picks perform. But remember, individual stocks really don't make any sense until you have enough socked away that any individual position will be less than 5% (preferrably less than 1%) of your total holdings.

I have to disagree with you there. DEFINATLEY RESEARCH the stock to the fullest extent. and then maybe ask a dad or uncle who knows about stocks to look it over as well. But I am 21 and I started investing in individual stocks last year at a intitial investment of 4000 and now have a little over 10,000. thats not bad for less than than a year i guess But you do have to very careful with them.

Even then, just dabble. You'll kill yourself on transaction fees.

And like I said it is only 7 dollars a trade, thats not much of transaction fee at all!!

 

[GRGT1994]

Hey, if that works for you, then knock it out. Nice return.

But as a general rule, more people will be discouraged and lose interest in a very important and difficult habit (regular savings) if they start with stocks.

 

[BlackVert]

So lets say you had 15,000 to invest...and i had 400 a month to put into it... what would you do? IRA?

in an ira at 10% for 40 years: a cool 3 million.

i'd put it in something that tracks the dow or the s&p 500

 

[GRGT1994]

Of course a bottle of Coke will cost $6 in 40 years too.

 

[93 teal terror]

Of course a bottle of Coke will cost $6 in 40 years too.

Thats a good point. Those ING savings accounts are great but if inflation averages 3% per year, your only making 0.75%/year on your money. But thats a lot better than the 0.5% most banks give savings accounts. Hell your actually losing money that way.

In my opinion money in stocks should be expendable. Its just like gambling no matter if you invest in mutual fund or are a day trader. You could loose all your money in a crash tomorrow.

I think you should have a little of everything. You need to have diverse investments. Stocks, bonds, savings, collectibles, precious metals. A little bit of everything is always a better idea. That way no matter what happens your covered in every situation. So far ive just got savings, stocks, bonds, and a trust fund. I've also got a pension plan at work but Im gonna open an IRA here shortly