where should I invest my money? I am 16 and have S10,000?

Answer 1

I would max a Roth IRA if the amount you put in can be proven you earned it.

50% of the remainder in an aggressive stock fund, the other 50% in an high-yield money market fund or CD.

Don't touch the first two of these - let them grow. The third is something that will mature over a short period of time and you can reinvest the money and interest into whatever is paying higher rates then.

The reason I recommend an aggresive stock fund is you are young and can afford losses. Keep an eye on whatever fund you put your money in, rearrange it OCCASIONALLY to maximize your investment, but don't sell it whenever it starts to turn down. This is what you see all the time in movies and TV. And the current brokers are doing this, but truly successful, smart fund managers make decision based on information, not just where you can make a quick buck. They invest for the long term. You will learn how to deal with the ups and downs of the market.

Don't blow it on something that will depreciate, like an expensive car. If you invest in this at a young age and let time let it grow, you will be sitting nicely for the rest of your life.

If you put $8000 in a 10% annual average stock fund now at age 16 and don't touch it to age 67, you will have $1,033,040! And that's if you add nothing to it!

Check this out:

http://www.tdbanknorth.com/investment/calculators/cost_of_delay.html

Remember, knowledge is power. Learn all you can and keep learning. It's your money!

Answer 2

Invest in your college education at a state college. Go for a science field. If your parents have that covered. Split your money into three parts. The first part will be your emergency fund, which would be 3-6 months of living expenses. If you are fired from your job, have a problem where you can't work for a few months, or wind up with a big bill (your can blows up on you and you need a new one) you will be more likely to be covered. The second fund is your retirement fund. Open a Roth Ira account at 18 and max it with some ETF like SPY (the SP500). The third account you should have is your short term goals (saving for a house, another car etc.).

Answer 3

If you are 16 with 10,000K you cannot ignore the value of a professional. Ask others you know who invest large amounts of money, maybe your parent's friends or something. Find out who their financial advisor is and ask about them, look for an advisor you trust. He (or she) will help you invest the money wisely in a spread of mutual funds. As you get older and save more money you can build a little Mad Money portfolio (copyright Jim Cramer) where you can have more fun investing. But don't discount the value of professional services.

Answer 4

Take $4000 and buy an IRA from T. Rowe Price Equity Income Fund .
Take another $4000 and buy into a tax free Municipal Bond fund or a FDIC insured Government Bond Fund .
Take the last $2000 and put it into a 2 year C.D at your local bank .
When the CD matures check for better interest rate and roll the whole amount into another 2 year CD.
Keep doing this until you retire .
FOGET the fact you even have this money until you are ready to retire .
You`ll Thank me .

Answer 5

There is no simple answer, but I would open an online brokerage account with someone like Fidelity. You can then use their tools to investigate good stock investments. While you are learning how to invest, you can buy a CD and get a 5% return and keep your money safe. Read everything you can get your hands on and you will start to get the picture.

Answer 6

Stocks, Real Estate, Gold, Silver, Diamonds, Collectibles, Certificates of Deposit (CD), Money Market Accounts. The possibilities are endless. Would you like something simple such as a CD, no risk pretty good interest rates about 6% or Money Market with a 3% rate. A little more complex would be gold, silver, or diamonds. Then there is the most complex Stocks and Real Estate. So take your pick.

Answer 7

Two options....Either put that money in a couple of mutual funds which are stead and gives around 8-12% return. Second option is to buy stocks in a couple of companies like GE or BAC. They give good dividents and return is also around 8-10% a year.

Answer 8

Usually the younger you are the more risk tolerance you have. Since you are 16 I would say drop it all on Google (GOOG) and keep your finger crossed. You might lost is all or it might triple

Answer 9

Open a Certificate of deposit with a bank and leave the cash there.

Answer 10

Harvard.