Well, I am 13 and am currently thinking about saving money for college so my parents don't have to do all of the work, or possibly for a future house. I have a lot of money in my savings account which I do not want to touch, and so I have decided to start a new fund. I currently have some money for this fund, and have decided to put it into some sort of investment plan that I can take when I am going to pay for college. (If there is not much in the fund by then, it will be for a house or retirement.)
What is the best plan to do for this kind of situation?
2007-01-23 16:23:05 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
if you live in california there is a 529 plan which is specifically dealing with helping save money for college. look into it. there are tax benefits, but those would be best for your parents. they can open an account for you and use your funds and they can gain some benefits. Of course those benefits can be invested into your 529. im sure other states have similar investment options.
2007-01-23 16:36:26 · answer #1 · answered by Big p 1 · 0⤊ 0⤋
First of all, hats off to you for being so young and having a very mature mind. If you continue this kind of planning, i'm sure you'll retire very young and enjoy your life. Well, the best way to grow money in 3 years depends on how much you want the money to accumulate to. The bigger the amount you expect, the greater risks you take. Since this money will be used for college expenses, i would definately go with a safe plan like a savings account but it's always best to talk to a financial adviser. Going with a high rated mutual fund or a ETF like (VTI) are safe bets too and they definately should yield more than a savings account.
I'll give you an example of how a financial planner helped me out: I had over $60 000 in student loans and just like you, planned to invest some money to help pay my student loans sooner. I agreed to risk it all with my initial investment of $10 000 and he pointed me to a Closed End Fund for INDIA (IIF) back in 2002 which turned my investment into $70 000 in three years. Well, wish you all the best in future and remember to talk to a professional with experience.
2007-01-24 00:57:20 · answer #2 · answered by momach21 2 · 0⤊ 0⤋
Ask mom and dad to help you look into first a money market. Savings accts. are not earning much. If you're not earning 4-5% you need to look elsewhere. Second, look into mutual funds. let the professionals buy your stocks for you don't do it yourself yet. That's the best way to start off.
2007-01-24 00:28:15 · answer #3 · answered by uknowme 6 · 0⤊ 0⤋
well have you ever tried selling something? like go to your local Dmv or grocery and ask them if you can sell hot dogs and drinks or something in front of it or by the parking lot every weekend, and explain to them how you're gonna be using the profits towards your college education. thats whats i did to buy my first car. you can make like 500 bucks every weekend. and its hot dogs so if the whole thing flops youll lose like what, 40 bux?
2007-01-24 00:37:41 · answer #4 · answered by fisticuffs 4 · 0⤊ 0⤋