Stocks and trading and whatnot!

[Chreman]

So I've got some cash built up, something like $1,000, and was wondering if any of you have some suggestions for investing or links to informational sites. I have a basic understanding of how it works, but basically I'm curious of any suggestions to make the most out of tossing some small cash into penny stocks or something a little bigger.

Punch and !

[Saga]

go to fidelity.com, open a roth IRA account, invest it in a Fidelity Freedom 2050 fund.

[guartz]

how old are you? IRA is a retirement plan... and if I remember correctly, Roth IRA's are only different because your contribution is taxed, instead of your withdraw (at age 59 and 1/2) earlier withdraws I think there is a 10% additional tax.

If you want to try your luck at trade, you should pick up forex. Or you can do common stocks, but I wouldn't advise it atm, since penny stocks haven't been doing well.

goto
babypips.org to learn more about forex.

[CMMeast]

Fixed rate CD at any local bank. I opened one over the summer when WaMu was doing a special rate of 5.3% over one year.

[Serif]

1. Max out your 401k
2. Max out your ROTH IRA
3. Invest whatever you have left

Free Money > Tax Free Money > Money

Not sure if it is the same everywhere but my Roth IRA is going up to 5k from 4k this year.

[guartz]

1. Max out your 401k
2. Max out your ROTH IRA
3. Invest whatever you have left

Free Money > Tax Free Money > Money

Not sure if it is the same everywhere but my Roth IRA is going up to 5k from 4k this year.

There is no tax free money. Not in America. With the slight almost exception of 403 B /501c3 plans.

Besides, this guy is investing 1,000 not planning to retire. lol

[evilbau]

1. Max out your 401k
2. Max out your ROTH IRA
3. Invest whatever you have left

Free Money > Tax Free Money > Money

Not sure if it is the same everywhere but my Roth IRA is going up to 5k from 4k this year.

close

1. Max out 401k up till employer match (change to Roth 401k if your employer offers it)
2. Max out Roth IRA
3. Max out 401k
4. Fund a brokerage account
5. Put living expenses/savings in a money market or HYS account.

Goes without saying that you pay off your high apr credit cards first and other high interest loans.

[Serif]

Haha, I am just saying from a common person standpoint.

Sorry meant to say the amount you pull out of your Roth IRA won't be taxed again.

I want to retire when I am 45 damn it!

These numbers off the top of my head.

By just investing 4k a year into a Roth IRA, around the age of 21, you will have around 2mil when you turn 59.5.

[evilbau]

go to fidelity.com, open a roth IRA account, invest it in a Fidelity Freedom 2050 fund.

that is for the truly lazy, but it doesn't really take advantage of the tax advantaged status of Roth IRA accounts. Since you aren't paying cap gains and such you might want to put it into a more managed fund with higher yields (good luck finding one ), just make sure the fees don't eclipse the additional gains.

[Saga]

go to fidelity.com, open a roth IRA account, invest it in a Fidelity Freedom 2050 fund.

that is for the truly lazy, but it doesn't really take advantage of the tax advantaged status of Roth IRA accounts. Since you aren't paying cap gains and such you might want to put it into a more managed fund with higher yields (good luck finding one ), just make sure the fees don't eclipse the additional gains.

im 19, easier for me to let fidelity handle it. i check it daily and put in 150-200 a month, by the time 2050 rolls around i should have a good sum of money saved up from contributions and capital gains.

[Groovebox]

I do IRA through my employer and have been investing $250/month in a precious metals mutual fund through USAA since 2002 http://finance.yahoo.com/q?s=USAGX

[guartz]

precious commodity investment is always win.

I always felt IRAs and other deferred compensation plans are somewhat of a rip-off. Just a personal opinion. I think people are better off with indexed annuities.

[Izzy]

I have a 403b account since my company is not-for-profit. Is that any different from a 401k for me? Does it affect me at all or juts the company?

[evilbau]

precious commodity investment is always win.

I always felt IRAs and other deferred compensation plans are somewhat of a rip-off. Just a personal opinion. I think people are better off with indexed annuities.

what? Do you even know how it works? you can buy index funds within your roth IRA with after-tax dollars and when you reach retirement and sell it, you don't pay cap gains taxes on the money. They aren't mutually exclusive. Don't say something is a rip off if you don't know how it works. A large percentage of my roth ira is in an international index fund.

[guartz]

precious commodity investment is always win.

I always felt IRAs and other deferred compensation plans are somewhat of a rip-off. Just a personal opinion. I think people are better off with indexed annuities.

what? Do you even know how it works? you can buy index funds within your roth IRA with after-tax dollars and when you reach retirement and sell it, you don't pay cap gains taxes on the money. They aren't mutually exclusive. Don't say something is a rip off if you don't know how it works. A large percentage of my roth ira is in an international index fund.

except most annuities guarantee income for life and invested principle. lol ..among other things.

Maybe you should take your own advice, eh?

[guartz]

I have a 403b account since my company is not-for-profit. Is that any different from a 401k for me? Does it affect me at all or juts the company?

You won't pay taxes when you withdraw it at 59 1/2

[Deuce]

All really depends on how much you're willing to risk with your $1000, yeah you could put it in a mutual fund, but you can make more money if you put it into riskier stocks. Mutual funds is one of the safest ways to go though. Also depends on how old you are too and whether or not you have the patience for something to accumulate over time say 20-30 years.

[Sigi]

He's 19 years old. Honestly, I'd start with what Evilbau suggested.

PS. Congrats on being responsible with money! good start!

[evilbau]

precious commodity investment is always win.

I always felt IRAs and other deferred compensation plans are somewhat of a rip-off. Just a personal opinion. I think people are better off with indexed annuities.

what? Do you even know how it works? you can buy index funds within your roth IRA with after-tax dollars and when you reach retirement and sell it, you don't pay cap gains taxes on the money. They aren't mutually exclusive. Don't say something is a rip off if you don't know how it works. A large percentage of my roth ira is in an international index fund.

except most annuities guarantee income for life and invested principle. lol ..among other things.

Maybe you should take your own advice, eh?

dur i'm saying they are not comparable, one allows you not to pay tax on your investment the other is typically used to plan how you dispense it while still generating interest as you grow older. I said they aren't mutually exclusive, when you reach the retirement age you can roll other retirement plans into your annuity to increase payments or w/e. You might contribute to one up after you have exhausted the limits of tax-advantaged accounts. I mentioned how i include index funds in my own account in case you were (without saying so) touting the benefits of investments tied to a given index (as indexed annuities are).

so why the fuck would a 19 year old with 1k use an annuity now?

oh thats right it has nothing to do with that you just wanted a forum to raise your (inappropriate) contrarian opinion.

[Beckwin]

I think the best way to invest the $1k is to donate it to the Ron Paul 2008 Presidential Campaign, because when Dr. Ron Paul is elected and saves the US from the rest of the world, he'll also be getting rid of the IRS and federal income tax, which in turn will make you far more money in the long run than any IRA or 401k.