Since I dont know much about investing yet, Im thinking of putting my money in an index fund or cd. Any advice?
2007-12-05 05:37:08 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
SMART TEEN :-)
It's never too early to start investing.
Do not invest in stocks. Too risky for you.
Better invest in business.
You will get around 20% annual interest. $2,000--> $2,400 in a year. You will not get such high returns on bonds, stocks or CD's.
I run my own business and I have profit margin of over 5% a month.
Some European banks pay 8% to 14% a year (5 years deposits).
Email me at investment4us@hotmail.com for more information. I would advice you something if you are serious about investing.
Best of luck!
2007-12-05 06:42:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The best advice you could get is to go to your local bank with one of your parents and receive advice on all your questions on investments.
I'm not sure what the legal age is in your state to start an investment fund, but up here it's 18. Best bet is to just start a basic savings account at ING or at your local bank and save.
As soon as you turn 18, put percentages of that savings into a Money Market Mutual Fund. A couple of years later start a small RRSP (preferably Balanced Growth).
Plus take advantages of those pamphlets your bank has on investing, stocks, bonds, accounts, etc.
All the best.
2007-12-05 14:12:08 · answer #2 · answered by Austrian Theorist 4 · 0⤊ 0⤋
I would reccommend reading "Rich Dad, Poor Dad" by Robert Kyosaki(sp?). It teaches a lot about money that you won't learn in school.
also: Think Big and Kick *** by Donald Trump and Bill Zanker.
Both of these books are good.
I would recommend investing in something better than CDs. they have a mediocre rate of return overall.
If you want to invest in Mutual Funds early on, try Vanguard.
Also, try real estate. I know in Illinois you are considered old enough to own property.
look around and see what interests you before you decide what to invest in.
2007-12-05 13:47:19 · answer #3 · answered by Darkwolf 5 · 2⤊ 0⤋
Wow! 14! So, young and so smart for your age. Usually people won't start investing until they are in the 20's and maybe even late than that! I would definitely read the book, "Young, Broke and Fabulous" by Suze Orman. She is a very smart lady and the book is VERY easy to understand. It breaks down all kinds of financial areas and will prepare you for your future. I am impressed by your age...keep up the good work!!!
2007-12-05 13:51:29 · answer #4 · answered by PensHockey 2 · 1⤊ 0⤋
An index fund is not a bad choice to start with. The obvious choices are the S&P500 (either SPY, or IVV, or VFINX); or the EAFE index (EFA).
I'd recommend the investing book for beginners called "Learn to Earn" by Peter Lynch.
2007-12-06 23:35:17 · answer #5 · answered by Tom H 4 · 0⤊ 0⤋
Perhaps you should start slow. Invest in a Money Market account or in a CD at your bank. You can talk to the banker for information on how they work and what the criteria are for both.
2007-12-05 13:46:46 · answer #6 · answered by Erin 7 · 0⤊ 1⤋
You might want to look into sharebuilder - I think their website is called sharebuilder.com
My son uses this and is also 14 - you can buy as few as 1 share of stock in a company.
My son buys into companies that he likes and he intends to hold the stock very long term.
Most financial advisers will tell you to diversify - that is spread your money around in various companies and industries - that way if one area does not do well others may.
You may want to look at the Motley Fool website.
2007-12-05 13:48:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
invest in a library card.
read
the millionaire next door
total money make over
rich dad poor dad
think and grow rich - black choice
god want u to be rich
live ur dreams
48 days to work u love
what colour is your parachute
habits of highly effective people.
2007-12-05 13:52:43 · answer #8 · answered by Anonymous · 2⤊ 0⤋