What should I invest my money in?

Question

I am 27 years old. What is a good program to start saving my money in so that I can retire with plenty of money to pay the bills when I get older?

Answer 1

Well, Peter Lynch says stocks are the way to go. Historically, they do the best with an average return of 10% even including the worst times in the market. Since you're only 27, you'll want to invest a bit more aggressively than if you were 65.

What you should invest your money in is a highly personal decision. You should research stocks to find out if they are good -- low debt, consistent earnings quarter to quarter, and perhaps some inside ownership.

Since you asked about a good program, you might want to learn about dollar cost averaging at the link below.

Good luck!

Answer 2

You should try an Add-On CD. It works the same as a normal CD, but they normally cost less to open, and you can add to them. First Tennessee Bank offers one that you can also do a withdrawl from every six months without losing any interest invested. As your CD grows, and your financial situation gets better, you can transfer the money into bigger, higher yeilding CD's. Also, enroll in 401k. Even if you only invest 2% of your pre-tax earnings, it really adds up and after a while you don't even realize it's coming out. I'm 20 and I already have several grand saved by these methods. I started an Add On CD with 500.00 when I was 16, and I've added 100.00 a month to it. I get a 4.25% interest rate, which is low, but with the flexiblity of that CD, it's been awesome for me. I've only pulled from it one time since I've had it... you do the math. It's awesome. :) Good luck!

Answer 3

If you really want save money Here ...Cut off all junk food including coffee and donuts Buy your clothes only when its on sale and you need it Keep your car as long as you can You a budget and follow it stricly Your first buy should be a duplex You in one appt and you rent the other one After this block is 30 per cent paid you buy a trplex We did that and we are well off today Good Luck

Answer 4

If you want a hands off approach then visit vanguard.com and learn about index funds and mutual funds. Vanguard is probably the most well-respected mutual fund company.

If you want a more hands on approach then you need to start by reading and learning all about the stock market, because it is very difficult investing in individual stocks. Most people do not have the time, knowledge, or patience to invest in individual stocks.

Answer 5

Kudo's to you for a wise question! Stay away from stupid things like video games - such a waste of money. Right now, there's a strong market in real estate (it's a buyer's market), if you've not already bought a home. I'm not good with stocks and bonds, but diversify your 'portfolio' as much as you can (mutual funds). Live BELOW your means and stay away from credit debt as much as possible. Enjoy life, and I wish you a long healthy one (oh yeah, visit Bermuda just once in your life!)

Answer 6

INvest in ETF: ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% - 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read.

http://debts-to-wealth.com/category/Why-Invest-in-Exchange-Traded-Funds.html

Answer 7

Talk with a banker about an IRA as a starter , this way you will have plenty of money to retire with , more than enough ...

Answer 8

Read the Richest Man In Babylon and you should be fine

Answer 9

I think real estate is over.... I don't know why people think their going to get a good deal just because its in foreclosure, maybe the home price is still correcting so how sure are they to know that real estate is still good? umm...

Answer 10

my bank account