I do not want a "get rich quick scheme" but a solid investment plan for my income? Thoughts?

Question

I am a shift manager at a fast food restaurant and I make about 360 dollars a week. If I were to put money into something that would provide a gradual but worthwhile (EG before I'm old) return. Is it possible to do this while still keeping my job? I couldn't see myself not working, but I wish I had more money to work with, and I enjoy the job I have now, because it is fun and laid back though not as high-paying as I could get.

Answer 1

Well, my advice would still be to get another job. Never settle unless you think you can move up through the ranks of the company.

As far as investments go, I would advise you to just open a high interest online saving account with HSCBdirect.com. You'll get a gaurenteed rate of return (5.05%), and you'll have easy access to your money if necessary. I'd start with 10% or more of every pay check.

After you've save a few thousand into this "emergency fund", then I would recommend researching the basics of mutual funds and IRAs so you'll eventually be ready for a better rate of return and get some tax savings.

I'm assuming you fairly young. If you are start out with this strategy in your late 20s early 30s, there's no reason you can't retire a millionaire.

Answer 2

It's great that you are thinking ahead and want to invest some of your earnings.

The first thing you should do is start some sort of savings account, (there are lots to chose from - a money market account at your bank, an ing account - see link below) and many many more. This is savings and should be kept liquid. It is your emergency fund.

Investing in Stocks or Mutual Funds is also a great idea. However, they are not as liquid as savings, which is why you should keep some savings seperate.

If you have not started a retirement account, look into IRA's and Roth IRA's. (do some research on both but if you are fairly young, a Roth IRA is probably a better choice for you). There are great tax advantages to both. This is retirement money so make sure you understand the ramifications of taking the money back out before retirement age. There are tax penalities for doing so.

For other investments, education is key here. You need to learn the stock market and also mutual funds. There are lots of books on investing. There are also a lot of websites. Be careful of anyone that tells you you are going to make a huge return on some stock. It's certainly possible but highly unlikely. You can make great returns in the stock market but it takes learning what makes a good investment and what is not.

A good index mutual fund might be your best bet starting out.

Do a lot of research on investing overall first before you jump in though. I'd hate to see you lose your shirt.

Answer 3

1. Pay off any debts you have other than a mortgage, and/or student loans.
2. Establish good credit. Open a credit card if you don't have one. Make sure you don't ever exceed 50% of your total credit limit. Pay it off every month.
3. Have a savings/money market account that earns 4-5% interest right now. ING Direct, Vanguard, EmigrantDirect, Fidelity all offer good ones. Put a few thousand dollars in there so that you don't have to get a loan or use credit cards if you lose your job, your car breaks down, you get sick, etc.
4. Open a Roth IRA and max it out every year. Put the money in a balanced index fund according to your age (more stocks if you are young, fewer if you are old; research this online). You can use this money if you need it to buy a house or pay for college. Otherwise it's the best retirement planning vehicle there is. Pay tax now; rates will only go up as our government debt grows!
5. Buy a house/condo that you can afford. Once you have some savings and good credit, this won't be too hard. Then instead of losing rent money, your net worth will grow each month as you pay your mortgage--home value goes up and your mortgage balance goes down.

Answer 4

There are many options you can work with.

First you need to determine your tolerance for risk.
*High Risk - Most potential for growth, but most potential to lose money (ie; small cap stocks)
*Medium Risk - You MAY not make as much money as the high risk, but you do not run the risk of losing as much either (ie; higher priced stocks)
*Low Risk - The return is not going ot be high, but the chances of losing money is slim (ie: bonds)

You also need to look at how accessible you need your money to be. How long can you live on your savings (money not invested)? How secure is your employment and living arrangements?

This is important because if you need access to your cash right away, you need to pick investments that can be turned into cash right away (preferrably with little tax hits and / or bank penalties).

*In the past, I followed the 10% method. I placed 10% of my take home pay into a savings account. in your instance, you will place $36 into a seperate account each week. Over 6 months (not including interest) you will have saved $936 - if you were to place that money into a 6 month CD (which is VERY low risk) and it will make a decent intrest rate.

Answer 5

You've asked one question and then supported it with an unrelated rant with a quote that is two years old and no longer relevant. If Obama has his millions stashed away for safe keeping, he's doing what every other wealthy person does so it's really a non-issue. As for your rant, the wealthy have always paid more because they have more. Whether or not anyone thinks that's fair is doesn't change the fact that we've have a progressive system for a very long time now.

Answer 6

Buy a 4 unit house with a ten percent down payment then you live in one unit and rent the other three units out.Try and rent to older people like about 55 ish . keep your job and continue to build wealth.

Answer 7

yea i guess stocks. But that's a risk...it's like gambling.

and as far as real estate goes...real estate is good BUT it depends on where you live and what the market is like. I want to go into real estate as well. I live in Chicago though and at the moment the market isnt that great.

Answer 8

Don't ask or take advise from strangers. You don't know their motives or qualifications! Read a couple of good investment books instead.

Answer 9

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Answer 10

Real estate. Buy appartement or house, then rent it. What i know, the price of those things are never go down.