19 and interested in Investing and Making a little cash? Short term or Long Term?

Question

Saving account don't grow fast and have horrible interest. But I'm also in college so not really rich, more on borerline broke. But I do play to have a least $300- $500 dollars from work studie by the end of the semester. What can I invest it in so that it will grow.

CD's?
Saving Account?

Any tips or advice?

Answer 1

I would recommend short term CD's. So that you in case of an emercy have liquid assessts avaiable to you.

Go to an investment conselor. Go to some links like

www.prudential.com
or this one here
http://www.huntington.com/pas/HNB2076.htm

Answer 2

I'm glad that you are looking toward investing at such an early age. I realize that at the moment it seems like forever, but when you are ready to retire, you will appreciate your maturity and your decision making acument.

Now with this, being 19 you have problems that most investors don't have. You still have tuition to pay for, eventually you will be buying a home, you haven't started a family yet.

Long-term investing is probably not in your plans at the moment. Also, fees should be a major issue as well as tax planning should be a priority.

For now a short-term CD would be an excellent idea.

However, there are many investment instruments out there. What I would suggest is that you talk to an investment planner before you do anything.

But with this, I would also suggest that you talk to someone, your Dad, or another family member, or someone else you know that is investing. The reason I mention this is because if someone you know already has an investment counselor, and they set up a meeting for you, that counselor has added incentive to take time with you.

That counselor will already have a relationship with someone you know, and how they treat you will not only affect you, but affect that other relationship. That counselor will have greater incentive to explain things to you, make the right decision for you, and take a greater interest in you.

Good luck!

Answer 3

This would be a great time to learn how to save and invest. I would look at Dividend Reinvestment Plans, called DRiPs. You can buy a single share of a stock, then register it with the company and use the dividends to buy more shares. You can add to it as you get more money, and buy partial shares. I'd study this, pick a couple of companies and put half into each company. Don't do this if you think you'll need the money soon, but if you can spare it, you'll learn a lot.

Also, you're so young that your money has a long time to grow. If you find a company that go up about 8% a year, which is reasonable, you could turn $300 into $3,600 by age 55. If you can make 12% on your money, which is still reasonable, you can turn $500 into $64,000 by age 61! Look up "The Rule of 72" for more information on how money doubles. Look up www.drip-investor.com or www.moneypaper.com for information on how to buy single shares of stocks for DRiPs. (I like Exxon, which requires a $250 minimum and has no fees to invest, but I don't know how you feel about oil stocks.)

Good luck!

Answer 4

Now is not a good time to invest in stocks. Instead of stocks, you should try prosper.com. But only invest in loans with a credit rating of C or better and a DIT of less than 20%. I have had tremendous success with Prosper. Most of the loans I've funded have at least a 10% - 18% return. A lot better than any CD and safer than the stock market! Good Luck!

Check out this article from the NY Times.
http://www.nytimes.com/2006/02/13/technology/13ecom.html?ex=1297486800&en=a0ac72b7453152ab&ei=5090

Answer 5

That really isn't enough for anything other than a savings account. If I were you I'd find a high rate one (check GMAC, HSBC and others) and just add to it as you can. When you graduate you'll need money to get you started in the world so it's good to get started now.

Alternatively, you can open a Roth IRA at T. Rowe Price with as little as $50 if you set up automatic $50 contributions. It would be great if you could get started saving for your retirement this early.

Good luck!

http://www.personalfinance101.org/?utm_source=YH&utm_medium=link

Answer 6

I suggest you start putting away $50 or $100 each month. I know its hard while in college though. Please start as soon as possible. The most powerful thing in the world of finance is compound interest.

Go read about compound interest.... also do a google about a compound interest calculator. You could have millions by retirement by saving a few thousand over the next fifteen years and letting it grow.

Answer 7

I suggest you to open a brokerage account at SogoInvest and buy DIA.