so ummm is this smart?

Question

i am strongly thinking about investing in an IBond.. i am also considering an IRA because i just want to be able to plan ahead. so tell me what are the down falls to this and how much money is required. im ony 21 and a student still in medical school and umm working 2 parttime jobs

this isnt school that i have to watch my grammar and 2Nd No im not being supported and i cannot get finacial aid. i didnt need anyone being ugly to me just answer the questions please.

Answer 1

I think that it is great that you are considering an IRA at your age. Being 21, you ought to be thinking about investing in riskier securities for the IRA. There is more variation in returns -- but the average payoff is much greater. Over the course of your investment, you will make a lot more -- even though there will be down years.

I wouldn't think that an inflation adjusted bond would be the best investment for you at this time. Perhaps if you were near retirement it owuld be a good idea. The fact is that they don'g give a big return unless there is high inflation. The Fed does a much better job of controling inflation now than they used to. I'd think about putting the money into a mutual fund. Again -- since you are young, you can afford a riskier fund like a stock fund. If you aer worried about the loss of capital, then put part in a money market or short term bond fund.

You need to assess the level of risk you are comfortable taking.


Some people here are making fun of your grammar. I bet they wish they were smart enough to start an IRA at your age. Congratulatons.

Answer 2

Excellent! You are thinking ahead. Wish I had. First, consider a Roth IRA instead of a Traditional IRA. At this point, the growth is not taxed when you start taking your distributions when you retire. Since the contributions are after-tax, those dollars are not taxed, either. Do you need any of the money soon? Or is it all for retirement? Or somewhere in the middle? Most mutual fund companies will start an IRA for about $250 with $50 per month contributions (can be taken directly from your bank account). This way, you are investing at different prices at different times. You aren't tying up all of your money at once.

Contribution limits keeping going up. Take advantage while you can. Once you start making a significant income, you may not be able to contribute to a Roth IRA anymore. You'll probably have several other options down the road, but, for now, a Roth IRA sounds like a good idea. Because of your age, invest rather aggressively.

Answer 3

First, with English like that you aren't going to make it through any school let alone Medical. Second...you're a student...are you making so much from the two P-T jobs that you've $$$ left to invest? Are your parents supporting you through school? You shouldn't even be thinking about investing now as you're putting the cart before the horse. If you had written that you've already graduated we in Yahoo Answers would be obliged to ask if you're paying your student loans and related obligations prior to thinking about investing. At any rate try these on for size...

Do you need to be liquid...if so than an IRA isn't a good idea and neither is a bond. Suggest opening a monthly investment plan with a good no load mutual fund company that'll allow you to put away as little as $50 monthly (that's probably all you can afford)...Try Vanguard or T Rowe Price...Otherwise I really don't know how your thought process is working.

Answer 4

i think they are just jealous of you going thru medical school at such young age and have money left over. most people are in debt :)

anyway, IRA is a great idea, the younger you start the better off you are, but don't put I bond in IRA, that's waste of deductable money. I Bonds are minimum of 25 if you purchase them on treasurydirect.gov, 50 if you get them from banks. you have to hold them for minimum of 1 year, and withdraw under 5 years would cost you the last 3 months of interest.

I bonds are exempted from state tax but not federal income tax

Answer 5

I-bonds are tax free. I wonder, though, if you shouldn't try something with a higher risk-reward ratio, considering your age. Still, if you can invest 20k in I-bonds over the next 20 years, that will help you in the long run.

Answer 6

if your a part time student in medical school i would think that maybe grammar class would be something to invest in ,,,