Can you help me with this basic investing question?

Question

Alright here it is. I just turned 19 years old. About 6 months ago i bought a condo with my brother. I have about $2000 dollars in my savings account and enough in my checking to live off of. In the next year or so i will be getting around $10,000 dollars. A week ago i ordered 5 books:

The succesful investor

One up on wall street

Rule #1

How to get started in stocks

Learn to earn

The intelligent investor

I have not recieved them yet but i plan on reading all of them when i get them. I really want to start learning how to invest and make a goal of retiring at the age of 45. Right now i work for my dad. He sells insurance and sells used cars as a side job. I do alot with the car stuff but i am considering getting licensed and selling insurance as my job. I thought about cars and how its such a great way to invest. If i can buy a car for $1000 dollars and sell it for $1500 in a month thats a pretty big return, what stocks can do that? I'll Continue.

Answer 1

I agree almost completely with the 1st responder.  But you certainly should put away some money into a Roth IRA account every month.  It will be tax free income when you retire.  There are not a lot of opportunities for such.  Secondly, it will be providing for your retirement by stashing away some savings that you will not be tempted to touch--hopefully. Thirdly,  it can not hurt to learn about investing along the way.

Answer 2

You  have to do what is right for you. If you want to start your own business selling used cars, then yes you can probably make a higher return than investing.

There are really 3 main ways to get rich:

1. Start a business (sell stuff)

2. Real Estate (buy & sell houses, maybe renovate them to increase value)

3. Investing - Stock market & Forex

It sounds like you have a talent in #1 so that's where you should focus your attention. Of course there are risks associated with it... what happens if you buy a car and nobody wants to buy it from you at a higher price? What happens if you buy a car and then find out it has massive engine/break problems you didn't catch that will cost you thousands to fix?

You are also doing #2 since you bought a condo, assuming you are hoping to turn around and sell it for a profit in a few years.

You never know if you will like investing until you try. Check out sites like www.investopedia.com and www.babypips.com, read a bit and see if you are interested. It isn't for everyone.

It's best to do a little bit of everything and spread the risk out, if you can do it and you have enough money.

The big thing is DO WHAT YOU LOVE! If you love fixing up old cars and selling them, do that. If you love real estate, do that. Personally I love trading stocks and currencies (and the adrenaline rush it gives me) so that's what I do.

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