If you had to start out now what would you invest in. I don't have alot of money now so I might need to wait until I save about $5,000. What would you invest in? What strategy would you take to build up?
2007-03-18 11:29:48 · 12 answers · asked by Michael H 1 in Business & Finance ➔ Investing
one word.... diversification
invest your money in at least 5 different areas with no more than 20% of your total invested in each area
2007-03-18 11:32:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The problem with investing, is how much risk are you prepared to take and can you take the time to ride out the bumps which will happen along the way.
Recently the markets have had a rough time, the world we live in is much more turbulent now, and news travels faster than ever before.
This tends to mean markets crash quicker but recover quicker also as far as I can see.
The right investment does really depend on your attitude to risk, the greater the risk the greater the potential returns are.
In general I like safe slow and steady these days, however a few years ago I had £500 in a fund and annual I can change how many % of it I will risk in a a risk group.
So I choose the first year low risk and got about 5% return £525 I now have.
The followig year I went for 50:50 low and high risk, low risk got me about £15, however my total balance at the end of that year was aroud £890. The high risk eastern investment paid good.
The following year I split 25% low, 25% medium ad 50% high risk and came out with about £1200 in total, some years have been good and made ad others not so good and lost a few pounds on the previous years, but since the start I have done better than it sat in a savings account.
Since you are having to save the money first, it would suggest you don't have money you can afford to take a serious hit (loss), so I would look at low to medium risk, maybe split 50:50 to see how it goes.
Good luck with your investment, be wise if it sounds two good to be true it usally is, don't let the greed monster guide you.
Invest in stocks after a market crash, and the chances are you'll make a good profit in a month but do your homework well or you could end up with dummy stock.
2007-03-18 11:46:48 · answer #2 · answered by whizzbitz 2 · 0⤊ 0⤋
Start simple.
You say that you don't have a lot to invest at the moment (and that's okay; most of us start out that way!) But that will limit your investing possibilities.
First, very important question: what's your investing goal? Do you have an emergency fund (to cover basic expenses, if you lost your job or had to be out of work due to a disability?) Do you have a retirement fund started? Are you trying to save to buy a house?
All of these things are important factors to determine where and how much you should invest.
If you're not sure what your goals are, for now, I recommend you stick with something simple like an online high-interest savings account, like the one offered by ING, ING Direct.
That will also give you a decent rate of return while you consider what else to do and build up more savings. Good luck!
2007-03-18 11:47:06 · answer #3 · answered by ISOintelligentlife 4 · 0⤊ 0⤋
I would suggest you wait untill the CBOE volitality gets below 13.
First of all you need to learn to play the bull market then you can learn to play with the bear market. Never ever be a hog and put all your money in one stock you will loose too much. I can help you with this a bit I have read a few books and have learned alot and I started 2 months and two weeks ago with $200 now I am at 600 now I was up to 700 but the feb 27 correction took me down to 500.You must get Stock Investing for Dummies, and 24 Essential Lessons for Investment Success these books are worth every penny.Also you are going to want to set up an online account to better understand what they are talking about in the books you will have visual picture. do not set up margin account I have the best online broker there is and they are very cheap. If you email me I will send you right to them and let you know how to set it up and you don't have to deposit money till you are ready. my email is franksprung@yahoo.com I am more than happy with there service. I can help you out finding the things you will need to know on the site. It is almost impossible to loose all of it in one day. Most likely you will make money if you educate yourself.
2007-03-18 11:55:39 · answer #4 · answered by franksprung 3 · 0⤊ 0⤋
without knowing your particulars... age, income, investment objectives, etc....
if you've got $5000 to invest, that's not really enough to go out and buy a bunch of stocks.... if that's all you've got to invest, you should stay away from risky stuff like penny stocks.... better to leave the investing decisions to the pros.... find a decent no-load mutual fund... you'll be able to add to it whenever you get some extra cash, and it should grow over the long term....
check with your financial advisor, or if you don't have one, you can probably get some decent info from some of the online brokers that offer research on mutual funds.
if you get to the point where you have a larger chunk of money to invest, then you can get into individual stocks or bonds....but make sure you do your homework before you invest in anything.
2007-03-18 13:09:47 · answer #5 · answered by DOUG H 1 · 0⤊ 0⤋
You must find someone to help you. That would be me. I will need some seed investment money and I require $500 to start. But if you have only a hundred or even 50 Iwill accept that as "good faith" money for me to get started thinking.
2007-03-18 11:33:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Hi guy:
If I were on your foot, I will go to the bank and made a time deposit or ask them how can you make your money works.
Since I dont know anything about business, unless I am a business minded. I have to buy RTW , jewelries and perfumes to bring to the of the government offices who wanted my products to be paid every payday. But be sure they can be trusted or select the regular employees.
2007-03-18 11:44:54 · answer #7 · answered by princenikkotrade 1 · 0⤊ 0⤋
I would spend half of my invest money since you might get scam or the stock might go down...Probably apple for me because of the ipods and the new iphone coming out...
2007-03-18 11:32:36 · answer #8 · answered by ilshdw 3 · 0⤊ 0⤋
investing and eating have something in common; objective. you can get a fast return now or have your plan help you grow healthily.
example; McDonalds is fast and
ignores most people's health needs.
DAY trading is a fast way to earn $ IF YOU are very very good.
I do not and recommend against it.
I also do not eat at McD unless I have to.
READ Charles Given's
"Wealth Without Risk" and get back to me.
2007-03-18 11:34:03 · answer #9 · answered by kemperk 7 · 0⤊ 0⤋
Well i recently got a financial planner and he is the BEST...ameriprise...if you go on their site and give them your info someone will call you..and its free to ask info and suggestions...i recommend getting a financial planner..The safest investment is a CD because its FDIC insured..find one that has great interest rates....i think the highest i see was around 5%.
2007-03-18 11:33:10 · answer #10 · answered by myownsecretarydotcom 3 · 0⤊ 0⤋