New Investor Needs Help

[stumpy041486]

Hey

I am currently a student, but I have some money saved. I would like to make an investment, but I am not sure what kind? I am thinking somewhere around $1000 to invest. This will be my first investment (first of many I hope). I am open to any suggestions. This is money that I don't necessarily have to have immediate access to either. I have thought about doing lots of things, but I am not sure what is the best. Everything from buying a valuable coin and holding it, to mutual funds, and stock market.

Thanks for any suggestions

[traderoftreasures]

hopefully until you figure it out, you at least have it in a interest bearing savings account

[Produce Guy]

Land,go out and buy some land.

[Roadquest]

Land,go out and buy some land.

Done the right way, This could be the best investment to make.

Roadquest

[treasurekidd]

I agree. Don't even think about investing in stocks, mutual funds or bonds until you own some real estate - like a home. Real Estate prices could not be better than they are right now for someone looking to buy a home, and with mortgage rates as low as they are now, it's a no brainer.

Put that $1,000 into an interest bearing savings account (look into higher yield online accounts like FNBO or ING Direct. While not great rates, they'll be 10 times better than your local bank), add as much as you can to it whenever you can, and start looking at homes. That's the best investment you'll ever make.

[lastleg]

Stumpy:

Take it from someone who started with a little over what you have now.
You have a huge advantage over guys who didn't save a dime until they
were forty. One thousand won't buy you a house or land. If you put that
money in an interest bearing account in this market you will never see it
appreciate to do you any good.
However $1000 in a Roth IRA managed by a mutual fund company such
as Vanguard will grow like a weed if you keep adding to it yearly.
I know this because I tried various mutual funds with mediocre results.
I read constantly for years about investing and picked Vanguard for my IRA
holdings. I wish I had done that in 1980 but I picked a former Wall Street
firm which kept switching my modest account around the horn to garner
sales charges. With Vanguard you pick from maybe 200 or more funds
and never pay sales charges. The expenses are the lowest of any large firm.
If you don't want an IRA you can buy the same funds and pay capital
gains taxes. Safety is the key nowdays and the V Group has money market
funds for absolute safety. The bond funds will earn you around 7% on a
yearly basis. Stock funds have taken a whipping and are now rising. A
young man with many years to work should be in stocks to get the high
returns you will later need to buy that real estate.
Do your own homework. Read the investment magazines to see if what
I say is on the level.

Best wishes,
lastleg

[traderoftreasures]

i wish someone would had taught me to invest. i am so broke if they rented canoes for a nickel, all i could do is run down the bank saying ain't that cheap, ain't that cheap.

[Cappy Z.]

Identifying your investment 'goal' and attaching a flexible 'timeline; is a good start. Most younger people (with brains) like the sound of 'investing' money. They also as we all know like to spend it.

So, two things, short term or long term investing?

Long term, buy real estate. Short term do some research in the comodities markets. The price of food staples wheat, corn, bacon bits (lol) will skyrocket in the next few years. China will be purchasing billions more of our food commodities.

Th stock market is a gamblers den, however. And yet, people who monitor their assets do make money.

HH

[DashChemical]

Stumpy:

Take it from someone who started with a little over what you have now.
You have a huge advantage over guys who didn't save a dime until they
were forty. One thousand won't buy you a house or land. If you put that
money in an interest bearing account in this market you will never see it
appreciate to do you any good.
However $1000 in a Roth IRA managed by a mutual fund company such
as Vanguard will grow like a weed if you keep adding to it yearly.
I know this because I tried various mutual funds with mediocre results.
I read constantly for years about investing and picked Vanguard for my IRA
holdings. I wish I had done that in 1980 but I picked a former Wall Street
firm which kept switching my modest account around the horn to garner
sales charges. With Vanguard you pick from maybe 200 or more funds
and never pay sales charges. The expenses are the lowest of any large firm.
If you don't want an IRA you can buy the same funds and pay capital
gains taxes. Safety is the key nowdays and the V Group has money market
funds for absolute safety. The bond funds will earn you around 7% on a
yearly basis. Stock funds have taken a whipping and are now rising. A
young man with many years to work should be in stocks to get the high
returns you will later need to buy that real estate.
Do your own homework. Read the investment magazines to see if what
I say is on the level.

Best wishes,
lastleg

Your like a Vanguard advertisement. How do you pick from the 200 different funds. I can tell you they are getting paid somehow even if your not paying an up front sales charge. You always get what you pay for.

[lastleg]

Dash:

As I was trying to tell Stumpy if you want a long term investment that
will reward you when you will need it most, after retirement, I know the
mutual fund way works. Even with the latest crash when equities gave
up half their value the market has rebounded nearly 40%.

Stock investors in mutual funds got blindsided by an unregulated den
of wolves. Actually I would prefer the company of wolves to the Wall
Street crowd. But don't blame the honest brokers of mutual funds that
provide consistent gains in a fair marketplace.

The debacle that caused so many to lose faith in the stock market will
remedy itself when Congress chains up the pitt bulls.

lastleg

[lastleg]

Sorry, Dash I didn't get to your question about how to pick from a vast
array of funds. Fund companies provide total returns for every year that
fund has been offered. If you prefer to pay a load plus much higher ex-
pense ratios you better check to see if the performance justifies a sizeable
expense. It really adds up over time.

lastleg