Suggestions for good, low-risk investments?

Question

I am a first time investor. I'm somewhat anxious about investing because I don't want to lose the money I've worked so hard and long to save. I know there will be a risk of losing some, but I don't want to go from living comfortably to being broke. I bank with Bank of America and would like to keep my money in one place. Therefore, I'm thinking about opening a Roth IRA thru B of Am. However, I am willing to do otherwise for a better outcome. Because I am so anxious, I want to start with a small fraction of my savings, about $10 thousand, just to see how investing works. After understanding better, I plan to invest more of my savings. Any suggestions for good investments???

Answer 1

A Roth IRA is a good idea IF you have already maxed out your 401 K. You don't save on taxes now, but when you start withdrawing at retirement you won't pay any taxes on it.

You can invest in a Roth exactly the same way you can invest out of a Roth. I as assuming you are on the young side? If so, go with stocks. If older, go with more traditional things like CDs even though they are paying badly now. You REALLY need to talk to someone in the investment division of your bank. You need to pick the types of investment you feel best about and most importantly, your goals. The younger you are, the more aggressive your investments can be. Look for growth portfolios. AND you MUST read some books on the basics of investing. Then make your appointment with the investment people. KNOW your risk tolerance. You have to be able to sleep at night. GOOD LUCK

Answer 2

First relax, sometimes it will grow sometimes it won't.  The key is to have your long term growth exceed inflation.  I use and recommend the Motley Fool group at fool.com.  They are really helpful.  You should consider a mutual fund.  They are very sound and while the oscilate they generally go up!  Fool's champion fund series has some good recommendations but look at T Rowe Price, Fidelity and Vanguard.  Nice job on the nest egg!

Answer 3

A group highly professional traders have been offering our services in the field of management of financial actives in international currency market Forex.   Profitableness from 7%-11% per one month.

HERE ARE SOME LIVE ACCOUNT STATMENT

http://fxcapital.info/

[e-mail]

Answer 4

I just started to. I use USAA which has the best rates for everything but I know many can't use it because it's military. Anyways I talked to a USAA consultant who isn't paid on commission and strictly there to help me. He told me it depends on what I want to do in the future is how I should start investing. Being 23 I want a house in the next year or so and so even though a Roth IRA is a good idea I may not want to put too much money into it because there is penalties for early withdrawal. Anyways I have learned from books and other friends it is much better to go for high risk mutual funds because the market will only get better from here and if I do lose money I'm young and can make it back, plus I have my parents. Also Cretificate of Deposits have crappy interest right now since the market expectation is so low so don't even go for those. If you plan on just saving then yes start a Roth IRA and put as much money as you can....know that you won't touch it till your like 57 tho. If your young go for high risk investments because they will reap a lot more money. Hope this helps.

Answer 5

I feel sorry for you.

You can't make do SURFING yahoo Q&A.

The first hacker will relieve your...account like knife in butter...

Answer 6

At your age, don't worry about risk so much.  You have to keep reminding yourself "long term, long term".  There will be short term ups and downs in the market, but in the long term it's always been up.

Having said that, don't throw all your money at the first telemarketer that tells you about the "next big thing!" ;)

I'd go for the cheap index funds from Vanguard or Fidelity.  70%-80% stocks, most of the rest in a bond fund, with maybe a little left to allocate to international funds.

And don't watch over it on a daily basis or you'll just get ulcers. :)