I am a teen, and I am looking for a good long term investment. The problem.. I only have about $4,000.?

Question

I don't really know anything about investing, so the more specific the better. I want to know what to do with my money now to get rich later

Answer 1

Hi,

I would suggest investing in Forex market with robot do your daily trading 24 hours a day non stop, 365 days a year.

Doubling you capital in 4 months [or earlier], withdraw your capital and let the profit runs by it self. Take some profit, not from your capital, for fun or else.

It called Automatic Forex Trading.

You do not have to learn complicated things like fundamental of technical analysis. Put your money, set the robots program and let the profit runs.

Cheers

Answer 2

Hi Congratulations on starting your investment education.

An Excellent First book is The Bogleheads Guide to Investing by Taylor Larimore Mel Lindauer and Micheal LeBoeuf. It is an easy read and an Excellent add to any investors library.

The Bogleheads or Diehards as they are also called loosely follow the investment wisdom of John Bogle founder of the Vanguard Mutual Fund Company ( mentioned in several other responses)

Vanguard Mutual Funds are known for LOW Fees and many Index Funds. That is why they are so very popular.

If you choose to invest in low cost, Index Funds including Bonds and International Funds you will be successful.

The single best decision you can make is stay away from Higher cost vehicles.

If you invest a higher cost stock fund you have to beat the INDEX by 2-3% per year for the first say 5 years JUST TO BREAK EVEN....

You can find the cost of a Mutual Fund by going to www.Yahoo.com - then go to financials -- put in the Mutual Fund Ticker Symbol like VFINX and then go to profiles and on right down a bit are the costs ....

The Vanguard Target investment mentioned earlier is a Great Choice.

There is a website with the Vanguard Diehards approach discussed in a Q+A format there are also several investment primers there, a very quick way to get some sound info. diehards.org

Good Luck = I wish I had been intelligent enough to start Investing in my teens. -- Gerry

Answer 3

Wow, I am impressed that you are already thinking of this.
A good starting point for investing is a CD. If you can afford it, go for the longest term you can handle so you will get the highest interest rate. Check out a variety of banks before you get your CD as banks are pretty competitive with rates.
Also, invest in 401K once you have a full time job. This is great because the money is taken out of your check before taxes and most companies will match the money you put in. If you have a savings account, try to get the one where you have to have a minimum balance; this will make you save more money and the interest rates are much better.

If you are interested in getting more information read the book Rich Dad, Poor Dad by Robert Kiyosaki. Is is a new way of thinking but since you are young you can start now rather than getting in credit debt that is hard to get out of. Good luck to you!

Answer 4

Vanguard Total Stock Market Index Fund.

Answer 5

You can make alot with 4 grand. If you invest that 4 grand now at 6.5% interest and deposit only 100 dollars a month for 50 years, you will have over $550,000 dollars. Check it out for yourself. The hard part is not touching that money for the 50 years, but if you have the discipline you can be a rich man.

http://www.planningtips.com/cgi-bin/savings.pl

Answer 6

I suggest you buy this:

https://personal.vanguard.com/VGApp/hnw/content/Funds/FundsVanguardFundsTarget2050Summary.jsp

This will give you excellent diversification for a very low fee. Fees eat away at investments over time.

This fund will rebalance as you get closer to retirement and since you are starting out now, you are way ahead of the game. Add to the fund when you can and also contribute to your 401k - the max if you can.

Here's some reading that will help you understand a bit more:

http://www.amexsux.com/cgi-bin/yabb/YaBB.cgi?num=1119185052

Good for you!!! If you do this you will likely be independently wealthy in your 40's.

Answer 7

A teen who has $4000 to invest is a very fortunate individual.I would suggest you find a reliable stock broker and put your money in a Mutual Fund which pays a decent interest rate.Keep adding to that investment, plow back all dividends paid and someday you will be surprised how large that investment has become.

Answer 8

I would recommend Charles Schwab. They are friendly to the unexperienced and ask for advice and review their website.

A general recommendation from me would be to diversify is about three or four mutual funds (no load one source). Get some that are domestic and an emerging markets and a money market fund.

The stock market is not really that strong right now. I wouldn't recommend going for individual stocks until you are way more experienced.

Answer 9

Contact ant broker for Mutual funds in your neighbourhood
Invest in Mutual funds

Get online pin from the mutual fund you are investing and you can manage

add on whatever you can afterwords

Answer 10

Vanguard is a good fund, but do you own research. Mutual funds are the way to go.