want a place to start learning the basics of and for college ?? How & where do i start?? Are 529’s better or the MET’s better??? Please help??

 

  • Joe 11:10 pm on October 11, 2009

    For retirement, you should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

    If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea.

    I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion

    Buying a house instead of renting will save you a lot of money in the long run. You don’t have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don’t know how to handle deadbeat renters, you can have trouble.

    If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

    Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

    Sources:

    http://www.vanguard.com/VGApp/hnw/planningeducation
    http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/2007/vitindex.html
    http://www.fool.com/school.htm
    http://sec.gov/investor/pubs/assetallocation.htm
    https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education

    If you are saving for college expenses, you should take advantage of federal tax breaks aimed at families saving and paying for college. These include the following:

    Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs.

    Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. May also be withdrawn tax-free for primary and secondary school expenses.

    You can read about these at
    http://www.savingforcollege.com/

  • keplin124 11:10 pm on October 11, 2009

    U should look it up at your local library or bookstore

  • charlotte q 11:10 pm on October 11, 2009

    I BOUGHT SUZE ORMANS BOOK "THE NINE STEPS TO WEALTH"
    ALL OF HER BOOKS ARE ON AMAZON.

    AMAZING STUFF!

    I AM SITTING BY THE BEACH IN MALIBU AND EVERYDAY
    I WATCH MY MONEY EARN MORE MONEY FOR ME.

    BUY THE BOOK AND DO EVERYTHING SHE SUGGESTS FOR
    COMMON SENSE INVESTING!!! SIMPLE AND EASY TO UNDERSTAND.

  • Rob D 11:10 pm on October 11, 2009

    One rule that I generally never break is to tout one particular financial instrument as being good for everyone. The exception is college planning. There is no question; go with the 529. Your money grows tax deferred and is withdrawn tax free as long as it is used for education. Most offer tailored portfolios that mirror your investment style and risk tolerance; and even offer age-based portfolios that automatically allocate more conservatively as the child gets older and closer to needing the funds.

    You can contribute up to $12,000 per year, or a lump sum of up to $60,000 once for the first five years.

  • Frank Castle 11:10 pm on October 11, 2009

    Open a brokerage account at Zecco.

    I will help you for FREE.

  • Aspect Investments 8:56 am on October 12, 2009

    You could do worse than visiting http://www.fool.com

    That site should tell you all you need to know about investing for your future.

  • Aspect Investments 8:57 am on October 12, 2009

    You could do worse than visiting http://www.fool.com

    That site should tell you all you need to know about investing for your future.

  • Aspect Investments 8:57 am on October 12, 2009

    You could do worse than visiting fool.com

    That site should tell you all you need to know about investing for your future.

  • Aspect Investments 8:58 am on October 12, 2009

    Sorry for the multiple posts, but your software told me that there was an error and to try again. Please remove the duplicate posts.