She has a job and is already putting money in a savings but I would like her to start investing for her future. Thanks for any info...
2006-12-03 09:15:05 · 5 answers · asked by imjustpeachytoo 2 in Business & Finance ➔ Personal Finance
I would go talk to your personal banker at the bank where you have your deposit accounts and see what product(s) would be best for her financial future. The best thing about a ROTH for someone her age is that in five years, she can withdraw all but $2,000.00, tax free, and put it towards a number of things, the best investment of which would be her first home. But, your finanical institution might have a better product available for her, like an Education IRA or something that will give her a larger return, since she is at a place in her life where taking larger risks will not really affect her lifestyle, should the investment go down.
2006-12-03 09:25:26 · answer #1 · answered by just another chick 2 · 0⤊ 0⤋
I think an IRA is probably not the best idea for her. Rather, you should open up an investment account for her. That way, she'll be able to withdraw the money if she needs it for college, or a car, or a house. Also, it would give her a chance to learn how to invest, which is a useful skill. It's a much better idea to learn investing when you're playing with money you can afford to lose rather than your family's savings.
2006-12-03 11:42:54 · answer #2 · answered by Cookiemobsta 3 · 0⤊ 0⤋
I want to congratulate you about caring about your daughters FINANCIAL future !!! *high five*
You can check on line for a financial representative of "American funds". Also check out "workman securities corporation".
You can find a rep. near you and get the ball rolling. Maybe you know of someone who has an IRA already within your city... ask them WHO they go through and if they are happy with that rep. Do not stay with someone you are not comfortable with. It is your money(ok, hers) and you should feel 110% comfortable with any rep. you have handling your money.
After you get this IRA going, you & her can check into stock... read read read !!!! Email companies and request their prospectus', it is free! read about the companies that interest you. After a while when she has more money to invest, she can find a company that she can buy directly from them without a broker. EASY EASY !!
Search : "direct stock purchase plans" and it will get her headed in the right direction. Heck... persuade her friends to learn this too !!
Happy Investing !!
2006-12-03 13:02:54 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋
suggest visit daveramsey.com to teach her about real world money investing.
as for withdrawing money from retirement accounts - not the smartest. teach her better - learn to budget , live on less than she earns, paay cash not buy into new is best, credit is 21st century slavery,.
there is a lot of good short term thinking out there so be wary.
2006-12-03 11:25:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Have you checked out Suze Orman's advice? She's all about financial advice for young people- and she's always talking about Roth IRA's (and she highly recommends them).
2006-12-03 09:18:18 · answer #5 · answered by water9094 2 · 1⤊ 0⤋