Keep in mind, this question is not purely concieved from curiousity. I am a reasonably young man - under 21, and I am currently a student attempting to acheive my BS in Business Admin. I have no debts, and no present or future school fees to be concerned with, and I live in Southern California. What sort of options do I have when it comes to investment, and who would you reccomend I speak with?
2006-12-15 03:11:25 · 9 answers · asked by Jordan D 1 in Business & Finance ➔ Investing
How about that a college kid with 250K. You are sitting pretty.
The key to investing that amount of money is diversity as it is with about any amount of money. You have many options. If you are so inclined and do not mind doing the research, you can invest it directly in company equities. About 25-30 different companies across geographic boundaries. Some in China, India, Europe, Japan, Latin America, the U S.
If you do not have the inclination, you can choose index funds or mutual funds but keeping the same type of diversity.
If historical trends continue you should be able to count on about 10% to 13% annual return over a long period of time. Possibly more but unlikely.
2006-12-15 04:12:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I have a portfolio of the top ten most profitable companies in the US that increased some 40 percent since about May. There is a simple Exchange Traded Fund, symbol NY, an Ishares product, that holds the top 100, by market capitalization, of the New York Stock Exchange. These are enormous companies, not all American, that got big by doing big business in a big way. If you want a piece of that action, it recently traded at around $75. It was selling at about 5 cents above the Net Asset Value for the fund and has an expense ratio of about 0.2 percent (find that in a mutual fund!).
Another tack is to do some business yourself, you've got the capital, set up shop and practice what you are learning on the side. Two doors down from me at my dormroom several years ago when I was in school, there was a fellow that was selling afterschool. He bought his own car with cash, had the nicest suits--not bad for a successful full time student who was the fatherless son of immigrants and was also putting his brother through trade school and supporting a nearly illiterate mother at home. You are sharp, you can park the funds for now or practice what you are learning to preach. A recent issue of Readers Digest tells how the Subway chain started like that, with far more meager means than you have.
Go for it, tiger!
2006-12-15 12:22:10 · answer #2 · answered by Rabbit 7 · 0⤊ 0⤋
Take it to a broker of your choice. Maybe you can get a job there when you graduate. They will help you. Maybe you can try just to invest with a mutal fund company like Fidelity or TRowe Price.
at your age I say 75% domestic stock funds 10% foriegn exposure 10% bond and 5% stays in savings in case of Emergancy.
Buying a pad also can help you save on some bills now and help you get a nicer girl quicker. You may want to keep some for entertainment and maybe you want a nice car to impress the girls. I depends on your goals. Thats why I would see a paid advisor since your BS suggest you may end up in that line of work anyway maybe they will give you better advice because your probably learning what they do in school
2006-12-15 12:10:50 · answer #3 · answered by William H 2 · 0⤊ 0⤋
Well, I had lots of ideas until I got to the part about Southern California. If I were a student in Southern Cal, the best investment would be a down payment on a Condo, or you could move to Tampa, Florida and buy a Condo in the new Trump Tower. In either case, I think you'd have a substantial nest egg when you retire.
2006-12-15 11:31:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Invest in the stock market. Get your investment ideas from the best investors. Go to http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.
Here are this month's best traders:
http://www.top10traders.com/Top10Standings.aspx
Good luck.
2006-12-15 22:08:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Put $100K in sony stock for the next 6 months. Then sell it all. After the 6 months put all that in a retirement account. Put all but $25K in the highest yield account you can find. Keep the $25000 in a savings account just for emergencies or something you really want.
2006-12-15 11:18:28 · answer #6 · answered by Joey R 5 · 0⤊ 0⤋
open a brokerage account at Fidelity or Schwab. Invest in ETF's (like mutual funds, but less expensive) and leave them there for a long time.
2006-12-15 12:03:05 · answer #7 · answered by Ovrtaxed 4 · 0⤊ 0⤋
Land which has timber or open fields where you can plant pines. Real estate and tree farms pay off big time, but they are long term investments.
2006-12-15 11:54:34 · answer #8 · answered by On Time 3 · 0⤊ 0⤋
Meet with a financial advisor at your bank
2006-12-15 11:18:51 · answer #9 · answered by Panda 3 · 0⤊ 0⤋