I have $1200. What should I do with the money? What should I invest in? Bonds? Stocks? Anything. Any ideas?

Answer 1

Sadly, $1200 is not a lot of money. It might not even be enough to open a Vanguard mutual fund.

What's your financial situation? If you're a HS student saving for the future, you can put the money in a bank CD earning the highest interest you can find. If you're out on your own, you might need that money in a hurry if you lose your job or have a medical emergency not covered by insurance; if so, put it in a savings account that you can't access by an ATM.

Answer 2

Ignore the person who told you not to invest in stocks. My income is less than $40,000 a year.

I started investing in mutual funds, i.e. stocks, before the crash of '87. I also continued to invest through the crash of '01 and continue to do so. It wasn't a lot, around 10% of my income. I paid myself first so to say.

I have more money in my investments, than I have in social security. If I had been able to invest that money in my IRA and 401k, I would have been a millionaire by now.

Think of time. It starts small, but as time goes on it grows and grows.

There is something called the rule of 72. If you divide 72 by the interest rate or earnings rate, it the result is the number of years till your investment doubles.

So if you were only earning 7% that would be 72/7% = 10 years.

Now the neat thing is, that 10 years later, it doubles again, and you will have put the same amount of money in the second decade as you have done the first.

My regret is not starting earlier.

If you can find a book called, "The Richest Man in Babylon." It is a book about investing told as a parable. It was written after the 1929 crash. It changed my life.

Good Luck

Answer 3

Look what your local bank offers. Sometime a CD is good or an IRA. Paying off debt is a good thing too. Or pay a couple bills ahead, so you don't have to worry about them. Stock is a bad investment.

Answer 4

1.) Drop the cash into a Roth IRA. This is a retirement account that allows you to draw benefits TAX FREE when you hit retirement, but you will be taxed if you withdraw funds early.
2.) If you want to keep the money liquid, I'd deposit into a high interest savings account 5.2% or so. Emigrant direct has a great savings account and you can withdraw it on a whim!
3.) Send it to me. I could use a trip to Mexico. Not great financial returns, but won't it feel great to help someone else out?

Answer 5

Pay off your debt. It's the best investment you can make.

Answer 6

hat trick beverage
jones soda
union equity.kingoffer.com
and a little of cvdt for the China play

Answer 7

invest
!
not stocks because, then you have a chance of loosing it ALL

Answer 8

Buy some beer.