| Want to invest tax return in Feb. College student |
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strk500
New Poster
Cash: $ 0.45
Posts: 2
Joined: 27 Nov 2004
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| Want to invest tax return in Feb. College student |
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Hi, I'm 19 and looking a way of making money in the future. I want to invest my tax return which should be around $700. Just wounder what is the best way of doing this. Should I invest in a bond or go to a stock broker. I'm not looking at making fast money, i'm willing to put this away for years and letting it grow. I'm also planning on investing all my tax returns in the future because i spend everything I get which isn't good. Any help would be greatly appreciated.
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Sat Nov 27, 2004 1:37 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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Congratulations on your fine decision to invest this money. Too many folks (not just folks your age) look at a tax refund as "found money" and therefore use it to treat themselves. You're making a very wise decision to treat yourself to a retirement fund.
I'm assuming that this was earnings from a job - why not open up a Roth IRA? This way, you'll be much less inclined to use the funds for other purposes since it will be tougher to get to. You could also invest the funds in a traditional (deductible) IRA, but I think the Roth probably makes more sense for you. Since you're getting the refund in February, you could make the contribution on behalf of your 2004 tax year.
As far as what to invest in (within the IRA), stock mutual funds make a lot of sense for someone at your age. I would spend some time learning about investing between now and then, and then once you've gotten some ideas together, you can check back in here and bounce ideas off of the forum.
One thing I would definitely NOT do that you've suggested is to go to a stock broker with this money. This investing process is something that you can and should undertake on your own - for a whole lot less money. As you develop your knowledge in investing and begin to consider more sophisticated methods of investing, you could seek out a fee-only financial planner to validate your decisions against.
Hope this helps -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Sat Nov 27, 2004 3:30 pm |
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strk500
New Poster
Cash: $ 0.45
Posts: 2
Joined: 27 Nov 2004
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I already have a retirement fund through my work. I put 4.5% of my paycheck in there, so I already have that going for me. Also is there any good books to read on mutual funds or web sites. Is there any web sites that let you use fake money, so you can experiment before I put real money in Feb.?
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Sat Nov 27, 2004 3:54 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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That's great that you already have a retirement fund going.
What is your eventual plan for this money that you're planning on setting aside?
Here are a few good "get started" books:
• The Richest Man in Babylon, by George Clason
• Seven Stages Of Money Maturity: Understanding the Spirit and Value of Money in Your Life, by George Kinder
• Bogle on Mutual Funds: New Perspectives for the Intelligent Investor, by John Bogle
• Just Give Me The Answer$, Expert Advisors Address Your Most Pressing Financial Questions, by Sheryl Garrett (and me!)
Hope this helps -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Sat Nov 27, 2004 4:18 pm |
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stkrider
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 28 Nov 2004
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Open up an online trading account, buy a penny stock.
I bought cnes on the 24th. 250000 shares(.0043) for $1100. I sold at .0087, money doubled in 2 days
I bought ddyn on the 24th. 25000 shares(.038) for $950. I sold on friday at .065 almost double in 2 days.
$2000 into $3800, 2 days.
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Sun Nov 28, 2004 7:13 pm |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 795
Joined: 19 Sep 2004
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quote:
Originally posted by stkrider
Open up an online trading account, buy a penny stock.
I bought cnes on the 24th. 250000 shares(.0043) for $1100. I sold at .0087, money doubled in 2 days
I bought ddyn on the 24th. 25000 shares(.038) for $950. I sold on friday at .065 almost double in 2 days.
$2000 into $3800, 2 days.
Do you do a lot of penny stock and day trading??
As far as the guy wanting to invest his money.... I agree with others read up read up and read up... the more knowledge before you jump in the better off you will be  good luck.... Worst case get an ING direct savings account that givces you a return of 2.25% If you want to get 25 bonus for signing up PM me and i will send you an invite, you can only get the 25 bucks if you are invited.
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Mon Nov 29, 2004 11:37 pm |
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