FundRobot » Mutual Funds » I want to start investing for my future?

Old   #1 (permalink)
Posts: 2,557
Default i want to start investing for my future

So this idea came from a business class I am currently enrolled in, i am currently 22 and I have money saved up and I have a few thousand I am willing to invest in search of profit for the future. I've been reading online articles and I have a good idea of how it works but what I would like to know is, is there a chance of loosing everything I invest? And how long is the term in which I invest, is there some kind of contract that decides when I can retire my profits? Where would be a good way to start and what would be a reasonable plan, I had in mind starting off with 1,000 and yearly add 1000.

NewTech0 is offline   Reply With Quote
Old   #2 (permalink)
Posts: 2,592
Default i want to start investing for my future

You may want to work with a securities broker in the beginning. They charge a hefty fee, but give good advice while you're learning the ropes. But you may need to up your investment to 2500 or so. Yes, you could lose the money, so don't put any more into an investment than you could lose without suffering otherwise.
SweetHot is offline   Reply With Quote
Old   #3 (permalink)
Posts: 2,502
Default i want to start investing for my future

You can look into Index Funds - they're pretty safe - and the best part is that the fees are extremely low. Most mutual funds are "managed" which means you're paying a lot of money to some manager who's probably not making you anymore money than if there was no manager.

You can go to the Vanguard website and check these things out. Or get something like "Index Funds for Dummies" used off of Amazon and read through that.

If you want to invest in something quick and risky, what's really interesting right now are Pot Stocks - there's a bunch of them having to do with growing and supplying marijuana for both medical and recreational uses. The growth in that sector is going to be HUGE unless the republicans manage to destroy people's rights to have the marijuana. They'll do it if they can.

These might be fun stocks to look into - cruise around the Net and see what you can find. Some of them are quite cheap right now.
Owner101 is offline   Reply With Quote
Old   #4 (permalink)
Posts: 2,555
Default i want to start investing for my future

There is always a chance of losing your investment: the company or government you invest in could go bankrupt. But if you invest in a variety of different types of companies, it is unlikely that you will lose everything.

Most investments, including publicly-traded stocks, can be bought and sold at any time.
An exception is Certificates of Deposit, which are loans you make to a bank that pay out with interest on a set date. Bonds pay out on a set date as well, but can be traded before then.

If you invest within a retirement account, then the tradeoff for not being taxed on your profits is that they cannot be withdrawn until you are old. This is still a good deal because you do need to save money for when you're too old to work, but if your goal right now is to save up for a house or college, you have to keep the money in taxable account.

"long term" investing usually means 10 years or more; for that you should mostly buy stocks. If you need the money sooner, you should choose an investment whose value doesn't jump up and down so much, so that it's worth enough at the time you need to sell it.

1000 per year is a good start. Investing the same amount each time ensures that you buy more shares when they are cheap than when they are expensive. You don't have to be an expert to get good bargains.
But as your salary increases, you'll need to invest more to have enough for retirement.
TodayIBUY is offline   Reply With Quote
Old   #5 (permalink)
Posts: 2,620
Default i want to start investing for my future

Well if you want to be rich you cant think like that but if you want to be ok then you should.

If you mean investing in a 401k or CD best option for you as that is their isnt any big risk on that. However, the big risk is stocks and better rewards. But with stocks the less money you have the higher the risk for reward. Meaning if you want to make 1,000 dollars with 1,000 you need to double it while compared to if you had $100,000 and wanted to make $1,000 all you would need is to buy a $99 stock and sell it for a dollar increase of just 1%.

Awesome90 is offline   Reply With Quote
Old   #6 (permalink)
Posts: 2,526
Default i want to start investing for my future

Best thing that you could do with that grand is put it within a Roth IRA.

Ignore the short term market news. Get into the habit of dollar cost average. The stock market always advance overtime

Take Care
TopGear.12 is offline   Reply With Quote
Old   #7 (permalink)
Posts: 2,584
Default i want to start investing for my future

Both Amy & Ursugardaddy have good advice. The best thing is - you're 22. Great job starting young!

Some tidbits of extra advice for you:
- Invest into a Roth IRA (Index funds as Sum mentioned or other mutual funds)
- Put money into your 401K if that becomes available with your job
- Put money into your savings account for an emergency fund (for REAL emergencies, not Christmas)
- Set up a budget so you can tell your money where to go, not wondering where it went
- Stay out of debt
- Never borrow from your retirement accounts
ForexCash10 is offline   Reply With Quote


Thread Tools