I am a college student and I make about 300 a week, 1200 a month, how do I and what do I do to increase that amount through investments without major risks?
2006-06-26 11:55:50 · 6 answers · asked by Gface15 2 in Business & Finance ➔ Investing
You are receiving a lot of answers advising you to invest in an IRA. Those are retirement accounts and they are good for that, but if you put your money into one, you can not remove it without penalties.
If your are a college student, you may have a need for your money in the near term. Maybe to buy a car, to move to a new job, etc.
There are NO investments without risks. The least risky are T-bills. They pay about 5% for 6 mo T-bills. From there the risk increases as does the potential rewards. A good mutual fund that has a good track record in both up markets and down markets would be the least risky of the potentially rewarding security investments. It is least risky because of the diversification it offers. Bruce Fund is a good example of one.
Historically, it has an outstanding record. That does not necessarily mean that it will perform well in the future, but it does vouch well for its past.
2006-06-27 00:09:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The roth IRA is definitely a good choice. However, I don't like to see people investing for the first time in something they can't touch for 30 something years. There is no reason that you can't invest in a healthy, safe mutual fund. The lady below is right about Vanguard but there are some down sides to Vanguard. Fidelity was rated the top firm for Research which means that they very carefully research every fund that they sell. (this months' issue of Kipplinglers is excellent because it rated ALL the firms for 2006. CHarles Shwabb came out on top for lowest fees and great service and return for the money. A basic mutual fund that mimiques the S&P 500 is a good choice. Fidelity has one, Vanguard has one and lots of firms are now offering a fund such as this. It's great for a beginer investor.
I know this sounds overwhelming but it's all just lingo. I started horseback riding and I couldn't believe the new lingo I had to learn. Just relax and stick some money in a Roth and a mutual fund. EVEN if it's $10 dollars each!!!
2006-06-26 19:52:44 · answer #2 · answered by Dr. Phil-lys 4 · 0⤊ 0⤋
Without major risks??
You can put your money into a good savings account that earns a lot of interests. That's zero risk.
If you want to make more money you need to take more risk, that's just the basic fundamental rule in investment.
the least risky investments are Treasury bonds, municipal bonds, index fund.
Try those.
2006-06-26 18:59:25 · answer #3 · answered by Heartache 2 · 0⤊ 0⤋
I completely agree with using both the roth IRA and a mutual fund. The max you would be able to invest a year with the roth IRA is limited anyways. I say max out the roth IRA each year you can. Let the compounding magic begin and then get a decent mutual fund. My biggest advice on the mutual fund: Buy from the fund itself, never buy from a broker.
2006-06-26 23:14:54 · answer #4 · answered by RMC 2 · 0⤊ 0⤋
Your first investment for the long term should be a Roth IRA.
This will not generate an income stream, however. If income is your goal, you might want to look at some blue chip stocks that have high dividend yields (dividend / stock price), or a mutual fund that holds such stocks.
2006-06-26 18:57:42 · answer #5 · answered by qopqo7 2 · 0⤊ 0⤋
Yes IRA. Vanguard is a good company to invest with.
2006-06-26 19:00:36 · answer #6 · answered by msbluebells 3 · 0⤊ 0⤋