I want to invest in the stock market. How much should I save before I start investing? What are some good online do it yourself stock websites? I want to give my future kids $10,000 when they turn 21 to hopefully put a down payment on a house. Should I invest it in a CD? What is the best way to handle the savings for my future children?
2007-11-12 14:53:30 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Any investment that will be longer than five years would be better placed into the stock market than a CD. The stock market has outperformed bank savings instruments consistently over any given 20 year period.
Sharebuilder.com is a good place to look at investing. It's $4 per trade for buys, and since you won't sell for a very long time, the sell order of about $20 per trade seems OK. Charles Schwab is good for the novice investor also.
Index funds are a pretty good bet. Just remember that it's not guaranteed, but there is a very good consistent track record. Don't follow it on a daily basis and you'll be fine.
2007-11-12 15:09:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I would talk with a person who is investing and see what might be suggested as to how one starts. My feeling is the internet is no way to start. TALK FACE TO FACE WITH A PERSON. If you do not understand ask for an explanation. A brokerage house is your best bet. You can also go the CD route . Don't worry about future children.
2007-11-12 15:05:09 · answer #2 · answered by googie 7 · 0⤊ 0⤋
CDs are a good risk free way to start to save with a reasonable return (5-5.5% at local credit unions in my area). Once you have more money, I would invest a good portion in mutual funds. Meet with an adviser face to face and explain your needs and desires to him as well as your abilities. You should not have to pay anything except fees associated with your investments.
If you want your children to have money for school, once they are born you can contribute up to 2,000 a year into an education fund with similar tax benefits of a roth IRA for each child.
2007-11-12 16:18:14 · answer #3 · answered by moonman 6 · 0⤊ 0⤋
cd's are not investing.it is parking your money at the inflation rate..............
5000 is a nice starting amount..pick up the book.''the little book that beat the market.''read it three times................it is not that big a book,
2007-11-12 17:06:01 · answer #4 · answered by richard t 7 · 0⤊ 0⤋
Credit Default Swap.......they are toxic and hazardous to your wealth.
2016-05-22 21:55:54 · answer #5 · answered by joana 3 · 0⤊ 0⤋