I'm only 18 years old. Is this the best way to INVEST my money?

Question

I have $5,500 saved up and i have it in a bank account taht pays 6.5% interest p.a, paid monthly, compounded.

If you wanna see it, this is the link http://www.dragondirect.com.au/rates.asp?orc=home

Is this the best option do you think? OR should i do shares or something else? I'm not very good with this kinda stuff, hope u can give me suggestions!

Answer 1

I wasn't planning on answering questions here, but these other goofballs don't seem to have very good suggestions. Before you look at investing, realize that you could lose the money you have saved up.
The rule of thumb is to keep 3 month's worth of expenses saved up in a safe account like you are using now. This way, if any emergencies occur, such as the loss of a job or your car breaks down, you don't need to charge it to a credit card.
Count anything you cannot do without in your 3 month's of expenses. If you lose your job, you'll need to find another and the internet becomes necessity in that search, so make sure you can cover those payments. Include food, car payments, rent or mortgage payments, and gas at least.
Now you see why using this money for a down payment is a silly idea. If you lose your job or your house needs emergency work, you need to run out and get a loan before you can pay your bills. If owning a house is a goal for you, save for it, but remember to keep emergency money on hand.
Right now the housing market is in a corrective trend. Many places have been gaining 30% yearly for several years. Historically, housing has only made 4-5% yearly gains, so years of losses are due to return to historical averages. If you buy a house now, you are betting against historical housing gains.

Answer 2

Hey there! Talk to a financial coach, if that all you have saved up so far, that should go into a emergency fund (example - Legg Mason Partners money market account) to make sure if something happens you have some money to take care of it. Then assuming you have a job and are not going to college look to invest $416.67 a month in a Roth IRA and $250 a month into your money market account for as long as you can. Seven year until your 25 your money will grow to $59,916.78 @ 10% in your Roth and $41,533.15 @ 5% in your money market account. Until your start assuming responsiblites such as getting married, having children, buying a home, etc. and talk to your financial coach every 3 months to make sure he is on top of things, even if only for a few minutes, and adjust your investment accordingly. That will provide you the option of retiring at 60 as a multi-millionaire.

Answer 3

No, this is not the best option.
There are better ways to get guaranteed high returns.
Check my profile and email me for a free advice if you really want to earn money.

I don't like stocks. I have invested in small business. Now I am earning 2% income monthly (24% annually). I'm sure I'll double my money in 3-4 years.

Answer 4

NO
Since the stock market is not going so well, overseas investments would be the best choice.

Alternatively try to invest in someones business. You may receive up to 20% guaranteed interest a year. You will not get such high returns on stocks, mutual funds, bonds or CD's.
If you invest $5,000 at 20% annual interest rate, you will get back $5,500 in 6 months. I run my own business and my net profit is over 5% a month.

Some of the European banks are offering 7% to 14% annual interest rate.

Email me at investment4us {at} hotmail.com and I'll give you a valuable advice if you are serious about investing. Please don't forget to mention your question and nickname at Y.A.

Beware of Nigerian scammers (419 fraud).
Best of luck!
Smart Investor

Answer 5

Get a Roth IRA. Invest a couple thousand per year and when you retire you will be a millionaire, or very close to it. I wouldn't buy a property at your age. I'm assuming you have not yet graduated from college and do not have the income to pay a mortgage everymonth. True, you dont have to pay a mortgage if you have renters that pay it, but a lot of time renters don't may rent and you have to pay the mortgage anyway.

Answer 6

70% of all millionares are said to have made their money in realestate. From my own experience investing in acreage or vacant property is the best return on your investment. For example: I invested $900.00 on a land contract. The payment was $50.00 a month. I owned it for 13months and sold it for $13,500. The purchase price $4500.00. I far surrpassed 6.5% and had the leverage of an asset as well.

Answer 7

Invest in ETF: ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% - 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read.


http://debts-to-wealth.com/category/Why-Invest-in-Exchange-Traded-Funds.html

Answer 8

thats a good idea. once you have about 10k, and when you are working full-time, and done highschool, put a down payment on a house. read a bit about real-estate. If you want to take a bit of risk until you have the 10k and want to invest in the stockmarket, dont buy individual companies. invest in the S&P 500 (theyre called SPDR's, or spiders). you can ask a broker and he'll explain.

real estate is the best way though. i have a friend who put about 10k down on a pre-construction deal and the place appreciated about 40k in 2 years. building your credit rating is important. verify your credit rating with Equifax.

Answer 9

Take a $1000 and invest with Global Real Estate. You can make like $1750 off of your $1000 in a month. Check them out at ncinvesting.org or contact one of their investment specialist.

Answer 10

Look i don't need to see that liink to give ya advice so hear me: How about leaving this money where it is it's better ther you might need it for collage or for some crisis who knows fate is a mystary to evry one & if somthing happened it'll be good to have some fee to face it unless you're a welthy guy the go ahead & spend them as you wish alright?!