I've got $2000 saved up and I'm wandering where I should invest it. Savings accounts are useless....the intrest rate is absolute rubbish.
I'm 21
2006-11-26 07:11:09 · 4 answers · asked by rishi_is_awake 3 in Business & Finance ➔ Investing
The stock market is a good investment for young people because it beats most other investments in the long run. The return can sometimes be as good as 20% with an average of 8-10%.
The drawback is risk, and our self-defense against risk is diversification, meaning spreading the risk across different companies and industries.
Here's what you can do now:
1. Open an account with TD Ameritrade at
http://www.tdameritrade.com
2. Consider buying as many shares of VTI as $2000 can buy.
The reason is that VTI represents the entire US stock market so well that it can reduce your risk.
3. After you've made about $500,000, consider investing some of your money, say 20%, overseas. You can easily do so with Oakmark.
http://oakmark.com/
2006-11-26 07:33:28 · answer #1 · answered by John 3 · 0⤊ 0⤋
If you have good credit, go online and do research on a state in the USA that has good potential over the next 10 years. Ex. San Antonio, TX had some good deals a few years ago prior to some Big co's including Toyota moving in, some properties were as little as 20k. Which means you have 10% down!!!.. you have something I don't, and most investors don't.. "Youth".. keep positive and keep saving!!!..
2006-11-27 00:26:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
bonds are goood. You lend money to the gov...better interest, and they pay you back. Also shows investment, which leads to a credit rating, which leads to borrowing more, then you start turning over real estate. The price of gold is also steadily rising.
2006-11-26 15:23:06 · answer #3 · answered by hb 1 · 0⤊ 0⤋
just answered same one
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2006-11-27 00:57:05 · answer #4 · answered by dinu_pawar 5 · 0⤊ 0⤋