Hello everyone, I am a recent graduate from college and I got a $5,000 present from my parents. I would like to invest it somewhere. Stocks or a mutual funds look like a good idea but I am a COMPLETE newby on the whole investing idea. What do you suggest I do? I would like something low-risk but with average returns. I mean I can get 5% from the bank so anything around 10-15% (or more) would be nice.
What do you all think I should do with the money?
2006-12-27 15:24:48 · 21 answers · asked by paokichild 1 in Business & Finance ➔ Investing
I would recommend a Roth IRA.
2006-12-27 15:26:06 · answer #1 · answered by Moxie Crimefighter 6 · 3⤊ 2⤋
I invest in mutual funds but first I would suggest reading up and learning about them, there is risk but it pays to know what real risks are involved and not just go by the general notion that people have because they have "heard" mutual funds are risky. Understand the rule of 72. You take the rate of return that you are getting on an investment and divide that by 72 and that will give you in terms of how many years it will take for your money to have a doubling period, for example, Lets say you put your money in the bank and they gave you a 3% rate of return.
3 divided by 72=24 so your money would not double for 24 years. If you put your money in a mutual fund that has averaged 12% your money would now double every 6 years, using the same rule but you need to find what's right for you. You may want your money to be safe in the bank or you may actually want your money to grow providing you way the risks.
2006-12-30 21:56:05 · answer #2 · answered by Anonymous · 1⤊ 0⤋
put the money in an index fund (e.g. the vanguard s&p 500 index fund). an index fund is a kind of mutual fund that invests in the stock market according to some index. it's highly recommended for newcomers who want to move beyond savings accounts and CDs, since it requires very little time playing with the stock market, and the fees you pay are extremely low. also, over time, it's been shown that index funds in the US do better than most other mutual funds. keep in mind, though, that investing in the stock market is best done with the long term in mind (5 years or more). for shorter term investments, consider CDs.
to learn more about investing, an excellent website for beginners is the Motley Fool website: www.fool.com.
a good website for young investors is: www.iwillteachyoutoberich.com (maintained by a college grad from stanford)
once you have educated yourself, you can start investing directly in individual stocks (which have higher returns, along with higher risks).
good luck!
2006-12-27 23:34:15 · answer #3 · answered by bis 1 · 3⤊ 1⤋
an expectation of return of over average market return (around 10% over time) is unreasonable and overly risky. you cannot always get 5% from the bank (see the last few years) and you must calculate inflation into your situation. buy a SPYDER that mimics the s&p 500. you will get market returns over time and have your investment split up. also--unlike mutual funds--this is a stock that you hold onto and sell like individual stocks. better tax position than mutual funds and lower cost. it is an index of the market.
2006-12-27 23:30:27 · answer #4 · answered by Hushyanoize 5 · 0⤊ 0⤋
You have started thinking on the right track.....I made a blunder early in life and though that investing was a waste of time, now I think differently...
I am not to sure what investing option you have but i balance my portfolio in equity and Mutual Funds.....
Just a piece of advise, Never Buy Insurance as Investments also, read the book "Rich Dad Poor Dad" - a truly motivational book, which did wonders to me
2006-12-27 23:29:15 · answer #5 · answered by kiviniar 1 · 3⤊ 0⤋
Give it to me!
Seriously ... if you don't have any regular savings, start a savings account.
You should always have something saved up (at least a month's salary, if not more) that you can get to right away, without penalty, in case of job loss or some other emergency.
If you already have some saved up, you can put it a mutual fund. A mutual fund won't put all of your eggs in one basket -- the fund manager will (or at least should) diversify your funds into stocks, bonds, etc.
IRAs are offered by a lot of employers too. Many will match your contributions to it. If your employer has such a program, sign up for it.
It's a good tax-free investment, and the money your employer contributes is FREE money.
Ask your parents or other older relatives for advice too. (But if you have any relatives who have no money and are always getting eviction notices and phone cut-offs, I wouldn't seek their advice!)
Congratulations on graduating and good luck in the future.
.
2006-12-27 23:29:32 · answer #6 · answered by Anonymous · 1⤊ 2⤋
Sterp 1: Do you have any debts? Caredit cards charge much more in interest that you will make investing your money. Pay off or pay down any high-interest debts you have.
Step 2: If you are working, begin a regular savings program - try 10% of your net pay, to put into a good mutual fund or an etf (exchange traded fund) on a regular, on-going basis.
2006-12-28 00:33:16 · answer #7 · answered by mr. knowbody 1 · 2⤊ 1⤋
Nice graduation present and congratulation on your graduation. I'm assuming you're not rich yet and is going to be needing some cash so instead of locking all of your money up I would put a thousand in a checking account and 4 thousand in a CD. After a year find a financial advisor and invest in some stocks.
2006-12-28 02:54:51 · answer #8 · answered by askmeguru21 5 · 0⤊ 2⤋
I would suggest investing in Swiss Cash. Swiss Cash is a mutual fund product of asset management company SMF International Limited. The fund is a guaranteed capital and guaranteed returns fund. Your investment capital is guaranteed against any loss plus you are given a guaranteed return of 20 % a month on your investment. The guarantee comes from the asset management company SMF International Limited. Minimum amount to start investing is just US Dollars 100. More information on the fund can be obtained from the following website : -
www.swisscash.biz/myari0554501
2006-12-28 03:31:31 · answer #9 · answered by Ariff Shah 1 · 0⤊ 3⤋
Investing your money (your money being the key word) is very scary, I am starting to get the handle on it. I am 24 and i own about $20k worth of stock and shares. I have to admit that when you decided to sale your shares to make a quick buck, the Adrenalin kicks in. Sometimes you win and sometimes you don't. Life is all about choices.
I am not quite sure where you are in the world,..... but this is my suggestion.
Add your money into a trust account. In the trust account you should be able to purchase shares. Now the trust account will also earn money of your dividend of shares.
Or you can also blow it on the horses/track - ....
It's up to you
2006-12-27 23:31:52 · answer #10 · answered by JO K 2 · 0⤊ 2⤋
Hi
I think you should start your own forex/stock trading. I could introduce you to one brokerage company in Austria that allows to trade from same account currency (forex), commodities, metals and cfd on shares; total 500 instruments available. If you open trading account under my referral I provide you for free with trading techniques that I successfully use for several years and you’ll get my assistance in the future.
Another way you could find trader who accepts private investments.
If you are interesting please pm or e-mail me (press on my name) and I provide you with further information.
Good luck!
2006-12-28 04:01:52 · answer #11 · answered by VP 3 · 0⤊ 2⤋