I curently have 7,000 to put toward my retirement. i am 23years old. and i am fulltime student with full time job. however, retirement CD's and do not intrest me as thery give 5-6 % max return.
Please suggest where and how should i invest for my retirement as i just have $7,000 as of now.
2007-06-15 11:03:42 · 2 answers · asked by jayis19 1 in Business & Finance ➔ Personal Finance
A good growth stock mutual fund has outperformed ANY other investment over EVERY 10 year period in the history of the US stock market.
2007-06-15 12:21:31 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
I actually just read a good article in Money Magazine. First, I would suggest that you pay off any credit card debt. I know it's not saving for retirement but it by far offers you the best return. The other suggestion is to invest in the T. Rowe Retirement 2045 mutual fund.
From the article "This target-retirement fund, ideal if you plan to retire in 2045, gives you a fully balanced portfolio that gets more conservative as you age.
The fund currently consists of 89 percent stocks - the bulk of which are U.S.-based - and 11 percent bonds.
Over time the allocation to bonds gradually increases as the stock allocation decreases to reduce risk."
I would invest the money in a ROTH IRA that way you can take distributions starting at age 591/2 and not pay tax on the gains. It is pretty pain free and you can set one up with Scottrade, Etrade, TD Waterhouse Ameritrade or any other discount broker. If you want to get more involved I would say look into the resources at Motley Fool.com or Morningstar.com
Good Luck
2007-06-15 19:07:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