What are all the differant ways to invest?

Question

Im young, and I need to know how I should invest for everyday life, short term goals, and the long term, like retirement.

I just wanna do it right if I can ASAP

I could use all the help I could get, Thank You.

Answer 1

If you are young, and you want to invest, be in it for the long haul, and don't get greedy.

They say asset allocation is the best way to look at your investments. There are stocks, bonds, real estate, and cash. You want to diversify!!! Let me say that again because it is soooo important: DIVERSIFY!

You also want to buy low and sell high. How to do both? First, decide on how to split up your assets. Let's say you go 30% stocks, 30% bonds, 30% real estate, and 10% cash. Start by buying some of each. If you have too little money to diversify, then buy shares in mutual funds. You get professional fund management and diversity without having to have deep pockets. Inside each category, again you want to diversify. Buy stocks in small companies, big companies, domestic companies, and foreign companies. Buy different stocks or funds, and when you buy funds, don't just buy one fund. Buy several funds with different companies and different fund managers, etc. With bonds, buy tax-free muni bonds, federal bonds. City level, state level, fed level.

Now, how to buy low and sell high? Every three months, take a look at the value of your portfolio. Real estate is screaming these days. You will find that the real estate portion of your portfolio has grown, and perhaps stocks have shrunk. So, sell off some real estate and buy stock! Seems stupid right now, but once the next stock boom comes, you got in on the ground floor, and when real estate tanks, you got out! Always re-adjust back to the initial percentages among stocks, bonds, real estate and cash.

They say this is the best way for a young person to do well without much risk over their whole life.

Or, just become a greedy pig. Go to California and buy a 800 sq ft house in the hood for $850K, and hope it goes to $1M before it tanks. Just remember, you're on the hook for the $850K if it tanks.

Answer 2

when you are young one of the best things to do as far as long term and short term investing is just plain saving.....save save save.

and a key point of a young persons savings is avoiding unnecessary fees and expenses....ATM fees, and the various fees and interest associated with credit cards.

As for long term also explore if your employer offers retirement saving options such as a 401k plan...this will allow pre tax savings, some employers match contributions...

open up an account at www.GMACBank.com, great rates for savings at all levels!

Answer 3

You can drop me a line.

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