how should i invest for college as a teen-live in atlanta?

Question

i`m 16 years old and considering in getting 2 certificate of deposits for $500 each(one for 6 mths and the other for 1year)and i gotta go to college in 2 years and i`m not going to live in a dorm or with my parents. should i just get a mutual fund when i have $1000,plus should i get stocks at all at age 18 or just stick to MMA, and bonds. I wanna know whats gonna give me the best return and i dont wanna wait too long to see the $$$

Answer 1

Money doesn't just come overnight.

I wouldn't be expecting $30,000. From your $1,000 for a few years investing. Though, A few people will get lucky. Very lucky.

It depends, What is your risks tolerant. Will you be okay. If you lose all the money? In the stock market. Or, half of it. Are you going to be adding money, to the 1,000? These are some questions to ask yourself.

If the money is important to you. And, you don't know a lot about the markets. I would see, if your parents understand the stock markets, very well. Most don't. Then, go talk with an investment advisor. Then another advisor agian and again. Make sure, he cares about your money. Some, brokers will just want your commission. I like a lot of A.G. Edwards advisors.

Thats all if you want to invest into stocks. Which are riskier, but should produce better returns than a bond. Take your time in chosing an advisor too.

If you don't want to risk your money. Stay with the bonds. Which should return a lower amount. Some years, Bonds do a lot better.


But, you are young. And they are loans for students now a days. You should be investing a bit riskier, than a 50 year old. That has already built wealth.

Answer 2

Given your short time horizon, stocks or equity mutual funds are absolutely the wrong answer. Since this is money that you need, and need soon, a CD or money market fund is really the only acceptable investment.

The downside, of course, is that you won't get much return. Certainly not enough to turn $1000 into enough money to get an apartment in Atlanta. The upside is that you will still have your $1000 in 2 years, plus a little bit of interest.

Answer 3

At your age and with the ammount of money you have available, I would suggest an agressive mutual fund. Over history, equities (stocks) have been the best investment for returns. Keep in mind, equities have risk. You could lose money in the short run. You should research the mutual funds history, risk factor, management, fees, etc and make the best informed decision you can Good luck.