16 Y. Old and looking to invest. PLease Recommend!!!!?

Question

Im 16 years old I am looking to invest in stock. I have about 700 dolars that I am ready to risk. I need recommendation on what type of account to put it in.

I want a short term account, since I plan to use the money in 2 years. I want an account that has a nice interest rate, one that is manages FOR me since I don't know that much yet.

I just need to know how and where to invest my money so I can receive as much benefits from it as I possibly can.

I can answer any questions that need to be ansewred, just ask.

Also recommend me a place to learn. I know what are bonds, blue chips, mutual funds, stock split, cd and all that stuff I just don't fully understand how it works.

Answer 1

First of all, you need to be at least 18 years old to open up an account at a brokerage firm.  Therefore, in order to invest, you will probably need to open a joint account with your parents.  I would suggest opening an account at a brokerage firm.  Since you do not have that much money, you probably won't be able to open up accounts at big name brokerage firms like Etrade, which requires $1k minimum deposits.  I currently use Firstrade http://www.firstrade.com/.  They do not have any minimum requirements so you won't run into that problem.  You should take a look at them.

My favorite site to learn about the stock market would definitely be Investopedia http://www.investopedia.com/.  However, there are plenty of great books out there as well.

Answer 2

Try http://www.hyipranks.com/ a lot of investment, some good, some not so good.These are all quick turn over (risky) investments. Put your funds in, get your initial investment back and let the rest roll.  I've been doing good for the last eight years.

Note: Do your research

Answer 3

Charles Schwab has a good website and lots of learning tools.  Trades are $12.95...and they have offices if you want to talk with someone.  I might start with a no-load mutual fund..or a couple stocks that are beaten down now.  But if you cant afford to lose it I would look at 3 or 6 month CDs.

Answer 4

Scottrade is a good place to invest with .Also you can learn some things from their website and go to morningstar and take the online classes and earn points for taking quizzes.

Answer 5

Check investopedia.com, it's free and breaks down the information by key words and general strategies.

CDs and bonds are used to hold worth, and are not investments.  Inflation plus taxes eat up the returns on those things.

Generally you want to start with $2,000 as the buy and sell fees affect your rate of return.  My guess on $700 would be a gain of $157 (not including taxes) with 12% a year.  Real worth gains would probably be $53.30 factoring inflation and taxes.  Since you are 16, you will need some adult to co-sign for you.

If you really want to do it right, save up your money until you are 18.  Put $2000 plus fees into a Roth every year and retire at 70.  At 12% a year for 52 years you will have put in about $106,000 (including $2,000 in fees) and have $7.47 million for a real return of about $1.56 million (in today's dollars) minus state (no federal) taxes.  As you get older that $2,000 will seem like a smaller and smaller amount.  If you put in $4,000 a year in a Roth IRA for 52 years at 12% compound gaines that's almost $14.95 million gross while putting in $212,000 (including $2,000 in fees).  Your retirement would be easily set.  You should be spending your time gathering money and how the system works.