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I want to invest some money...

T

thirtythree

Diamond Member
So I'm 19. I have nearly $4000 in the bank and make about twice what I need to live on at the moment. I'd like to invest say 2 or 3 thousand, and it's okay with me if I can't touch it till I retire. I don't want anything risky. My family suggested a Roth IRA, but I don't know much about it. Or any other investments for that matter. Something I could just do through my bank would be good...

TIA!
 

If you really don't expect to need the money before retirement (schooling? housing? family?), then a Roth IRA might be a good idea. But it doesn't really answer the question of what to invest it in. I'd suggest a low-fee index fund of some sort.
 
Go to your bank and tell them the same thing you just told us. They should have a specialist there for free advice.
 
I've got a Roth IRA that my family's financial planner helped me set up. The nice thing about the Roth IRA is that you can take out your initial investment to put down a down payment on a house if you want to.

I don't really know much about investments so far. I'd maybe chat with a financial planner?
 
Originally posted by: PowerEngineer

If you really don't expect to need the money before retirement (schooling? housing? family?), then a Roth IRA might be a good idea. But it doesn't really answer the question of what to invest it in. I'd suggest a low-fee index fund of some sort.
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See, I didn't even know that. I'm about to graduate from college and hopefully start grad school next fall. I'm only applying to programs that have really good financial assistance, so I should be okay in that regard. I don't think I'd want to buy a house or anything until after that (5+ years), and I don't plan on getting married too soon. I'm not sure about kids. dfsdfsdfsdf
 
congrats man, i salute you. Only if all young people had the intentions to save money. AROTH IRA would be a great idea. I personally LOVE vanguard funds. you should go to www.vanguard.com and see what kind of funds they offer. I started a ROTH IRA when was 16, youngest you could possible be. And ever since I've been contributing the maximum every single year, first it was 3000, then the following years it was 4000 and right now i'm 20 with my portfolio just short of $20000. I suggest you invest aggressively, at least that's what I do. I personally have about 1/2 invested in the vanguard index 500 and 1/2 invested in the small cap index[very risky] But we're still young. let me know if you have any questions

honghong322@gmail.com
xblipblopx <- AIM
xblipblopx@hotmail.com <- msn

or just PM me, good luck!
 
Roth IRA at vanguard.com and get their VFINX S&P 500 index mutual fund. This is about the safest possible long-term investment based on the stock market.
 
Originally posted by: thirtythree
So I'm 19. I have nearly $4000 in the bank and make about twice what I need to live on at the moment. I'd like to invest say 2 or 3 thousand, and it's okay with me if I can't touch it till I retire. I don't want anything risky. My family suggested a Roth IRA, but I don't know much about it. Or any other investments for that matter. Something I could just do through my bank would be good...

TIA!
Click to expand...

IRA account FTW.

invest 2Gs every year from 18-25 and then stop. Because of the average 6-7% interest, you will be a millionaire by retirement.
 
What about for a person in their 30's? I have a decent amount of cash that I could invest in mutual funds or something not too risky. I looked at the Vanguard funds and they seem okay. What I'd like to invest in are the funds like this:

Profunds UltraSector Mobile Telecomm Inv WCPIX 67.87%
ProFunds Ultra Internet Inv INPIX 66.97%
Profunds UltraSector Mobile Telecomm Svc WCPSX 66.07%
ProFunds Ultra Internet Svc INPSX 65.31%
U.S. Global Investors Global Res PSPFX 63.35%
Jacob Internet JAMFX 62.87%
BlackRock Global Resources Instl SGLSX 61.37%
Merrill Lynch Latin America I MALTX 60.95%
BlackRock Global Resources Inv A SSGRX 60.91%
Merrill Lynch Latin America A MDLTX 60.51%


Those are 3 year returns! That's insane.
 
Originally posted by: MustISO
Those are 3 year returns! That's insane.
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In any short term, there will be sectors that grow a lot faster than S&P 500 funds like VFINX. Then more pople pile in just as the funds stop growing or even lose money.

