So...does anyone out there have any suggestions about what sort of savings plan can yield the most amount with just a little bit invested to begin with? Does something like that even exist?? Does it really "take money to make money"?
2007-06-26 00:50:40 · 6 answers · asked by phlebotbre13 1 in Business & Finance ➔ Personal Finance
'a little bit invested to begin with' grows into a large sum over a long period of time -- decades.
It helps if you add to it regularly.
It also helps if you build an overall financial plan so you can confidently invest in ownership of assets [equities, businesses, property] instead to lending money to people who do own assets.
alas, you also have to stay ahead of the tax gatherer and inflation.
GL
2007-06-26 01:01:18 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
Depends on how much you want to save. If you are talking about $100 per month, you should get a money market account and just put money in and don't take it out.
You could invest in stocks or mutual funds, but those become a lot more cost effective when you have over $5,000.
Stay away from an annuity no matter what. They have horrible penalties and pay very bad rates. I am recommending a money market account because you can save up, with no penalties, until you find a great investment. Whether you decide to invest in your own company, a new house, or mutual funds in the future... it is wise to start savings now.
2007-06-26 02:49:20 · answer #2 · answered by MR MONEY 3 · 0⤊ 0⤋
One of the answers given you referred to playing penny stocks. This is just plain wrong (ignorant).
There are many ways to start investing with small amounts. Many Mutual Funds offer accounts that can be started with very small amounts as long as you invest a minimum amount automatically each month.
You can also build up a savings account until you have more cash to invest.
Check out: www.ingdirect.com and www.GMACBank.com
It takes hard work to make money. Investing takes capital and hard work. Both are worthwhile to get involved in.
Take 12 months or more & read everything you can on investing. Doing less is not investing.... it's gambling (and you will lose).......................
2007-06-26 01:12:57 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
A 401K is good because you never see it going out of your check. It can grow without you knowing it even if you only put $25 -$50 per pay check.
Playing penny stocks also helps if you join Ameritrade or a similar stock investment company. I bought a stock on day and sold it the next and made $1500. This is called day trading. It is a risk, but if you study it before you invest, you can make a lot of money, or you could lose it as well.
2007-06-26 01:05:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Check out my website.
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2007-06-26 03:53:05 · answer #5 · answered by Blicka 4 · 0⤊ 0⤋
If I were you, I'd start now with a tax sheltered annuity to supplement your retirement. The more you put in each month, for the longest amount of time, the more moeny you'll have.
2007-06-26 01:14:42 · answer #6 · answered by batgirl2good 7 · 0⤊ 1⤋