best investments?

Question

im am 16 years old and just starting off in the stock market. I have $7000 to put in, i know how the market works but what is the best business to invest in? i am on a 10 year plan until i can take out the money. thanks, oh yes i almost forgot tips will be great also. Thanks again!!

summer job and never spending birthday money =)

and i have $15000 in bonds so it will increase. i will get it when i am 25.

Answer 1

Impressive, congratulations.

Keep some in savings, but take a gander at these exchange traded funds (ETFs), which trade like common stocks but are very low cost mutual funds that simply buy a preset basket of stocks: NY (100 biggest companies on the New York Stock Exchange), DIA (the Dow Jones Industrial Average), SPY (the Standard & Poors 500 companies), DVY (Dow Jones select Dividend Yield stocks), IOO (100 biggest publicly-traded companies in the world), and PXN (the biggest players in nanotechnology, the next big thing in technology, some amazing stuff coming). Mix and match as you feel comfortable. These are things that you can buy and simply forget them, low maintenance investments in some of the biggest and best companies around. If any of these funds fold, well the global economy would have to be in such a wreck that it wouldn't matter where you had your money.

Answer 2

With $7000 to invest and a 10 year plan, I would suggest a diversified portfolio. But first, the investments: 1 CD's will get you roughly 5-5.5% interest per year and no risk. 2 AA corp. bonds yield 5-6.5% some risk, mainly from increase in rate increases. Stay away from all collatteral bonds. Mutual funds range from low to high risk. Rate of return can be from 8 to 15+%. Go to Morningstar,com which rates over 1400 funds. Pick 7 funds with 5 star ratings. You probably need a parental custodial account. Learn all you can about the funds industry. No stocks!

Answer 3

Put your money in the bank and forget about it.

What subject or subjects interest you now?

If you know the answer to this Q, invest one hour - 60 minutes per day - reading about that subject or those subjects. You can get those books at your local library AND some additional, more current info on line.

IF you discover a book you would like to have in your own home library, THEN invest the money to buy that book or those books.

2 comments:
1] The only stupid Q is the Q you don't ask.
2] So you thought and think education is expensive? Just wait until you try ignorance.

Thanks for asking your Q. I enjoyed taking the time to answer it.

VTY,
Ron Berue
Yes, that is my real last name. .

Answer 4

You need good advice.

Try Morningstar University. It's free.

Mutual funds are a better bet than stocks for most people. especially those with under $1,000,000

Once you know how stocks and mutuals work, subscribe to Hulber's Financial Digest, find the best newsletter that suits your goals, subscribe to it and follow it religiously.

Answer 5

the best bet is to diversify away systematic risk that is company specific risk. that being said you should look for index funds that mimic the market. you should also look for foreign index funds. sharebuilder.com is a great site to open an account with and they have a free investment guide.

Answer 6

Hi firend mutual fund can help you a lot.Just take a look at the below link to get free information regarding stock market.

Answer 7

wow...16yr old and already start planning...that's great!!! maybe u wana check out this website www.wdf-usa.com maybe will not last ten years but at least 3 years from now... have a nice day!! cheers! [e-mail]

Answer 8

Where does a 16 year old get $7,000!