Can anyone give me a investment suggestion for my money?

Question

I just turned 18 years old and have about 50 grand in the bank that i plan to invest sometime early in Feburary (When my GIC bond expires). What i'm looking for is a good mutral fund that would give a good ROI. Since i'm under 21, I don't want to consider investing the money in a down payment for a house,,,,,
If you have any other suggestions for investing my money please tell me...

Answer 1

You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education

Answer 2

50 grand at 18 - what a great deal. And you want to invest it instead of buying a beemer! Wow you are mature for your age and could set yourself up very nicely for the future. Saving should be safe and for the short term, investing requires taking some risk and is for the longer term - at least 5 years. The 5 years is just a guideline - the point is investments e.g. stocks and bonds go up and down and sometimes down and stay down for several years - you don't want to "invest" and plan to use the money in 3 years as a downpayment because the market might be down just when you need to take your money out.
So, think about the amount you want to have safe for savings and put that into CD's or a good money market fund (Vanguard Money Market Prime for example).
Now the money you want to invest should be diversified between US large company, small company, and international stocks and some short and medium term bonds. Rather than get complicated and expensive you are best off with a mutual fund that does this allocation for you. For my daughters at your age and even now I put them in the Vanguard Star fund. But Vanguard, Fidelity and T.Rowe Price all have Balanced, Target allocation or Target Retirement funds that can take your investment and allocate it for you and reallocate it as the market changes. Investments have risk but actually by spreading the investment among different types of stocks and bonds usually when one type is down some other are up - so you don't get a rollercoster ride.

Answer 3

Put the 50k in ING Direct online bank that pays a high amount of interest.

While you are doing that, go out there and read 50 books about investing.

Once you read all 50 books, then decide what to do with your money.

I guarantee if you do that you will be far better off than doing anything anyone is telling you to do on here.

Some books you should include in those 50 before deciding what to do with the money is "Beating the Street" by Peter Lynch and "One up on Wall Street" by the same guy, "Value Investing with the Masters" by Kazanjian, and "The Essays of Warren Buffett".

Raiddinn Beatdropper

Answer 4

Sorry to dampen your hope. But this is known as the Nigerian scheme. They are conman out to cheat. I suggest you laugh it off and forget this get rich scheme. Alternatively if you are smart you make sure they send you money and but you don't send any. Many people around the world has been conned. But surprisingly many people still got trapped even when news of it has been made known to the public. Really, be careful. i rather you give the money to the poor than to be swindled by those bastards. Take care

Answer 5

Andy's suggestion prompts me to say;

Don't take investment advise from strangers whose qualifications and motives can't be verified. Any suggestion on monthly returns 1% or over should be run away from as quickly as possible.

What you really need to know can't be covered in this limited space. Read a couple of good books on Mutual Fund Investing (a good one includes the "Dummy" series).

Doing anything less is simply gambling. The number one thing you can do is acquire more knowledge (as you're trying to do)..............................................

Answer 6

i suggest an alternative; do not do any passive
investing at all [any stock market]. Instead,
find someone in your community who is seeking
an investor/partner. Hire a biz atty to rep you
and review biz plans.

YOUR return will be much higher and you can
WATCH your investment grow and you can
actually AFFECT the return--whereas in
buying stock, you cannot.

I will work with your atty and CPA for free.

Answer 7

Consider the couch potato portfolio that can be found on this website below. It is relatively low risk and it's returns beat most mutual fund managers.

Answer 8

Three month ago I find this side by google, and join.
Click on English section, and try to read their explanation,
maybe this one what you looking for.
http://www.peluanginvest.com/?id=simalango

Answer 9

nobody can exactly tell you 100% returned,but split investing
or lump sum in one .

Answer 10

read: http://investment-blog.net/about/
invest:http://investment-blog.net/2007/08/21/these-future-bull-which-are-undervalued-and-its-worth-to-buy-and-hold-for-next-coming-six-monthssewcobjuniob/