2007-10-23 09:44:56 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
If your company has a 401k plan, especially with the employer matching all or part of what you put in, then (assuming that you have that kind of cushion so that you won't miss it), max out your participation--taking all that free extra money your employer wants to shovel into it.
A self-directed IRA at most brokerages (Scottrade.com is easy and convenient), then invest in something you feel confident in as you are able. May I suggest you look up some of these exchange traded funds (ETFs): DIA, SPY, NY, DVY, IOO, and PXN. As you get more experienced and confident you can branch out, or stay with ETFs for relative safety. I've made some nice dollars buying ETFs for companies in Japan, Malaysia, and Sweden at times in the past. When you start to notice that business is rising in, say, Brazil or Spain, or even an industry, there are usually ETFs that cover those areas and buy the best players available. It is a nice, safe approach that will tend to beat money in the bank for long term earnings. But over the long term it will fall at times, don't sweat it, the fund managers kick out the unqualified companies and add better qualified companies for you, so things average out. You'll do fine.
Another hint is look for companies that have dividend reinvestment programs. Just as compound interest helps your bank account grow, so do dividends that are reinvested for you. Not every company pays dividends, and not everyone who does will have a DRIP, but of those who do, there are some worth consideration. Again, this isn't trading, it is long term, it is investing. It is like planting a tree and waiting years for it to produce steady fruit for you. Patience is required.
2007-10-23 10:03:56 · answer #1 · answered by Rabbit 7 · 0⤊ 0⤋
A Roth IRA would be ideal. Start off with as large an initial investment as possible, then fully fund them every year (to the legal limit), especially while you are young.
Two solid companies to look at: American Funds; Dodge and Cox.
2007-10-23 16:57:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I assume you're an NBA rookie or Football Player or some other personality with a high paying position, correct? Remember that those jobs don't last forever and you may/might be making the big $$$ now, but you can just as easily loose them or that ability to make the big $$$. GO TO SCHOOL...INVEST IN YOURSELF. EDUCATION WILL ALWAYS HAVE VALUE! PEACE!
2007-10-23 17:13:31 · answer #3 · answered by thebigm57 7 · 1⤊ 0⤋
Start a Roth IRA.
A great company to use is American Funds.
You will need an advisor to help you. They only offer their investments through an advisor.
2007-10-23 17:59:01 · answer #4 · answered by Richard Jackel 3 · 0⤊ 0⤋
Best plan for someone as young as you is a roth ira. If your company has a 401K that is also equally as good if not better depending on if they do any matching to your plan.
2007-10-23 16:52:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋
use a self directed ira; it can invest in anything and not subject to the all the rules of other iras.
2007-10-23 17:29:16 · answer #6 · answered by Daniel P 6 · 0⤊ 0⤋
if you can put 10,000 in IRA by age of 20 and just let it grow you will get close to one million by the time you can get your money.
compound interest is the key, so start early.
2007-10-23 16:49:12 · answer #7 · answered by Anonymous · 0⤊ 0⤋