Investing tips?

Question

im 15 about to turn 16 working full time while still going to school and was wondering on what to invest into? i have about 15,000 saved so far. I am currently recieving two checks one from work around 800 a month and 1.650 a month from a death that happend way back. but i am interested in learning what to invest the money i have saved into, i am buying and selling random items and making good profits like ipods, games, ect. but with work and school i cant go out and find the stuff that i usually sale so if any one has tips on what to invest to it would be greatly preciated. Thanks

Josh

i have been working since i was around 12 but i wasn't really investing untill i turned 15 but im about to turn 16 in april so i wanted to start investing for the future even though its a while away i still want to be able plan ahead i just sold 1754 shares of ford common stock which was given to me from my dad and when i turn 18, im recieving 30,000 and working full time 800 a month plus the 1650 is about 2000 a month when u take out the money for helping paying some small bills for my mom and the cell phone bill but im looking into the cd's but im still not fully understanding them is it like a intrest making investment of a percentage increase yearly? thanks for all the answers !


josh

Answer 1

Josh, you are an amazing young man. Your attitude is great. With your kind of income, the earned income of $800 per month, you could start preparing to start a Roth IRA when you are 18. Obviously with 15,000 saved already, you have a mom or dad to help you. You could be earning in a Money Market account 4% or in a CD 5+%. Hopefully you have already done that.

Look at T-Rowe Price's Capital Appreciation Fund or American Funds Capital Appreciation Fund. Fidelity and Vanguard also have these kind of funds. Look at good growth mutual funds. Yahoo Finance has a mutual fund screener that will help you find something good. At your age, you can be a very wealthy young man some day.

At your age, to start out in a capital appreciation fund, but then start diversifying into some Small Cap Growth funds and some Mid Cap Growth funds. By the time you are 18 to 20, you should be 50% mid cap growth, 30% small cap growth and 20% Capital Appreciation. Look in Yahoo Finance for these terms.

After you get your college out of the way, you can start reading about value investing and other techniques, look at real estate, etc. The sky is the limit. Alway be conservative with part of your money, but try new things with money you can afford to lose (that is a small part of your money).

Answer 2

Well, if you want to invest in mutual funds or the stock market, it will require someone of age to open the account. Being a minor, you won't have control over those funds. Do you plan on using these funds for college? Perhaps a CD or money market account will yield you a higher interest rate.