How and where to begin investing?

Question

My Fiancé and I are in our early 20's and we would like to begin putting together a portfolio and gathering assets. Right now, he is putting around 70 dollars a week in to a 401K from his job and I will be doing the same in about a month, as soon as my 401K becomes available.

We also have 50 dollars a week going in to a bank saving account with about 2% interest, not impressive I know. Most of this money is just being held for our tuition money in the fall, but I would like to eventually move at least some of this money to a more profitable holding ground. I know the 401K's are a good place to start, I would like something a little more liquid.

I need something with a small opening balance requirement, 1-2 thousand dollar range as well.

Your time and any advice is greatly appreciated.

Answer 1

Short term investment

CD the compound interest is good get one at your local bank

Next A mutal Fund you are Young so you have 65 years. Place 20 dollars a month into a mutal fund invest in only gold and things that won't loose value. In 50 years you will have over a million dollars. I just wish my parents knew this whey they were 20.

Other sound investments a house they always make Bank when you sell them.

Best place to invest in a mutal fund is up to you. I'm sure you can find a good place. Pick a nice good company.

Good luck future millionaires.

Answer 2

I am an amateur investor so my advice might not be the best (but then again, it didn't cost you much, did it?); however, I am in a similar situation as yourself.  I began reading investment articles and books a couple of months ago.  I have learned a couple of things that seem to be particularly important, primarily diversification.  I learned a bit about how bonds and stocks work and what to look for.  I also have learned a bit about mutual funds.  

As far as liquid funds go, I would suggest looking at Money Market Accounts.  I currently have a pretty good account at E-Trade.  There is no minimum balance and it is paying 3.15% APY.  I also have a Money Market Sweep Fund with my stock broker, Zecco.  This also has no minimum balance requirement.  Both are easy to use.

Here are links to both of those companies web sites

E-Trade:https://us.etrade.com/e/t/banking/saving...

Zecco:http://friends.zecco.com/r/2c6fc54e84001...

My advice is this.  Read about the investments that you wish to work with.  Once you have read a little bit, get a little experience by doing some investing.  Keep using your 401k.  Tax free is helpful and your employer probably matches part of your contribution.  I currently have 3 types of investments outside of my 401k.  1) US Savings bonds.  They don't pay very well but inflation and taxes seem to be the only way they loose value.  2) Stocks. I really dislike the fees that most brokers charge.  I don't have a lot of $$$ to invest so $4-$15 a trade doesn't help much.  I found a broker (Zecco) that offers 10 free trades a month.  That way I can by 2 shares of Delta Airline stock (currently worth a whopping $5.42/ share) without having a 50% loss just because of the trading fee.  I do have to have $2500 in the account to get the free trades.  I leave that in a money market fund so it gets a little bit better interest.  Here is a link to that company http://friends.zecco.com/r/2c6fc54e84001...

3) Peer to peer loans.  You might think that these are risky.  Well, all investments have some risk.  I currently have 4 loans for $50 each out to individuals.  I have not once received a late payment.  My average return is about 14%.  I establish these loans through Prosper.  Here is a link to that website.  http://www.prosper.com/join/lawndude16

Feel free to e-mail me with questions.  Good luck.

Answer 3

Haha, hyhdnkmn has never read an economics textbook in his life. Keep waiting around while China increases their energy consumption. Oil goes to 150 no matter what congress does. This is a global economy. I would recommend practicing on a site like theupdown.com or the motleyfool caps if you have an intrest in stocks. Energy is a sound play for the next 5 to 7 years as well as some fertlizer plays for the next 3 to 5 years. If you like to read I would  matthew simmons, thomas friedman, for where energy will go in the coming future.. You can make good money with fairly safe stocks depending on your risk. all the food riots in the world, governments will answer. Potash (fertilizer)is a great play now........

Answer 4

Go to any Edward Jones' and talk to a rep. they will give you top notch info.

Answer 5

http://money-moneyloan.blogspot.com

Answer 6

talk to your local bank

Answer 7

I´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.

If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you become much richer than you are today.

My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:

We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.

Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.

Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.

For me "All stocks are equally worthless”

I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.

I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.

Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin… That´s why so many new traders (and investors) lose money.

Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.

The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.

But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their

online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.

It's easy to see why trading the open is the market's prime time for profiting from other online traders.

The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.

Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.

There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points

in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.

I trade only when I have an edge and that means "only the first hour the market is open".

If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.

I can carry on with the advises about how to make money trading, but if you ask me:

"What is the best thing you can do for me?

I will say:

Give yourself a BIG favor and go to this "Top Secret" site and learn how to get the BEST stocks that will make the largest and fastest day trading profits you´ve ever seen, all by yourself...

www.onehourtrading.com

After you review this site you won´t need system, strategy, book, software or mentor to tell you what to do,

you will be able to profit HUGE every day.

Good luck and good trading,

John Fontaine

Answer 8

You are doing the right thing by starting off saving and putting it in the bank.  Now you need to go to your public library and check out some books on investing and personal finance.  If you have any debt besides a mortgage read Dave Ramsey's The Total Money Makeover.  Other good books are Personal Finance for Dummies and Investing for Dummies.  Other good books are by Suze Orman and Jane Bryant Quinn.  Personally I like Jim Cramer's books, too.  Stay Mad for Life is his new one and worth a read.

At this point you need to educate yourself and continue to save money.  Even if you decide to go with Edward Jones or another professional you need to know what they are talking about.  Don't just blindly trust your money with anyone.  If you can save money in the current eceonomic climate we are in you have a very good future ahead of you - congrats and good luck!

Answer 9

seriously u should go to your local edward jones investments firm. They will really help you a great deal.  I started going to one when i left one job for another and i put my 401k  into their trust. They have done wonders for me and i really trust them.  I have made a few thousand in last 2 years not a lot but its not really at too much of a risk either.