Whats the best way to start investing?

Question

Im 18 and know nothing about investing, how do you get started and how do you go about buying stocks, i only want to spend about a 1000 $.

Answer 1

You'll have to open an account with a broker.

With 1000$, you're good to go !

http://index-go.com/finance-stock-market-guide.asp

Answer 2

I would point you toward Vanguard Mutual Funds. Website is Vanguard.com. Their funds are low cost and mostly index funds. An index fund is a fund that follows an average. For example the Vanguard 500 follows the S & P 500 index you hear on the nightly news. Most of Vanguard funds need a minimum of $3000 to invest with the exception of one. The Vanguard Star fund is made up of eleven different Vanguard mutual funds. It has both stock and bond holdings. I would invest my $1000 here and then sign up for auto deductions from my checking/savings account. The minimum dollar amount is $100 and I would try to put that in at least every six months (twice a year).

Answer 3

First thing to do is determine goals for the money. Down payment on a car, apt., wedding, school etc. within the next 5 years? If you are working and on your own, set up an emergency fund of 3 to 6 months (or however long you think it will take to find a new job) living expenses. CDs, money market or savings account (check www.bankrate.com for highest rates) or down payment on a house 10-15 years from now or even kids college fund or retirement 20+ years from now, then the stock market is the way to go. Set up a "core investment" in a good long term widely diversified mutual fund. Then later you can dabble in REITS, individual stocks, gold or whatever. Vanguard has a very good mutual fund that requires only $1,000 to start (most require $2500 {$3,000 at Vanguard}). Its Vanguard Star fund. Meanwhile, learn about investing. Read "Investing for Dummies" by Eric Tyson. Go to www.vanguard.com, click on "go to site" then click on "planning and education" tab and learn from there.

Answer 4

Read financial magazines, Money, Business Week, or online forums like Motley Fool and get some ideas about good investments. Then open an account at a discount broker like Scottrade - they will open an account for you with only $1000.00 and they charge only $7 commission per trade.

Above all - read everything that makes you more savvy about investing. Also, don't use your last $1,000.00 - keep that in savings for an unexpected event!

Answer 5

the only real answer worth a darn so far given was from Suzy. Apple is in trouble over the stock options. Real estate is over priced and due for a hard landing (especially with the property taxes going up). Gold is only for an inflation hedge. Alternative Energy is a joke that no one is taking seriously despite that idiot Gore winning an Oscar last night (probably a rigged win because over half of Hollywood is a commiecrat). Health care sector is in trouble with the commiecrats running the asylum in Washington now. But it takes money to make money.

Answer 6

OONe should start investing as soon as possible...at least 10-15 % of earning...After one has 3-4 months of expenses for
"rainy day or situations such as car problems, job loss, etc. Start by investing in a no load mutual fund with low expense management fees...such as a Vanguard...DO YOUR HOMEWORK>>>STUDY, REad, Read, Read, -any and all
financial magazins, take course, and attend seminars...only invest when you know all about what you plan to invest into and it is appropriate type of investment for your situation.

Answer 7

If you plan to save for the long term (ie. retirement) index funds that mimick the S&P 500 are the best way to go for the person that doesnt want to spend hours over company financials.

Less than 5 years you need to think about CDs, Bonds, and safer modes of investment.

Answer 8

Look no further. I think Swisscash is the answer to your call. You get 300% return in 15 months. Guaranteed by Swiss Mutual Fund 1948. I've started myself with USD12K and receive the monthly return as promised i.e 10%x3months + 15%x3months + 20%x3months + 25%x3months + 30%x3months. I've started in October 2007. Send me a note, and I can show you the proof what I am talking about here.

Answer 9

Do NOT buy stocks!!!

The best investment is in a house. If you have regular income then invest in a small apartment etc.

History shows that the best return on investment is actually real estate, although stocks seem 'sexy' the money is in property!


With only $1,000 to play with put your money into a real estate REIT as the next best thing/

Answer 10

Open a brokerage account at TD Ameritrade and invest in the ETF DIA.