I have a full ride to college and have a job on top of that. needless to say, i have money. How can I invest my money risk-free? I dont want to play the stock market. I was thinking about buying cds and keeping them for a while then selling them when the value increases. What else can I do?
2007-06-13 13:08:16 · 9 answers · asked by Anonymous in Business & Finance ➔ Investing
How can I invest my money risk-free?
Easy, you can not.
Sure many people will tell you they remove risks, when they really mean they offer to lower your risks, usually with some benefit to them.
In Australia millions of dollars recently disappeared from secure no risk debenture investments in bricks and mortar...
You can reduce risk of losing your money, understand the basic risk return rules are lower chances of losing your money means lower returns, and learn the real risk involved with any investment.
Assume your not wanting play stock market means you wish to invest, not need watch each day.
Generally investors look longer term, traders shorter term though honestly is hard to tell difference sometimes.
Buying CDs to earn money as they age and increase in value depends greatly upon your knowledge to select right CDs for their scarcity and related values to increase.
The same risks as shares, perhaps higher.
There are shares in companies that have provided constant returns year after year after year, both as dividends and as capital gains from increasing share values.
Buying a store where stock you buy to put on the shelves to sell to shoppers is really very similar to share trading !
Selling a car, a house, a boat, your labor, anything... similar to share trading !
End of day all are about obtaining something at a value you recognised then selling it for a higher value.
After cover all your costs you may earn some extra return or income :-)
My advice is learn a little more reading Yahoo's Finance Help pages about invesment and return, these pages are very helpful ;-)
2007-06-13 15:06:53 · answer #1 · answered by pol_pak 3 · 0⤊ 0⤋
Put it into Canadian dollars. They are predicted to hit par with the American dollar and (Assuming you are American) you will make a pretty penny. The risk is that the American economy will suddenly recover and G.W. Bush will stop being a fool.
I was in your boat, i had university and a job but i invested badly and the job didn't pan out as well as i had hoped.
Good luck with it!
BTW CD's give you the absolute lowest possible return for your money. A bank account would be better because then at least you have access to it.
I also agree with the other poster who said to avoid real estate. You have to pay tax on it and it can depreciate (as it is now) very quickly. If it appreciates you have to pay more tax and you have no cash flow from it. Either way it's a bad decision.
2007-06-13 18:17:04 · answer #2 · answered by Ninja grape juice 4 · 0⤊ 0⤋
For a little more flexibility than CDs, there are also money-market funds and short-term bond funds. Or if you have enough money and are certain of when you will need the money back again, US Treasury bills and notes (I'm guessing you won't have enough fixed time to buy a Treasury bond and keep it the whole 10-30 years.)
But your request for 'risk-free' limits the choices a fair amount.
P.S. Don't listen to the poster above who mentions Kiyosaki. Not only is Kiyosaki a scam artist ex-Amway salesman who gives bad advice, but real estate is clearly inappropriate for your situation.
2007-06-13 13:27:32 · answer #3 · answered by enoriverbend 6 · 0⤊ 0⤋
How about a small home business. The tax benefits are great. Something on line that is not hard to do and won't jeopardize what you are currently doing. One with a good track record and has 3 growing trends incorporated into the business model. If you want to know what I am talking about send me an email.
2007-06-13 13:18:00 · answer #4 · answered by amysgetaways 3 · 0⤊ 0⤋
Put your money in a Vanguard Mutual Fund Family Money Market Fund earning 5.2 %.
2007-06-13 13:15:56 · answer #5 · answered by Michael L 2 · 1⤊ 0⤋
All wealthy people either made their money in or keep their money in real estate. Invest in a rental property and you'll have even more income. You might want to read Rich Dad/ Poor Dad by Robert Kiasaki.
2007-06-13 13:20:51 · answer #6 · answered by Pmcanelly 2 · 0⤊ 3⤋
Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.
http://www.tutorialforyou.net/investing/
wish it will help you.
2007-06-14 04:41:21 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Well arnt you special, why don't you call up mommy and daddy to do it for you.
If the first words out of your mouth where not "I have a full ride to college", I would have been more polite, but seriously.
2007-06-13 13:32:10 · answer #8 · answered by J. 4 · 0⤊ 3⤋
Why don't you find a financial planner and map out your financial life now, while you are young .
2007-06-13 15:46:01 · answer #9 · answered by bob shark 7 · 0⤊ 0⤋