I’m 17 years old, about to turn 18 soon and I have a lot of interest in investing. I’m not really sure which way to go though. I have two bank accounts. I have a share account with my local credit union, which has roughly 00 in it, and I have a checking account with over 0 in it. Would it be better if I was to change my share account into a market account? The share account has a 1.73%/1.75% APY. The market on other hand, has a 2.00%/2.02% APY. It looks like a simple answer, but while researching markets, I read that they are not secured, and their APY can change depending on the . Would it be worth the risk, even though it’s minimal, to go with a market?

At my local credit union, I can also sign up for a program they have that allows me to invest my into . But, I’m not too sure about investing in . What are the positives and negatives in ?

As of right now I am looking for safe, and secure investment. What are some investment choices that are low risk? I’m not exactly looking to become rich off a couple . I’m not stupid, I know that it takes time to turn a big profit, that’s why I am looking for a safe, and secure investment so I can build up more .

In the future, I plan on getting more into investing in the , and hopefully maybe investing in real estate. I have been looking into a lot of different things, but one thing I can’t really figure out, is it better to use a online broker (Scottrade, E*, etc), or someone I can actually meet with? And if I do decide to meet with a broker, what company is better to use? I know there is Edward Jones , but I’m not sure how good they are, and if there is a better company to use..?

Any other advice, or linking me with another website would be very helpful. Thanks in advance.

 

  • superdadbrad 3:01 pm on January 25, 2010

    Congratulations on starting at such a young age. When it comes to investing, time is your biggest ally.

    First, if the money market account allows to write checks, use a debit/atm card to access the funds whenever you want without limitations, put all your money into that. The risk associated with money market accounts is extremely minimal. For all intents and purposes no different than a savings account.

    For your long term investment needs, a mutual fund is considered very safe. Mutual funds are a bundle of many stocks that you invest in together. This results in diversification of your investment, reducing the risk significantly. Using index funds are a great way to keep the administrative fees low and be highly diversified at the same time.

    Another investment you may want to consider are Exchange Traded Funds (ETFs). ETFs are essentially mutual funds traded on the stock exchange like equity stocks.

    There are pros and cons to each. With mutual funds you can set up recurring deposits at minimal or no commission fees. With ETFs you’ll incur higher commission fees (but lower administrative fees).

    information regarding mutual funds:
    http://www.ehow.com/how_5483394_start-investing-mutual-funds-online.html

    Exchange Traded Funds:
    http://www.ehow.com/how_5684160_invest-using-exchange-traded-funds.html

    Information on Index Funds:
    http://www.ehow.com/how_5688174_make-money-index-funds.html

    In the meantime, while you’re watching your initial investment grow, try your hand at virtual stock trading. This way you can get a feel for the market and buy/sell individual stocks with no risk.

    virtual/mock trading information:
    http://www.ehow.com/how_5609336_mock-trade-stocks-online.html

  • tonypoe 3:01 pm on January 25, 2010

    Take a look at this:

    How to Choose Investment Opportunities

    http://www.ehow.com/how_5511704_choose-investment-opportunities.html

  • R. 3:01 pm on January 25, 2010

    Thats some good planning you have going on there, but the best thing before getting into stocks make sure you know exactly what your doing. A lot of people have lost money going in blind folded in that market. I personally would go for investment clubs as Professional Fund Managers monetize your funds.

    I personally like and signed up with Global Forex Fund Managers Investment Club(www.Globalforexfm.com), they are averaging over 20% return on yearly base. Now for somebody who wants to get it into stocks it would be best to let your money sit somewhere where its being duplicated that way when your ready you can take a portion out and put in the stock market.
    Its a win win situation.

    here is there website btw. http://www.Globalforexfm.com
    I suggest you read there Brochure.

  • Jim L 3:01 pm on January 25, 2010

    You are talking about the difference between $35 per year and $40 per year in interest. Chances are both are safe, but if you are really worried stick with the 100% safe choice.

    Regarding brokers, full service brokers (the kind you meet with) are in my opinion a waste of money. Commissions are much higher, plus their main goal in life is to sell you on stocks their firm is pushing by giving you "recommendations." In todays’ world, you have so much information at your fingertips, you can make your own decisions and pay a small fraction of the commission you’d pay by using Scottrade or other online brokers. Scottrade has offices in many cities and they actually do have brokers you can talk to in their offices if you have questions. It’s the best of both worlds.

    Good luck in your investing.

  • Danny 3:01 pm on January 25, 2010

    Smart business minded young people like you need to be associated with innovative business investments. I would gladly give you these sources because you deserve them. Best wishes and investment.

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