What's the best and most reliable investment that would cost under 5k?

Question

Also, can someone tell me how someone under 18 can go about making money on line?

I reside in Florida but have access to go to about any state in the east if it's worth the trouble, does anyone know or can think of anything inexpensive (under 4k each) that would be worth buying in any of these states (including my own) for resale and profit, it can be bought on line, new or used, can be things as big as cars to things as small as phones.


Thanks

It can also be SOLD online too

Answer 1

You want the 'best and most reliable' investment... If you want safe, safe, safe, put your money in a treasury bond. You'll double you money in 12 years. OK, assuming you'd like to make more money, look at your bank's Certificates of Deposit. They pay a bit more than Treasury Bond's and are no risk.

If you'd like to add risk there are many options for you short of putting it all into a business that can fail. Try an IRA that will allow you to avoid paying taxes on your earnings until you retire.

If you owe any money on a credit card, you should pay those off since you're probably being charged >10% (Think of it as 10% you're not earning!)

Also consider researching a "No Load Mutual Fund" that's paying a decent amount of return. "No Load" means you don't have to pay any up front fees to have them invest your money. You can look up mutual funds online. If the mutual fund is making 9% annually, you will double your money in 8 years! If it's making 15%, you'll double your money in less than five years without doing anything at all. Be careful when investing your money. Anyone who recommends a specific fund for you to invest in is trying to sell you something, so get it in writing, then read what they give you to see if it matches. I've seen unscrupulous brokers who think that people really don't want to be bothered with the details of their investments, so that's how they make their money - charging transaction fees, unreasonable maintenance fees, etc.

Be careful of listening to your friends or family unless they are already rich. Be careful of investment advisors and investment planners. (If they know so much why aren't they already rich and not working?) See what I mean?

If you invest in the Stock Market, you are incurring risk, plain and simple. There are no sure things, but you'll find that investing in mid-sized and larger growing companies will produce a moderate return for lower risk.

I hope to read a question from you in ten years that asks, "Do you know of charitable organizations that I can donate a couple of million dollars to?"

Note:
I know you're under 18 from your question, so I'd like to offer you some info. This will seem amazing, but this is true and can be verified by using the formula for accrued interest: If you were to invest your $5000 right now in an IRA...and never add another dime to it ever again... You will end up with more money from this investment when you retire at 55 than a person who starts investing at 35 and deposits $1000 every year for 20 years until he retires. (at 10%, $200,000 vs. $100,000!) Please ask a parent or trusted relative for advice, but if this is your money, treat as such, YOU should make the final decision of what you're going to do with it. Don't be bullied by someone who would probably love to get some of the money for themselves. Sounds cynical but I've seen it happen many times.

You want the real secret of reliable investing? Interest Is All About Time. The longer you let your interest compound (add up) the richer you'll be. If you could invest your $5000 at 10% compound interest for 10 years, you'd have $13, 535. For 20 years, $36,640. For 30 years, $99,187. No kidding.

If you are serious about making serious money, set a goal to have a certain amount of money by the time you are 30 (let's say that's just 12 or 13 years away. You could use this $5000 to build a savings account balance of $35,000 without adding anymore money if you pick the right investments and manage them actively yourself. Remember that your jobs will pay more and more as you get older, finish school and find a career that interests you. You'll be adding money as you go. It just a matter of Time!

Good luck!

Answer 2

Without knowing anything about you,and not knowing if you will need the money.I would say get a cd from you local bank.
Since your under 18,I'd try working in your neighborhood for a few extra $.Boy or girl you could cut grass,do yard work,house cleaning,detail a car,baby-sit,or whatever.
Their are a lot of scams on line

Answer 3

Buy Altria (Symbol: MO). There's an investment you can hold for all of time...all those smokers will keep on smoking and making you money.

Answer 4

Try Mutual Fund

Answer 5

You could buy a franchise of a business. They want you to suceed and it doesn't normally cost much.

Answer 6

If I understand your question, you want to trade in something. Do you have any hobbies? If you pick something like American coins, then its very helpful to know a lot about them. And a hobby usually indicates that you have an interest in that area...

Answer 7

a small cleaning business perhaps