I want to start investing my money but I don't know how or where to start. I hear that it is really good to invest your money in CDs but I don't know much about them. How much do you have to invest to get started and how long does it take to mature? I don't know if I should even invest money now or wait. I only have $2000 dollars that I could invest but I am a 21 year old college student and I don't know if I should just keep it for a rainy day. As of now (about 5 years) that money hasn't been touched but sitting in a savings account collecting less then $15 dollars a year. I just want to know if I should invest in CDs or if not what should I invest in? Is there any risk in investing in CDs?? Thanks very much.
2007-03-27 13:02:34 · 12 answers · asked by mzmalibu_69 2 in Business & Finance ➔ Investing
CD's aren't a bad idea for helping you save your money, plus they help you earn a little better interest than most savings/checking accounts. They are FDIC insured, so your principal (i.e., the 2000 dollars) plus the expected interest, are guaranteed.
There are other investment products - dividend paying stocks, bonds, bond funds, mutual funds, etc. - that actually pay higher dividends or that might grow in value, thus beating the return on a CD, but, none of these have that added benefit of insurance!! People can (and do) lose money in stocks, bonds, mutual funds, etc.!
So don't scoff at CD's, they are excellent for your financial situation until you have more money and can afford to take on more risk. For now, I'd play it safe. Later, you might want to start gradually putting money into a good growth-and-income mutual fund, something to which you contribute, say, 50 or 100 dollars a month. (Vanguard, T. Rowe Price, Fidelity, American Century, etc. all have excellent choices in that area. Look them up on the Net.)
Also, I would avoid putting the money in a higher-interest savings account like somebody else mentioned, the reason being that it is too easy, and too tempting, to dip into that account and spend your money. With a CD, your money is "locked" away until the term expires, which means you can't touch it without incurring an early withdrawal penalty. I've always found this is an important and useful way to get you to keep your hands off your own money, which, believe me, is one of the main reasons why so many people have so little money in savings - they just can't stop from spending it!!!
So try a CD for a short term, say, three or six months, and see how you do with it. Good luck!!
2007-03-27 16:08:29 · answer #1 · answered by Col. Kurtz 3 · 2⤊ 0⤋
1
2016-12-24 06:57:12 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Hi there,
You should try with Penny Stocks Trading (you can find more info here: http://pennystocks.toptips.org )
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.
I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions. Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Be careful! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits. This is the site I'm using: http://pennystocks.toptips.org
Have a nice day
2014-09-22 10:25:52 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Are Cds A Good Investment
2016-10-28 10:32:48 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Cd's (certificate of deposit) are 1 of the safest ways to invest your money. You can invest as little as 500.00 You can put it in for 6 months, a year, 5 years,etc. When it matures(the amount of time you put it in for) you can withdraw with no penalty or add more money to the cd. The only thing is the interest rates are down. Of course that's with everything right now. The longer you invest for, the higher rate it will pay. Hope this helps.
2007-03-27 13:12:06 · answer #5 · answered by DOT 5 · 1⤊ 0⤋
CD's are a nice, safe investment that you can get into with practically no knowledge at all. If you buy a CD at a bank, it is FDIC insured, so you don't risk losing it unless you go over their maximum insured amount. Amounts and length of time vary, you can get one to meet your needs. If you can commit your money for at least three months, it beats a regular savings account.
2007-03-27 13:11:12 · answer #6 · answered by Brian G 6 · 1⤊ 0⤋
CDs are always a good way to go. You can get one at your bank. They can be short term 3 mo to long term 5 yrs. Another way to go is INGdirect.com they pay over 4% interest and it is linked to your bank account, so that you can transfer it anytime you need it.
I had $2k at your age in an annuity and I wish I left it there - it would be worth a lot now (I'm 40). but like a dummy I took it out to pay some bills. Once you invest it - just forget it -and let it grow.
2007-03-27 13:43:12 · answer #7 · answered by supurdna 2 · 1⤊ 0⤋
CD's are "okay" options. They often have a higher yield than a traditional savings account. However the money is "locked" there and you have to pay penalties for early withdrawel.
If you're handy with the Internet, why not check out a high yield savings account? EmigrantDirect.com and HSBC are both offering high yield savings account.
It's quite simple to set up, you link your current checking account to the savings account, wire the money, and wait for it to transfer. I currently use Emigrant, and for either sending or receiving takes three days. That being said, I have a 5.15% APY, and no minimum to open. I couldn't even get a CD in my area with that type of APY.
If you're wary of this, why not check with your local credit unions? Maybe even the university has one you can join, and their savings accounts pay (usually) more than a traditional bank.
Good luck!
2007-03-27 13:10:45 · answer #8 · answered by Anonymous · 1⤊ 0⤋
This penny stock service has years of proven experience. Ultimately it is the best service for beginners to use https://tr.im/MzrjC
You will have to wait between 3 and 10 days to get into the system in most cases. When I signed up it took 8 days. I wished it was faster, but if you can wait a week or two to start earn life changing money than you will have what it takes to make it in this business.
2016-02-15 18:08:50 · answer #9 · answered by Anonymous · 1⤊ 0⤋
CD are not investments just longer term savings accts. Not going to do well in them but not risky. No reason to avoid them if just have $2000. As you build up over time need a brokerage acct to increase your options to actual invest
2007-03-27 13:27:30 · answer #10 · answered by vegas_iwish 5 · 1⤊ 0⤋