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If you only had 100 bucks a week to throw into a do-not-touch-account, what is the best thing to do with it?

2007-12-27 16:05:34 · 4 answers · asked by Anonymous in Business & Finance Personal Finance

4 answers

If you have no savings at all, start with a simple savings account; after you have a certain amount saved, open up a CD, preferably one each month. Buy U.S. Savings bonds, at least one each year. Pick a stock, McDonald's, Hershey, Texaco, ExonMobil, etc., and start buying until you own at least 100 shares (all of these stocks can be boughten directly from the company; you can have the money withheld from your bank account or you can send the money to the company). Then purchase a mutual fund, one that matches your lifestyle and personality style (for instance, how risk-adverse you are), keep contributing to it. If your employer (?) has a 401k or similar plan, contribute to the max each and every year. Don't forget your IRA. For most people, the "regular" is best, so you can deduct from your income taxes (but check with your tax advisor and/or the IRS for best options).
$100 a week is a lot; most people, if they could put their Social Security contributions into a savings account and leave it their until they retire could have more than $1,000,000!
Old rule: "Don't put all your eggs in one basket".
New rule: Diversify, diversify, diversify.
Of course, they mean the same thing.

2007-12-27 16:26:38 · answer #1 · answered by Nothingusefullearnedinschool 7 · 0 0

Yes. $100 per week is a great amount. Many financial planners suggest putting 20% to 25% of your gross income toward retirement. If you make $500 per week, $100 is great.

Best thing to do is place it in a diversified no-load mutual fund from companies like Fidelity, Vangard, or TD Waterhouse.

2007-12-27 16:11:25 · answer #2 · answered by Anonymous · 0 0

I would call Fidelity Investments ASAP or start a 401K plan with my employer immediately!

Fidelity has some great mutual funds out there that work based on your age and/or expected retirement date. They've made investing so simple that everyone should do this!

You might also try CharlesSchwab.com and Vanguard.com (competitors to Fidelity Investments.)

You'll also want to buy a house as soon as you can, but should be able to invest this money first and use it to buy a house later.

2007-12-27 16:16:02 · answer #3 · answered by MovetoLatinAmerica 3 · 0 0

Start a stock account, and invest in ETF stocks that have a daily average volume of over a few hundred thousand!

Learn how to minimally manage the account.. and you'll do great.

2007-12-27 16:16:54 · answer #4 · answered by Joe K 3 · 0 0

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