Should I really invest my money in a CD or Bonds? What's the best direction to go for investing money and allowing it to grow?
2007-01-02 16:26:10 · 5 answers · asked by ant3271 2 in Business & Finance ➔ Personal Finance
I would say stay out of debt for everything except a home and an education. (That means no fancy cars until you can afford them)
Live within your means. Invest 10% or more of your income in stocks. Own at least one piece of real estate. Fund a Roth IRA as early as possible. Don't try to keep up with your friends as far as possesions. If you follow my advice you'll far surpass most of them. Read all you can about investing. You're not investing by putting your money in a CD. The only real investments are real estate and stocks. If you learn how to invest
in those you won't lose money and your returns will be far greater. One other thing. Be realistic. Too many young people think the world is just waiting for them and they will be rich before 30. They think they don't have to save anything because they will make so much they won't have to. If you start to save and invest in your early 20's by middle age you can live the rest of your life as you choose. If you do it right. If you never start saving you could very well end up old and broke. Learn how and prosper!
2007-01-02 20:28:43 · answer #1 · answered by Big R 6 · 0⤊ 0⤋
Stay away from credit cards are my first words of advice. I would invest in a low risk stock option. As it grows, invest in higher risk. Just keep moving up the ladder. Buy and sell stock, do some trading. CD's hardly make any interest at all these days. Savings Bonds take 18 years to mature. Invest wisely. Try to find a broker to help you. Good luck in your venture.
2007-01-02 17:56:45 · answer #2 · answered by ksgirl 3 · 0⤊ 1⤋
Live below your means and save at least %15 of you income. Invest it in your employers 401K if they match part of your contribution. Invest in index funds. They have out performed %90 of other mutual funds in the last 20 years. This is also a way to relieve the stress and worry about investing. Get on with having a life.
2007-01-03 07:59:10 · answer #3 · answered by sm4125 3 · 0⤊ 0⤋
Start now and continue to add through your working life off the top. A tax deferred account is your best bet and don't be afraid to diversify... some with mutual funds and some with safe CDs/bonds/etc. You can put a few bucks into individual stocks if you have good feelings about them. Stay clear of debts... it makes more sense to collect interest than to pay interest. Live below your means in terms of housing, car, and make sure to seperate wants from needs and get value from all your purchases.
2007-01-02 21:20:11 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Younger people should take greater risks with their money because they can afford to loose. The greater risk will increase chances of making a lot more money in the long run. You should invest in stocks if you have the time to learn about investing and manage your own money, otherwise you can still look at mutual funds or ETF's.
2007-01-02 16:30:18 · answer #5 · answered by Economics Guy 3 · 1⤊ 0⤋