I have 2000 USD in mutual Funds. Will add more real soon. Good or bad idea? I will not stop adding funds.1k/mo

Question

I am 17 and I want to earn more money later in lfe. I don't want to be covered in debt. So, I started out with 2k+ USD 5 months ago and opened a mutual fund account here in my country and I am planning to add a minimum of 1k+ USD or more monthly to the mutual funds account starting next year. I sacrifice now so that later in life I will take the fruits of my labor. Besides the trust funds in my country, I also have trust funds in US. I don't buy new mobile phones, PS3, Ipod, etc.... They depreciate a lot anyway. Am I on the right track? I plan to enter real estate later in life by building hotels, etc... and creating some businessess too. Will there be a chance that I can be like Donald Trump or some other great person? I know a Senator in my country who was VERY POOR at a young age but ended up with 950 Million USD in his pocket today... Oh, besides the mutual funds, I have savings accounts too here in my country and abroad. I don't plan to touch any of them soon.

I am a student now and I will keep on adding minimum of 1k/month starting next year and then maybe when I already have work as a Surgeon in the US after 10 years, I will add even more to the funds in my country and abroad. That is my plan. I want to build hotels also..... Hope that all my dreams will come true.

Answer 1

Your approach is perfect man! Since you are young and can assume risk, don't put any money into Bonds.... their return is only 4% - 5% per year. Keep your money in stock mutual funds, mainly index funds for Large Cap, Small Cap, Emerging Markets, Eruope, REIT's, Growth, and S&P 500. Index funds have very small expense ratios!

Then stay the course! Even if the market drops big, keep pouring in the money, because the market in the long run will continue to go up up UP!!

Great job my friend! Good luck!

Answer 2

nicely, you're basically 17. you're making an investment 2000USD so a techniques. the place did you earn the 2000 from? Are you working? How plenty do you be able to save each month? The unfastened existence coverage provided by ability of the mutual fund won't be for somebody such as you. you have no dependants. the corporation will probably deduct some area of your investments in direction of the top classification without your awareness. you opt for a happy, wealthy existence at 40 and a billionaire by ability of 50. you're basically 17 now, you have 33 years left to turn right into a billionaire. artwork tense and save, make investments in the suitable shares and mutual money and you will easily gain your objective.

Answer 3

Your mutual fund idea is a good one. You have good goals and dreams. I would not want to leverage so much money like Trump, though. You should set a very wise limit of how much you will borrow for investments so you can keep your interest costs low so your investments can pay for themselves even in bear markets. You are starting early to capture as much capital gains as possible and watching your expenses to maximize your investments which is very prudent. Also, the fact that you have available cash in savings is good because you don't want to have all your savings accounts in stocks because even though stocks bring great returns, they are also volatile and have transaction fees that make them great long-term investments but a poor source of emergency funds.

Answer 4

Your head is in the right place, after you have a reasonable amount invested start thinking creatively you can open your own business or invest in someone else that has a brilliant idea as a silent partner, that way you can have another avenue of unlimited earning potential.

Answer 5

I think you are on the right track. After you have $10k invested, you should start picking funds from different categories: bonds, European stocks, American stocks, Energy stocks, etc. After you have $60k invested, you can pick some individual stocks through a discount broker.

But I agree with your approach so far.

Answer 6

best move you can make!!!