What should I invest in at the age of 20?

Question

I recently signed up for the military. I'll be receiving a bonus of $4000. I really don't want to blow this on anything stupid. I'm thinking long term as well as right now money. Lately I've been thinking alot about my future and I feel this could be the first step for me to become prosperous. The saying goes "Always make your next move your best move". I just need advice on what move that should be.

Answer 1

Pay credit cards first if you have any.

Also establish an emergency fund.

once that is done.

Decide how soon you might want to purchase a home. if in less than 5 years invest the money in a bond fund or less than two a money market.

Then beyond those things I would recommend an aggressive fund like CGM Focus (returned 79% last year, only lost money once since 1997 is still gaining for this year.) for you age group. Preferably in a Roth IRA, Which returned

But if your cannot stomach volatility, a vanguard stock index fund will do.

Answer 2

Well, first of all I suggest you to understand which is the domain of investment you prefer:

-equities (stock)

-real estate

-commodity

-art...

Then you keep focusing inside of this sector which is the domain you prefer because it is:

-important to have a niche of competence where you can find good ideas of investments

-impossible to be a great investor in stocks, art, real estate and all together.

After having found a domain you like and you like read about and you are able to find informations about: the search can begin for your good investment.

Read something about Buffet, Soros, al Waleed and you'll understand that they're all big and great with different kind of interests!

I like stocks and I have some niche where I look for investments.

Do not let othr people suggest you, try to find the way it fits to you for directly make your own investments.

Best regards

Roberto

Answer 3

Education.

Answer 4

Mutual funds would be a good option to invest. Your money could be paying a good dividend and safe. If you can find some spare time commodity futures offers a good chance of making money along with forex trading. Now I would say Mutual funds would be a very good option

Answer 5

I would say look in government bonds or index funds or something of that nature.  Treasury bonds are also another option.  They are relatively safe and usually have interest rates a little higher than bank accounts but you usually cannot access the money depending on the restrictions.

If you are more daring I would try the stock market.  If you have the time, patience, will, and research know-how you can invest in certain companies.

Remember though - high risk, high reward.  lower risk, lower reward.  The bare minimum you should do is open up a savings account and dump your money in there.  You will gain a low interest every year.  If you put $4000 in a savings account with a 2% interest rate, after a year you would have made $80 by doing nothing.

Answer 6

I would go to www.vanguard.com.  This is the second biggest mutual fund company next to Fidelity. It is also a no-load which means no sales commissions, low fees, etc. The most for your money. I would take $3,000 and start a Roth IRA using the fund "Total Stock Market Index Fund." You should do well over the years. Very well as a matter of fact. Good luck in ALL that you do with your life as well. I am a Vet BTW.