Where can I invest $50.00 a month and earn a profit?

Question

Should I invest in savings bonds or can I invest in some small stocks and let them grow?

Answer 1

You can invest in many options and earn a profit. Commiting to save at least $50 per month and placing it in some opportunity to create a return on your money is a great beginning. You have options from savings accounts, certificates of deposit, savings bonds, and stocks. If you do not have any savings established, I would deposit your first several months savings to a savings account. Then you will have some flexibility to investigate your other options while you accumulate this savings. Certificates of deposit have higher guaranteed returns, but often require a minimum initial deposit and a required term of deposit. Bonds are also more certain returns. If you are not already familiar with the stock market, then you should make yourself more familiar with stock market operations while you accumulate some funds. For a beginning investor, you might want to look at mutual funds, which combine shares from many different companies to offer greater possibility for gain through diversification. If you choose this option, you might want to look into opening an account with an online trading service rather than a broker since you at this time will be investing relatively little money. Online services often require a minimum deposit of funds, but the fees should be less than dealing through a traditional broker. Overall, your final decision should be made on which medium will permit you to reach your personal goals. If you want to secure some income per month, then I recommend one of the guaranteed return investments. If your goal is to profit in the long term such as a plan for retirement, then you will need to look into stock market prospects.

Answer 2

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Answer 3

Short term profit or long term profit?

If you're looking for short-term profit, then I'd probably recommend doing something that makes you more marketable as an employee... get more education, look for certifications in your industry of interest, etc. People who make a short term profit in the stock market are extremely rare and extremely luck... doing it once is not surprising... doing it every month for a year, is.

If you're looking for long term profit, a lot of people invest with a method called "dollar-cost-averaging" into money market, mutual funds, or stock funds... If you want to go stocks over money market, I'd look more at larger companies that are fairly diverse themselves (I'm recalling this from a book I read years ago, so check out the current trends before taking me at my word -- an example would be something like Sears, as they don't sell one thing... if the market in fabrics and textiles drops, the odds are that the market in tool making won't at the same time, so in a sense Sears could be considered a "mini mutual fund")

My understanding of dollar-cost-averging (and please consult the web or a financial expert before taking me as the gospel) involves consistently investing in the same "fund" every period (in this case montly) with the same amount. Sometimes, when they are down, you'll get a lot of shares. Sometimes, when they are up, you'll get a few shares. But over time, your total number of shares will grow. And if you sell when the fund is up, then you'll see a profit overall, as your "cost-basis" is averaged over the full range of prices that you bought at.

Hope this gives you some ideas, or at least sparks some response from people more knowledgable than me.

Answer 4

Money Markets can make you about 4.5%

Mutual Fund can range from 5% to 12% (this is not a guarantee)

I would only buy stocks that have gone up, and this could take for ever to get a profit on (Unless you have Warren Buffet at your side).

Bonds are tied up for years.....

CD's make about 4%

I would see someone at your bank closest to you, and shop around. Most bankers have smooth tongues, shop around OK?

Answer 5

dollar cost average into a stock mutual fund that takes less risk than the overall stock market - look for a fund that has a standard deviaition less than the S&P500 and a beta less than their benchmark. the reason you shouldn't "shoot for the moon" is because if you lose 10%, you need to make back 11.5% to get to even, if you lose 20%, you need +25% (-50% needs +100%) so controlling your downside is actually more important that your upside performance. over the long run stocks significantly outperform bonds and money markets - over any rolling 10 yr period of time this is the case more than 95% of the time. good luck!

Answer 6

If you are serious to invest, you can consider HSFX Asset Management and start making consistent profit. You can google about them in search engine.

Answer 7

How about a bank? Stocks are a gamble - you could end up with less than you started with,.

Answer 8

The best investment anyone can make is into themselves...