16 year old with a plan is this a good idea?

Question

Hi,

I have a checking account, and a savings account and I want to save up for a $500 CD account for short term because of the CRAPPY rates. Then I want to save up $1000 from my checking account and use that money to open a Money Market account with minimum of $1000. $500 CD will have no monthly payments and the $1000 Money Market too will have no monthly payment.

Is this a good Idea??????????

My parents will NEVER let me invest or place my money on-line and they said im stuck with my local bank. TCF BANk.

I want to play around with my money...I worked hard for my money and it deserves something better you know what I mean...

BTW I don't need the money until college when Im 18, I want to let you all know IM A BIG SAVER, I NEVER SPEND MY MONEY.

Plus, I get paid around $200-300 once every 2 weeks and will go directly to my bank..

Answer 1

First you are already outstanding compare to others teenagers; coz you know the important of managing the money whereas only know spending the money at your age.

CD acc and money market acc is a conservative investment that can be say you would not lose your capital, the only concern is inflation may make your money depreciation.

Most of the successful people they start saving and invest very young like Warrent Buffet. You have a common trait/charisma of those people, congrats!!

My opinion is first invest in yourself, at least you have an idea about investment world, then start young is your advantage.

The most difficult things are actually the emotion control during all tends of market.

Good investing.

Answer 2

yes, it is a good idea. Also, look into Series I bonds ( they are savings bonds issued by the US government that rises with inflation). Best of luck to you.

Answer 3

Wow, what a saver kiddo and kudo to you. America is better of in the future if they have the generation of kids like you.

For the safe bet right now. CD is the good place. ETRADE  will give you 3.3 % for the saving account but your parent to go with you.

the next step you should consider is the ROTH IRA. get educating yourself about ROTH IRA as much as possible. Not to late to consider planning retirement either.

The Next Step is LEARN HOW TO INVEST PROPERLY. couple books you should check it out

Stock Trader's Almanac by Jeff Hirsch

Financial Analysis by Using Technical Analysis by John Murphy

http://www.stockcharts.com

It is really good for your future. Learn as much as you can about investing. Protect your asset in good time as in bad time. You can email me at anytime.Learn how to Fundamental analysis, Technical analysis, Sentimental analysis, and market cycles

I hope in the future,you are doing better than me

Right now at age of 35

my 401k : 81000.00

my Roth IRA : 18500.00

my cash account on hand: 30000.00