Im 17 years old and i have about a thousand bucks in the bank. What could i do with it to make it grow faster?
2007-03-23 12:18:18 · 5 answers · asked by Ben10 3 in Business & Finance ➔ Investing
Good thing you ask, because your money is not going to grow much with it sitting in the bank. There are many different options that you can seek. The easiest is simply getting a CD from the bank and this is risk-free. This will pay about 2-4% depending on the length of maturity you choose. You can seek a money market account, which typically gives about 4-5% annually nowadays. Bonds are the next step up the ladder and they pay anywhere between 5-10% annually depending on the length of maturity. These three choices will definitely keep the value of your money close to or par with inflation.
Probably the best choice, although considerably more risky, is to open a brokerage account to invest it in some reputable mutual funds or relatively stable dividend-paying stocks. If this money was earned through a paycheck by working for some company, then consider opening a Roth IRA. This is a retirement account that will allow you to keep all your gains without paying a penny of taxes as long as this money is not withdrawn before the age of 59 1/2. I am also 17, and earned about $3000 this summer and opened one of these accounts on 12/6/06 and I am already up to $3900 thanks to Jones Soda Co. If you want to save that for college expenses, open a Coverdell ESA, which is also a tax-free account as long as the money is used for educational purposes like paying tuition or buying a laptop. But, if you are planning on using this money for some other expenses, then simply open a Regular account.
Since you are only 17 years old, you will need a parent to sign for any of these choices, but everything will automatically transfer solely to your name after you become 18 and free.
2007-03-23 12:24:36 · answer #1 · answered by homertorpedo 3 · 0⤊ 0⤋
Open a brokerage account at Zecco and invest in the ETF DIA.
2007-03-23 20:34:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Invest in your education. Most investment error is investing in someone else sale pitch.
2007-03-23 12:24:53 · answer #3 · answered by Nea'A 2 · 0⤊ 0⤋
Start a small business. sell candy bars or something.
2007-03-23 14:44:56 · answer #4 · answered by franksprung 3 · 0⤊ 0⤋
the best way to double your money is to fold it over and put it in your pocket.
2007-03-23 12:27:02 · answer #5 · answered by doc 6 · 0⤊ 0⤋