Investing my money

[stratguy620]

Well, Ive been working for a few months now, an Ive got a decent sized lump of money, but Ive just been sticking it in my checking account, where it just sits forever. Ive been wondering if there would be a better place to invest it all, so that I might actually be making some money when I wasnt using it; maybe some type of savings account with interest. I really dont know too much about financial matters, so if anyone knew of something that could help me out, please let me know...

[annie24]

I think you should talk about a financial advisor. First of all, the checking account is the worst place for your money. There are many better places for it to be.

 

Do you have debts? If you do, you should get those paid off.

 

Next, you should consider your goals. What do you want to do? Setting up a retirement account would be very good and smart at your age. Do you want a car? Do you want to go back to school?

 

Now, I don't know how much money you have or what your goals are, so I do recommend sitting down with a reputable financial advisor. Many banks have someone you can talk to. One thing you can do is put some money in an IRA account for retirement (put it in some mutual funds), you can have some in a savings account, so you can access it easily if there is an emergency, and the rest I would invest.

 

I'm not a financial expert either. I do have a financial advisor and I decided to buy a home with some of my money, and open up a retirement account and put the rest into mutual funds and stocks. I also decided to spoil myself and buy some cool furniture for my new home and get some silly things I've wanted.

 

I reccommend reading books by Suze Orman. She writes very well about financial issues, and has a book specifically for young adults. It's called the Young, Broke, and Fabulous. (Or something like that)

 

good luck!

[Tigris]

Talk to a Financial Advisor!

 

They'll advise you on many options and your money will be kept safe and secure.

 

Good luck

[katefl24]

I would say a safe bet would be a short term CD (certificate of deposit). You can get them for as little as 6-12 months, and they pay much more than a savings account (3-5% usually, versus 1%). They are also very safe, if risk is a concern for you. If you wanted something higher yield, you could get into the stockmarket but it's much risker and requires more investing knowledge. Retirement accounts are also safe but you can't touch that money without penalties until retirement so if you want/plan to use this money for something in the next few years that might not be the way to go.

 

My personal best advice? Keep saving until you can use it as a downpayment on house. I bought my first at 23 and while it was scary at first, I am SO glad I did as it has been a very good investment. But if you aren't ready for that, a CD is the way to go. You can set it up through nearly any bank easily, usually with no fees if you are a member.

[tyler711]

1) Pay off all debts, except of course a mortgage or big car payment.

 

2) Put some aside in a savings account for emergency access.

 

3) Talk to a financial planner, but get their PRICES before hand!

 

4) If you want to invest, mutual funds or CD's are a good place to start, and usually are conservative (low risk).

 

5) If you invest in the stock market, be aware that investment representatives charge $30 - $50 as a commission per trade. Say, you buy $500 in Pepsi. You pay 50 bucks to buy it, then 50 bucks if you want to sell it. You will lose most of your return (unless you have a risky portfolio) through commissions.

 

6) Stocks can be good if you find a conservative company to invest in for a long period of time.

 

7) Look into a Roth or Traditional IRA. They are tax free and has a HIGH return, but you can't access it until age 65 unless you pay a 10% penalty.

 

8 ) If you buy shares, find a company you are comfortable with. A good conservative company would be Pepsi, or Proctor & Gamble, for example. Research their basic info such as P/E ratios and their prices of shares over 1, 5 and 10 years.

 

9) A good place to get started on mutual funds is link removed

 

This is what little I know about investing! Before you make a big decision do a lot of research!

[shyanne]

RRSP, stocks & bonds, GIC's, mutual funds, fixed term dep. lots, just ask your bank.