I'm 16, and I'm looking for a good way to invest money other than a savings account. I have about $500 to work with. Does anyone have any suggestions.
2007-02-12 07:12:29 · 8 answers · asked by John 4 in Business & Finance ➔ Investing
I think its great that you are looking to invest ignore the first response, a truck will only depreciate in value. I would open an ING account, it has a higher savings rate then any local bank plus it cuts down your chances for impulse buys because you have to wait 3 days to receive the $. I would save up till you have $3000.00 open a Roth IRA and be happy that you are way ahead in the retirement race. I know it sounds funny to think that way but if you can invest $2000/yr from 16yr-20yrs and NEVER add anymore money to that account- you'll have 1 million by retirement age- not bad and think about if you keep adding to that account. The best thing you have right now is time on your side. If I could go back its one of the few things I would have changed about what I did as a teenager & my money. Hope this helps- good luck
2007-02-12 07:32:46 · answer #1 · answered by Leticia W 2 · 0⤊ 0⤋
Some mutual funds have a $500 minimum initial investment. Can't think of any names right now because they usually have a load and high expenses, or through www.sharebuilder.com, which charges $4 to buy, you could buy an ETF, exchange traded fund which is basically an index fund that trades like stocks. Also think about investing in a company that handles something everyone needs, uses up quickly and needs to buy more. They should be around when you retire. Proctor and Gamble makes toothpaste, soap, and a thousand other products used around the world. Sharebuilder allows you to reinvest the dividends. Some water and energy companies allow you to buy initail shares directly through them. Some direct stock purchase plans and the minimun to start, of companies that should be around for awhile are Aqua America $500, AT&T $500, Chevron $250, ConocoPhillips $250, Dominion Resources $350, Duke Energy $250, MDU Resources $250, Southwest Water $250 and Verizon Communications $500. Get their investor relations phone number (or apply) through their web sites.
2007-02-12 08:50:26 · answer #2 · answered by gosh137 6 · 0⤊ 0⤋
With your first savings the best thing is to put it in bank savings a/c in case of emergencies, unemployment etc.
But if you are sure you do not want that, then buy a low load index tracking mutual fund investing in the emerging markets, ie Russia/ Brazil/ India/ China. With a little luck, in the long run, you should do very well.
2007-02-12 08:36:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
There are various ways to invest small amount of money.First you need to understand some basic principles of investment and understand which type of investment suits you.To know more about investments check the website link below.
http://www.smart-investments.org
2007-02-12 08:31:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You have to invest in mutual funds which earns high return. Risk diversification is the advantage of mutual funds.
2007-02-14 18:35:14 · answer #5 · answered by sindhukannankattil 2 · 0⤊ 0⤋
Open a brokerage account at Scottrade and invest in the ETF DIA.
2007-02-12 11:14:03 · answer #6 · answered by Anonymous · 0⤊ 1⤋
I'd save it...why would you want to invest anyway....save it and buy a truck in a year or somethin
2007-02-12 07:15:29 · answer #7 · answered by Joe 2 · 0⤊ 0⤋
Try www.stock-exc.com
2007-02-12 07:25:08 · answer #8 · answered by Anonymous · 0⤊ 0⤋