I have a little more than five hundred to get me started, and am really doing this for the long term goals. I’m not sure if buying bonds would be the best thing, and if so, what type of bonds should I buy. I have really been wanting to do this, just need some correct advice from all angles to give me something to think about. I really have no inside knowledge of the stock market other than what I see on CNN. Please Help!!!!!
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What is the best way for a 22 year old to get started investing with little money?
sixoneurdun 11:59 am on December 8, 2009 Permalink
you should open an IRA account if you don’t already have one.
does your company offer a 401K or any stock purchases.
having money deducted from your check often saves on your taxes and makes it easier to build a nest egg.
don’t put all your money in one type of investment. it’s safer.
engineer50 11:59 am on December 8, 2009 Permalink
Read "Investing For Dummies" first.
JSAL21 11:59 am on December 8, 2009 Permalink
500 bucks should start in a money market fund. you can return 3.5-6%. keep putting money in until you get at least 5k. you can invest these funds then into a mutual fund, ETF or bonds. You said you were a long term investor so you are going to want to stay conservative. iShares offer many conservative ETF bonds, very interesting and all for reasonable expense ratio (fee). Check it out.
smartyness 11:59 am on December 8, 2009 Permalink
Stay awayfrom the stock market! Find some friends that also have a few bucks saved up, pool it together and buy a house. You should only need a few thousand for a down payment. Rent the house out until it is worth more than you paid, then sell it for a profit.
Sugga 11:59 am on December 8, 2009 Permalink
you should start w/an IRA or CD. They usually have the best interest rates starting at $500.
robe 11:59 am on December 8, 2009 Permalink
Save 256 dollars a month in a mutual fund and you’ll have one million dollars at age 62. Ignore people who advise staying away from stocks. If you dollar-cost-average by contributing consistently every month (just have it as a payroll deduction) you’ll be so far ahead of the rest of your generation by the time you’re halfway there that it won’t even be close. Most don’t save – so most have no relevant advice. My daughter has saved over 25,000 at age 25 and is on track to be a millionaire in her 50s. After you start your savings program above, THEN worry about securing a home/mortgage, but never before. Suzie Orman is a good show to watch on Saturday night for beginners. 9PM and midnight eastern. I’m excited for you planning this early. You will do well! You must choose, but I would especially advise, because of your age, going with CGM Focus Fund. CGMFX
evermore 11:59 am on December 8, 2009 Permalink
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