I'm 20 years old and currently running a very successful ebay business.. I am able to put 250.00-275.00 a month into something... Just wondering what would be the best option?? An IRA, Mutual Funds, stock market.. I am familiar with the stock market and played it a few years ago.. Made out well with shopko and la quinta.. Just wondering what would be the best for retirement?? Cause i am out at age 60 not 70 which will probably be the retirement age for my generation..
2007-01-23 12:16:44 · 7 answers · asked by racin_predator 1 in Business & Finance ➔ Investing
Mx out your 401k
2007-01-23 12:43:35 · answer #1 · answered by Nick C 3 · 0⤊ 0⤋
In 40 years, if you set up a Roth IRA and deposit the maximum each year into it--currently $4000--and invest in good mutual funds of a diverse nature, by the time your reach 60 in 40 years if history is any indication, you will have $1,770,370 that will be available to you with no taxes due. That assumes a somewhat conservative return rate of 10%. Some mutual funds have done much better than that over a 40 year span. I know of one that has returned 16%.
Now here is the good part as long as the money remains in the Roth IRA account it will continue to earn returns that are tax free, so assuming your IRA is earning 10% annually, you will be able to withdraw $177,000 a year tax free and never touch the principle.
2007-01-23 12:31:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hey there. I'm 24 myself and doing my own thing, but I'm putting off retirement stuff until I'm about 28 so I can fix up my house and do some things with my company.
If you have enough of an investment to make, I offer investors in my company 7%-8% interest on their money (depending on the investment amount). So if you invested $20,000 for example, I would pay you 7% of that a year in interest, which is $1400 a year. I could pay you monthly, which would add an extra $116.66 into your pocket every month. Obviously, the more you invest the more you'd get each month.
If you're thinking about retirement though, the easiest thing for people our age to do is open an IRA. www.sterling-trust.com is a great company. You can open an IRA, and then have Sterling send your IRA money to a company for investing (like mine). Then, every month I would pay your IRA account the interest, so now you've started your own retirement plan!
Everything is done with promissory notes in my office, and I'm usually pretty flexible with the terms (how long do you want to invest and lock in the 7%? 1 year? 2 years? 5 years?). Feel free to contact me if you're interested. I'd be happy to help you even if you aren't interested in investing in my company. I know how hard it can be to run your own show so young...I'd be happy to give you some tips.
Good luck. Leo hithere11757@yahoo.com
2007-01-24 12:41:53 · answer #3 · answered by hithere11757 2 · 0⤊ 0⤋
Diversify your investments. Put a portion into savings (whether it is an account, cd, or government bonds), an IRA, Mutual Funds, and a stock you like. You don't want to put all of you eggs in one basket. If you have Quicken, there is an investment plan on there. You put your personal info in so that you can determine which is the best combination (or at least a suggested combination) for you based on your age and the risk level you prefer (small risk, small return or higher risks for a higher return).
2007-01-23 12:23:46 · answer #4 · answered by Mariposa 7 · 0⤊ 0⤋
According to alot of financial writers, like the Rich Dad, Poor Dad book, putting your money in a bank is a bad idea, because the dollar value is dropping faster than the interest you would gain. Everyone works for 1 ultimate reason, before fun, food, clothes, etc...people work for Shelter or in other words real estate. It is also the most expesive purchase most people will make in their life. Sounds like a good investment to me...if you invest right.
2007-01-23 13:32:33 · answer #5 · answered by craig_elie 1 · 0⤊ 0⤋
what type of ebay business.........? e-mail me at tobiaszcj@yahoo.com! Personally, I love the stock market. It requires a lot of research, which can be hard at times, especially when you have 100 of other things to do for school. I am thinking about managing my own Roth IRA, but I am still doing my research on it.
2007-01-23 12:34:30 · answer #6 · answered by tobiaszcj 1 · 0⤊ 0⤋
Go to the bank and talk with a banker, they are helpful and knowledgable about his kind of stuff plus there are some good interest rates right now. Plus shop around at your local banks too. Who knows you might get lucky and find a really good rate especially now because banks are trying to get customers to start off the year. Just dont let them talk you into something you are not sure of cuz thay are good at that too.
2007-01-23 12:28:23 · answer #7 · answered by Mistaniceguy 1 · 0⤊ 0⤋