i got a couple of hundred dollars, what should i do with it??

Question

i dont know if i should invest it or just keep it in the bank.... does anyone have a good solution to what i should do? and if i were to invest like in stocks or something, what would i have to do to? should i go to like a stock broker or soemthin? -thanks : )

Answer 1

There are a lot of issues that are a part of the decision. How long can you invest it? Can you accept the possibility of losing on the investment? If it is a long term investment that you would continue to add to, then I would suggest a mutual fund. If you can afford to lose it, then put it in an aggressive fund with higher risk but higher return possibility. If you can't keep it there long, then a savings account is best.

Answer 2

Take it to the nearest casino and put it on one hand of blackjack or "black" at the roulette table. A couple hundred dollars isnt really that much to invest but if you double it you have some serious cash. Then I would invest it. The easiest way would be scottrade or some place like that on-line. They usually give you pretty good investing tips and it is a lot more fun to do it yourself, especially if you succeed. Good Luck

Answer 3

I would try to save a bit more then go to an on-line account, due to fees. I full service broker is not cheap...however in some cases you do get what you pay for.
You need to be over 18 yrs old to trade. And do your research! If you get a hot stock tip from your barber...it could pan out, but try to remember there is probably a reason he is cutting your hair and not working in a brokerage house.

Answer 4

You should have one yrs worth of money to live on for bills, food, insurance, etc. in the bank before you think of investing. Emergencies happen every day and you don't want to get caught without anything to fall back on in times like these.

Answer 5

First and foremost, do you have credit card debt? Pay that down! It's like getting 12.5% to 22% TAX-FREE!

Second, begin building your emergency fund. You should have about 6 months worth of your typical expenses stashed away for emergencies. Trust me they crop up, and from someone who bounced a fair number of checks, & run up a credit card on car repairs in his day, this little security blanket can more than make up for itself in added costs. Personally I like to have about 2 months as a buffer in my checking account & the balance I have at an Online Savings Bank account that has an ATM card. I would look more at the services & liquidity an option has then what your going to make on it. (I got better things to do then chase 0.2% additional interest on a couple hundred bucks.) Online Savings Accounts (HSBC, ING, Emmigrant), & Money Market Mutual Funds probably are your best options for returns & services.

Once that's done look at your financial goals (next car, education, home downpayments, trips, etc), and start saving for them. The shorter term higher priority goals should be invested in liquid investments, longer term lower priority goals (and by priority I mean how absolutely you need to have the assets on a particular day - you want to start a Master's in two years, that's high, somewhere in the future you want to go to Scotland, that's low) can be invested in stocks or if your starting out a mutual fund. Mutual funds are a good way to start out and if your investing a smaller dollar amount.

The big goal for most investors is retirement. If your making more than you need are you contributing to a 401K plan your company offers, you should be, at least enough to get the maximum the company offers in matching. Got that done, if your young yet, and really don't need the funds think about funding a Roth IRA. With the Roth, you plop money into it (check the web for the current limit depending on the year & your age), and can invest it in stocks, mutual funds, bonds etc and then you don't have to pay tax on anything you earn inside, nor when you take out the funds in retirement. Its all tax-free $.

Roth fully funded, and still have too much free cash flow (and here most of us start thinking your a lucky SOB) you can ramp up the rest of your 401K contributions (a few places even have the new Roth 401K's.)

OK, so your credit cards are paid off, you got 6 months of expenses in savings, you've got savings/investments tagged for all your future goals, your getting your 401K match, you've funded your Roth, now you can start building your portfolio. Tehy call them securities, because that's what they're supposed to give you. Building a portfolio of stocks & other investments is to allow you to slowly build to the point where money is not a concern. Like Mr. Gump said about money "..which is good, it's one less thing."

There are lots of books to help you start, my personal favorite is The Only Investment Guide You'll Ever Need - Andrew Tobias, but there are others (just avoid anything that is telling you there's a gimmick to beat the market, there may very well be but trust me, by the time you learn it it won't work anymore.) Start with names you know, S&P Reports & Value Line are excellent resources usually available at your public library.

Has all this got your head spinning? Then you may need to see a financial advisor, it will cost you a little to do so & don't be afraid to talk to a couple until you find one your comfortable with. But paying the extra for good advice is better than doing nothing at all.

Answer 6

I suggest you read the following site. It explains how invetsing with very small sums of money can hurt your returns quite considerably in the short-term due to the minimum brokerage fees eating away at your capital.
http://www.nabloid.com/brokerage-fees-hurt-your-return-on-investment/

Answer 7

no, not for that amount. youre on the right track though! if i wanted to save it, i would open/put it in savings account and build my investment nest egg larger for later. then i would look at a IRA. (i think you can put 1000.00/year in a IRA)

if for some reason thats no good, i would put it in checking and have it for rainey day.

Answer 8

Everyone else has it right. Sell something you own that might bring in the amount of money you need. Get a job. Borrow it from your parents but, make sure you repay them.

Answer 9

Pay an extra payment on your car or house, that cuts back on the interest

Answer 10

If you are truly undecided, send it to me and i will invest it in some real good fishing equipment....lol