I am 22 years old and only 6 months in to my first full-time job after college. What is the best investment I can make right now to get myself on the road to financial success?
2007-02-19 07:14:23 · 14 answers · asked by jilip_99 1 in Business & Finance ➔ Investing
Roth IRA--the compound interest will make you more than financially stable in retirement if you start in your 20s
2007-02-19 07:22:08 · answer #1 · answered by Heather Y 7 · 0⤊ 0⤋
If your company has a retirement program with matching money, that is free stuff so go for it. At my job I pay in 4 percent of my gross wage and they pay in 6 percent. I got a big gain just playing the game.
If I were in your shoes (and I'm not) and could invest in only two things from here on (a rhetorical example, certainly far from the real world), I would want to know about two exchange traded funds: IAU and PXN. The first is owning a piece of actual gold in a vault and the other is the top players in nanotechnology, some astounding stuff coming fairly soon. If permitted a third, check out the ETF symbol NY (ETFs trade like stocks). This is the biggest (by market capitalization) 100 companies on the New York Stock Exchange (they got big, and stayed big by being exceptionally good at making money on a regular basis). Then get on with your life. Good luck.
2007-02-23 05:33:04 · answer #2 · answered by Rabbit 7 · 0⤊ 0⤋
There are two big things that you can do but the best investment in the whole entire world is home ownership. Yes, yes yes.. You have heard it all before but there are so many benefits to owning a home it's almost a no-brainer. The government re-imburses you (by a tax credit) for the interest you paid on your mortgage. You get to deduct for real (or imagined) wear and tear and depreciation even though it is an appreciating asset and it's like borrowing $100,000 to put into an IRA but you get to live inside the loan. If you borrow $100,000 for a condo or loft or something and 3 years later you sell it and it is worth $120,000. You might have paid $15,000 in your mortgage in those 3 years but you get your money back IN ADDITION to ALL of the divedends that your investment produced. You can't lose money unless you buy a shack in the "hood" or you burn it down without any home owners insurance. By time you get to be in your late 40's or early 50's if you bought more than one home you can retire early and live off of the rent when your homes are paid off. To get a 7% return on your $100,000 in a managed fund you actually have to HAVE the money cash and can't touch it, use it, smell it. With a home you can.
2007-02-19 07:32:03 · answer #3 · answered by Magnus01 3 · 0⤊ 0⤋
Throw a small percent in the company 401k/403b plan to start(especially if your company has a match policy). Depending on how much money you have currently available, a realestate investment would be wise. I would at least try to get myself to the point where I could make a realestate purchase. Lastly, if you can afford it, put a small amount into some stock funds. I would not recommend investing in stocks directly unless you have a good understanding of the companies that you are investing in. Funds typically grow slower, but are safer investments.
2007-02-19 07:21:59 · answer #4 · answered by mark 7 · 0⤊ 0⤋
Experience in your field is your best investment. It will make you more valuable as an employee and will enhance your education. If you do happen to have a huge amount of disposable income, you may want to open an IRA account or invest in mutual funds at around 8% or so. Certificates of deposit are good investments, but there's not much return if you invest less than $10,000.
2007-02-19 07:28:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Max out any company matching plans.
Tax deferred should be you first choice, but something in a Roth Ira for tax free money later + less restrictions on withdrawls.
If you don't own a home buy one, you might want to consider roommates or a house with inlaw apartment for rental income.
There is plenty of info on stocks and mutual funds, that info will tell you to invest more in stocks and mutual funds than bonds or cds.
Diversify stock investments - 20-30% international, Maybe gold. but you really need to educate yourself..
2007-02-19 07:38:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋
simple answer is - yourself - do anything to improve your skills or education. If you feel you have done that, then the next thing you should look into is whether your employer offers a 401K reitrement plan with some matching. If they do, and most will, then you should put aside what every percentage of your earnings gets them to commit the maximum. If they offer 50% matching up to 6%, then you elect to set aside 6% and get the 3% matching. a 50% return is a great way to start!
2007-02-19 07:25:08 · answer #7 · answered by rarguile 6 · 0⤊ 0⤋
I heard a little joke about investing in the stock market.... it went something like this.... if you invested $1000 in certain stocks such as enron your return was anywhere from $16 - $100... but if you invest in beer, and drink that beer, and return the cans.... at the end, you will have a $215 profit for the same $1000..... it was called the 401-keg plan! good luck!
2007-02-19 07:25:47 · answer #8 · answered by who be boo? 5 · 0⤊ 1⤋
Buy a house: If you are renting, your rent money will build the foundation for your financial success. If you are living with your parents, buy a "handyman's special" (a fixer upper) will help you to put your money in a better place than a bank.
Don't take on a big job in the beginning. Start small and work your way up. THE SAME ADVICE FOR FINDING PEOPLE TO WORK ON YOUR PROPERTY.
2007-02-19 07:26:31 · answer #9 · answered by whatevit 5 · 0⤊ 1⤋
Make a long term plan.
I suggest that you start a 401k or an IRA, depending upon what may be offered by your employer.
Save 10% of every paycheck is one that I did as well. You'll be surprised how fast it grows.
There are many good books on the subject, I suggest you check Amazon.
2007-02-19 07:24:30 · answer #10 · answered by Driftwood 2 · 0⤊ 1⤋