If you bought oil/energy funds a couple of years ago the returns are great, but if you buy now it's probably way too late.

Buying high-risk funds like those only works if you can guess in advance what niche or corner of the market is about to explode, and time your buying and sellling of the funds so that you buy before the growth and get out before it's too late.

Buy $10,000 in Microsoft stock in 1990 and watch it double and redouble. Buy it in 2004 and watch it lurch along doing nothing special.

The advantage of an S&P 500 fund is steady growth over decades with almost zero risk, and with no need to time buying and selling of funds.
 
Originally posted by: alimoalem How much return to ROTH IRAs give? if you had more, i would've said a long term CD
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Roth is a person so not "ROTH" 🙂

Roth IRA is a type of retirement account, it can be set up at a bank to buy a long-term CD (a lousy retirement investment) or it can be set up at a brokerage or mutual fund company to invest in stocks or mutual funds.

Can Vanguard funds be purchased through anyone other than Vanguard?
Click to expand...
Yes, though you'll probably pay a trading fee.
 
Originally posted by: DaveSimmons
Roth IRA at vanguard.com and get their VFINX S&P 500 index mutual fund. This is about the safest possible long-term investment based on the stock market.
Click to expand...
I think I'm going to do this. Okay? lkdjfl3kj24li3
 
Originally posted by: thirtythree
Originally posted by: DaveSimmons
Roth IRA at vanguard.com and get their VFINX S&P 500 index mutual fund. This is about the safest possible long-term investment based on the stock market.
Click to expand...
I think I'm going to do this. Okay? lkdjfl3kj24li3
Click to expand...

I would suggest you spend 1/4th to 1-3 of your money to buy Gold.
 
Originally posted by: Crono
Originally posted by: thirtythree
Originally posted by: DaveSimmons
Roth IRA at vanguard.com and get their VFINX S&P 500 index mutual fund. This is about the safest possible long-term investment based on the stock market.
Click to expand...
I think I'm going to do this. Okay? lkdjfl3kj24li3
Click to expand...

I would suggest you spend 1/4th to 1-3 of your money to buy Gold.
Click to expand...

hahahahaha...

your joking right?
 
Originally posted by: suse920
Originally posted by: Crono
Originally posted by: thirtythree
Originally posted by: DaveSimmons
Roth IRA at vanguard.com and get their VFINX S&P 500 index mutual fund. This is about the safest possible long-term investment based on the stock market.
Click to expand...
I think I'm going to do this. Okay? lkdjfl3kj24li3
Click to expand...

I would suggest you spend 1/4th to 1-3 of your money to buy Gold.
Click to expand...

hahahahaha...

your joking right?
Click to expand...

No, I'm serious. What's wrong with my suggestion?
 
Originally posted by: DaveSimmons
Roth IRA at vanguard.com and get their VFINX S&P 500 index mutual fund. This is about the safest possible long-term investment based on the stock market.
Click to expand...
Is this the "500 Index Fund Inv"? EDIT: Yes it is. What does S&P stand for?
 
Originally posted by: Crono
No, I'm serious. What's wrong with my suggestion?
Click to expand...
The long-term return on gold investment is awful.

The main reason to own gold is if you're sure civilization is about to collapse. But for that a better investment is canned food, a high-caliber hunting rifle, a pistol or two and plenty of ammo.
 
Originally posted by: thirtythree
Originally posted by: DaveSimmons
Roth IRA at vanguard.com and get their VFINX S&P 500 index mutual fund. This is about the safest possible long-term investment based on the stock market.
Click to expand...
Is this the "500 Index Fund Inv"? EDIT: Yes it is. What does S&P stand for?
Click to expand...
Standard & Poors.

An S&P 500 fund is based on an index of 500 large US companies, through the fund you own shares in all 500 companies.

This gives a good return because you're investing in the whole market at once. Some go way up, some go up a little, some go down but you are "diversified" and come out ahead over all. Many of the stocks also pay dividends which increase the value of your fund shares.
 
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