How do I start investing my money?

Question

I'm 25, and I would like to start saving for retirement. Does anyone know of a good firm that can guide me through this process?

Answer 1

First, pay off all short term debt. If you have a credit card interest rate of say, 21%, that's an instant tax-free return of 21% per year on your money.

Next, if your company has a 401(k) with matching funds, fund your 401(k) to the maximum match amount. Free money is good.

If your company doesn't have matching funds, then fund your Roth IRA to its maximum ($4,000). Tax-free growth is good. I'd go with a no-load, low cost mutual fund company, like Fidelity, Vanguard, or T Rowe Price. If you have money left over after you've funded the 401(k) to the maximum match, do this step with the extra money.

If you *still* have more money for long-term investing, go back to the 401(k) and invest in that up to what you can afford.

And get yourself an elementary education in personal finance. You're going to get a lot advice here, and you won't know who to believe. Well you can believe this: no one is going to care as much about your money as you are. No one is going to watch it as closely as you are, especially someone who's got multiple accounts to look after. So get yourself a foundation, so you'll know if someone is actually giving you good advice or not. Personally, I recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It'll give you an overview of everything you need to know (stocks, bonds, real estate, insurance, etc.). Then you can decide if you need a deeper education in anything. Good luck!

Answer 2

You don't really need a firm or even one of those financial advisors that will charge you $500 to tell you that your poor and need to start saving. My advice is, use the internet. There is a lot of good information out there. Most major banks and financial institutions have retirement savings information on their websites. The most commonly used approach is either an IRA or 401k through your employer. And usually if you open a retirement account with a bank or a financial institution, you can get a hold of someone who can walk you through it.

Personally I think it's not enough just to have the accounts, you must force yourself to save, even if it seems like a small amount, every month. IRAs and 401ks and any other type of retirement savings account still need to be allocated into certain types of investments. The most commonly used kind are mutual funds, money markets and other mainstream investments. My advice on this stuff is to think about how much risk you are willing to take. All mutual funds are required by law to tell you what types of stocks are in it and how aggressive the mutual fund is as an investment. If you are risk averse, pick about 50% in something conservative like a monet market and aobut 25% in something moderate like large cap funds and then 25% into something a bit more aggressive.

I know I overshot the answer you were looking for, but I believe it's not a bad thing to think for oneself and find the truth out there. There are lots of unscrupulous people who want you to throw your money in their direction.

Answer 3

First of all, make sure you've got a simple savings account set up with a few months salary for emergencies that may arise. I set up an account with ingdirect.com. Very easy to use, extremely convenient, good interest rate for a savings account.

Once that is established, look into your investment options. If your employer offers a retirement plan (like a 401k, as one example), consider that first. Many employers that have a retirement fund for employees also have a "matching" program where they will contribute matching funds to your account, up to a set amount. This is a no-brainer. For every dollar that you invest, they put a dollar into your account. You immediately make 100% on your investment. Doesn't get much better than that.

Whether or not you have a 401k at work, you can contact any of a number of financial firms to assist you. Stick with a name you know and trust, but shop around. You don't want to exhaust all of your earnings on brokerage fees and commissions.

As a final word, buy (or check your library for) the book "The Wealthy Barber". It really puts a lot of financial issues in very easy to understand terms, and is easy to read. It's in a story format, so it doesn't get as boring as some.

Answer 4

Like the other people have said here, the first place to check is your employer's retirement plan. If they don't have one, or if you can save more money after contributing the maximum allowed to the 401K, open a Roth IRA. Vanguard (www.vanguard.com) is a good place to start. You could also try Fidelity, they have a bunch of financial advisors.

Answer 5

Pretty much anything like Ameriprise, Merrill Lynch, Edward Jones.

BUT, if you do enough research, you can do it all yourself but using online brokers to purchase mutual funds and save TONS of cash. It all depends on how much you know about investing.

If you have 401k at work, definitely contribute, especially if they are matching. At 25, you want more risky investments because over the long run you will have greater rewards. Good luck.

I like www.sharebuilder.com

Answer 6

Start with your bank. They can give you a lot of oprions.

If you are thinking about a 401(k), and your company doesn't offer one, try VPL Services.

There are also a host of investment services out there. Look up a few in the phone book and call them. They will talk to you free.

Answer 7

Getting a CD in the bank bills up interest or you could invest in property if you want to further your investment.

Answer 8

INVESTING YOUR MONEY IN A RESIDUAL BUILDING NETWORK MARKETING BUSINESS IS THE KEY AND I CAN SHOW YOU HOW...IF YOU'RE AT ALL INTERESTED, EMAIL ME AT [e-mail].

Answer 9

you can start depositing it in my account.