16 years old looking for a long term (20 year) investment with 8-10% return?

Question

What would you recomend for me? Obviously i have very little experiance in this department; and have about 500 dollars for a initial investment; followed by 300 dollars every month. Recomendations?

alright um; thanks for the 10 COMPLETLY diffrent answers?

so ok, mutual fund are the way to go; any particular webiste that would be superior for my situation?

Answer 1

It is admirable that you are thinking of saving and investing for future.

I would advise you to buy or borrow a book on investing and read about mutual funds. With your money, you need to be responsible and do not depend on other people's advice.

Make your own mistakes...

Look at FORBES issue about mutual funds and purchase the recommended ones with a small amount each month.

Get a job so, you make $300 every month and open a ROTH IRA. You will avoid future taxes...

Answer 2

Look, before you do anything foolish with the money, get yourself an education in investing. You're going to have no idea if the advice people give you is any good unless you understand how money works. Personally, I recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It's an easy read and it will give you a firm foundation so that whenever you're presented with a financial choice or recommendation, you'll make an informed decision. No one's ever going to care as much about your money as you are, so you'd better learn how to handle it and make it grow. Good luck.

BTW, you have a golden opportunity because you're so young. Don't screw it up. You have a better chance to make it than the vast majority of people because you're actually thinking about the future at a young age.

Mutual fund companies that have a large selection and low expenses: Vanguard, T Rowe Price, and Fidelity. American Funds is the biggest there is, but they carry a load. You can find funds that perform just as well without a load, so you might as well put every last dollar to work for yourself instead of paying a commission to a broker.

Answer 3

read up on mutual funds go with those until you learn a lot about stocks. Get some magazines on funds, wall street journal study find out the best ones. Get info from you library should have the paper and magazines there. Careful of load funds and ones with high expense rates. Good Luck I did at a late age made a fair amount helped pay for a house and car. Made me more independent when I retired.

Answer 4

Nothing has a guaranteed return of 8-10%.

You can look at the past performance of certain asset classes and see how they've done, hoping that perhaps that trend will continue, but unless interest rates rise to where you can buy a 20 year bond paying an 8-10% coupon (preferably municipal so you minimize the taxes) then you're out of luck. Stocks and bonds have over time had good track records. So has real estate. Will they continue to? Who knows.

Answer 5

Look into growth funds (mutual funds), but as a legal minor you are probably going to have to have a parent or guardian involved in the actual investment, so you may as well ask them what they would suggest. I'm using growth funds to fund my retirement plan, the risk is greater in the short term but usually less so in the long term. Only invest money for the long term which you will not need for living expenses. If you have extra money now, but may need it for later, look into money market funds. Much lower yield, but very liquid.

Answer 6

Find a good Growth Mutual Fund and leave it alone , if your 16 and invest 300 a month you'll be rich someday.

Answer 7

open an ira account and pick a mutual fund, pick something like vanguard's target retirement funds, but they require 3000 dollars for initial investment

http://flagship4.vanguard.com/VGApp/hnw/content/Funds/FundsVanguardFundsTargetOverviewJSP.jsp

Answer 8

check out fidelity investments. Good luck! Your the first sixteen year old that has shown an interest in his future.

Answer 9

mutual fund from www.fidelity.com

they have a lot of info online and they'lll probably even give you a free phone call with an adviser.

Answer 10

College education.

Mutual funds