Investments for a 21 year old college student?
PP asked:
I wanted to put away some money in investments so I can just sit on it and watch it grow. I’m only 21 and still in college with only a part time job, so I don’t have much to put in. Maybe 2 or 3 hundred a month is all I can afford. I’m too scared to do stocks, plus I want something safer and more long term. Should I do mutual funds? Bonds? Which banks or companies should I check out?
I wanted to put away some money in investments so I can just sit on it and watch it grow. I’m only 21 and still in college with only a part time job, so I don’t have much to put in. Maybe 2 or 3 hundred a month is all I can afford. I’m too scared to do stocks, plus I want something safer and more long term. Should I do mutual funds? Bonds? Which banks or companies should I check out?
Kevin R:
Well, hard to convince you about stocks, so i won’t try. Buy some Bond mutual funds and don’t watch. Just keep dollar cost averaging for a couple years reinvesting dividends. Keep studying about the market and you’ll find stocks go up more.
November 28, 2008, 3:48 pmbrad:
2-3 hundred a month is a decent starting range to put into some stocks. What companies do you really like and have faith in their future growth? Oops, seen you said your scared of stocks. How about an index fund or possibly an etf? I’d go with an index fund for a beginner. A bank cd or bond would be your safest bet for cash preservation. Look into some dia or spy.
November 29, 2008, 7:06 pmEric:
Now is the time to get into stocks……Mutual funds are a good way to do this. Find a good balanced fund and have at it. Start an IRA and you’ll have some good tax incentives to save. You will be a rich person when you retire if you start saving a few hundred bucks a month at your age!
Stocks rise and fall….they are getting pretty low now so it’s time to get in.
December 2, 2008, 5:46 amjat:
I know you are sceptical about the stock market in these current times. However there are opportunities that you can realise by value investing in the marketplace. A great guy to read up on is Warren Buffet for tips on how to do this. You seem to have the right track of mind for this kind of investing and must say that I am impressed by your long term views.
Please do visit my blog at sgvalueinvest.blogspot.com for more articles
December 5, 2008, 9:08 pm