i want to make the most of my money?

Question

i am 16 and have been working for about 6 months and have saved almost all of my money. i have amassed about 10,000 and have about 5,000 from my parents. i was wondering what i could do with it to make the most of it, i don't want to leave it in a bank acount and have it earn a little bit of interest. I have bought a cd 6 month that expires in november, are they a good bet what else could i do to make the most of my money?

thanks

Answer 1

Keep the money save and sound in a bank. Use the money to go to college in a couple years.

Answer 2

You are sixteen years old, you should talk to your parents about the best way to invest your hard earn money. If you are looking to use it for school then there are several programs out there that will assist with that type of investment. Have your parents take you to your local community bank and talk to a financial advisor about the best plan for your money. Don't invest in any get rich quick ideas, because the only people that get rich is the people who are selling you those ideas. There are other more mature ways to invest, but you will need guidance and parental support. CD's when they first came out had some good returns, now some of them gives you the same return as leaving your money in a bank. Remember there isn't any rush, and don't make any emotional decision, it took you a long time to save that money, so put as much thought and time into investing it, since you are so young try low risk investment, do not purchase any stocks (stocks are always high risk investment, no matter what the market is doing). My best advice is to talk to your parents and don't invest in anything without their approval. Also STAY AWAY FROM Internet get rich quick schemes, and TV infomercial Get rich quick schemes. Don't talk to anyone with out your parents present. I hope I was helpful.

Answer 3

The first question you should ask yourself is if you want to start a business. It's a lot of work, as well as a lot of risk. I think you're better off waiting a few years until you're in your 20s before thinking about this so that you are more mature and knowledgeable about life and business matters.

The second question you should ask yourself is when you think you will need the money. If you plan on using it for college in a few years, then you should just park it in a money market fund.

If you do not forsee needing the money and can afford to never tap it, then I would HIGHLY recommend the following: Put equal amounts into the following 3 ETFs (stocks that own a basket of several dozen stocks each):

VGT (Vanguard Technology sector ETF that owns Microsoft, Intel, Motorola, Google, Apple, HP, etc.)

VHT (Vanguard Health sector ETF that owns J&J, Pfizer, Abbot, Merck, etc.)

SPY (S&P 500 Index)

If you never touch the funds and receive a 10% return, your $15k should be worth the following at different ages throughout your life (assuming dividend reinvestment which may be offered only through certain brokerages):

Age 20 = $24.2k
Age 30 = $62.7k
Age 40 = $162.5k
Age 50 = $421.5k
Age 60 = $1.1m
Age 70 = $2.8m

Invest it now and forget about it as if you never had it and have fun watching it grow. You will never be this young again so take advantage of it and good luck to you.

Answer 4

Stock market is a good bet, but you should do some reading first to see what you're getting yourself into. When picking a brokerage site, watch out for transaction fees!

Here are my picks:

RY Royal Bank of Canada
TM Toyota
EEP Enbridge Gas
NBG National Bank of Greece
PCU Southern Copper
MMM 3M
DELL Dell computers

all on NYSE, except Dell, which is on Nasdaq

Answer 5

Congratulations. I think you should invest in the stock market. I suggest this to everyone. Are you going to need the money for college? Will you be buying your own home in a few years? A CD will produce guaranteed income if you need to have the money in a couple of years it may be better than the stock market.

Answer 6

Depends... are you willing to risk losing some of it? If not then stocks are probably not for you.

Bonds may be an option but they are long term usually, longer than a CD.

A good money market fund would be an idea.

Answer 7

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Answer 8

Invest in yourself -- start a small business that you can handle while still a high school student. By far the wealthiest people are those who own their own businesses

Answer 9

leave it in the bank, thats your best option.