investment help?

Question

im 20, and i want to start investing for the future. is there something i can throw my money into, get around 6-9% interest on, and be able to take it out anytime i want with no penalty? i heard i could just buy a mutual fund with some stocks and bonds, without buying an IRA. true or not? maybe something where i dont need to be 59 1/2 to withdrawal. thanks

Answer 1

The best thing that you can put your Money into is your education. Many people have ideas, some good and others questionable. YOU have to have the knowledge to sort out what is correct. Suggest that you make friends with a local bookstore and start reading. There are many great books out there but it is for you to decide what is good and can help you and what is doubtful. Also a great investment is a really good financial planner. Make sure that they are independent. If one doesn't charge you fees. where does he get his income from? Probably from commissions on products that he sells you. My planner charges $3,000 up front, but his advice has been invaluable and is getting me about 15% return, which far outweighs what his fee is...you get what you pay for. Those that try to do it on the cheap or without knowledge usually loose most of it. And always remember the rule of 72. This states that if you 72 by the interest rate you receive, that's how may years it will take to double your money. eg if you receive 12%, 72/12=6, so you will double your capital in 6 years if you take nothing out. Wow, the power of compounding. Just think what 15% is doing to me, double in under 5 years, $10,000 becomes about $200,000 in about 20 years. (Not bad value for that $3000 fee!)

Answer 2

If you put money into a Roth IRA, I think you can pull it out again after five years with no penalty, and just leave the interest in. So, probably not what you're looking for, but you don't have to wait until 59 & 1/2, either. You can also get money out of a Roth IRA to buy a house, too, I believe. 6-9% interest is more difficult: you could get 4% interest on bonds, I believe, maybe 5%. Since they trade on the market, you can sell them again before they come due. Personally, I'd put it into Exxon Mobil and watch it go up, but that's a little risky if you could need the money at anytime, because it might be a down week. When you say "throw my money into" it sounds like you don't want to do much work, and have low risk and high reward, and the market just doesn't work that way. So, decide which is more important to you, access to your money at anytime or a good rate of return, because it's pretty hard to get both.

Answer 3

Mutual funds look like your best choice. You can buy them outside of a retirement account and they offer long term returns that are in your range.

Just remember that these gains aren't guaranteed. In any given year you could gain more than the long term average, gain less, or even lose money.

I suggest that you stick with funds from companies that have a reputation for low fees. That would include Vanguard, Fidelity, and T Rowe Price.

Another issue is that you need to save enough for the minimum initial investment. I am familiar with Vanguard, and their minimum initial investment is $3,000 for the majority of their funds. After you own the fund you can make additions of $100 or more.

Other fund companies have different minimums. $1,000 is quite common. Shop around until you find something you like.

Answer 4

ING Savings Account is pretty good as well but has a slightly lower rate at 4.5%. The positive it has, is that it probably has the lowest risk.

Answer 5

buy 10 stocks with dividens when market drops
you must buy 7-10 on same week