Ok aside from all the car talk, i was reading the post on the S7 and i read alot of you have Mutual funds or CDs , Im 19 and im picking up my S hopefully this week if the damn thing gets outta the garage( its being looked over before i buy ) but i started to think the other day i really want to start to set aside money and invest it. Whats the best way to invest or whats the best way i should get into this. Ive worked hard and i hold an Assistant Management position at both places that im employed at, the only bills i have are some college, and my S, so i kinda have a decent amount to start investing. any suggestions?

 

open a roth IRA would be a good place to start for you.

 

I think you should think about why you want to start investing. Your goals will decide what options will be best for you.

Good luck.

 

allkingz can you explain yourself.... my goals with it, would be to make money off money i already earned, not looking to make a fortune but looking to make something at least maybe have something for when im outta school to use to pay back some loans or something ya know not like a ton of cash but a little something to avoid the " im fresh outta college, have a degree and 100k debt and no job or money " issue

 

What he's asking is whether or not you want short-term investments (to pay back school loans as you mentioned), or something long-term, to plan for retirement, etc...

I think you pretty much answered that question.

It may be best to talk to a financial advisor to see what's best for you, based on the amount of risk you're willing to accept.

 

Congrats on making a decision like this...

This really is a complicated choice to make. I think some of the posters have the right idea about your goals. I think that it may pay to contact a legitimate financial advisor for some info. Some goals you might want to consider:

1) Long term investments vs. Short term- Do you want to withdraw money within a year, or is it more long term, say 20 years.

2) What do you want to do with the money you saved - Are you looking to buy a house? Perhaps you want to have nest egg in case your financial situation changes. A Roth IRA is a good idea if your looking to the distant future, mainly because you pay taxes now instead of later (when the value of your retirement account will probably be worth more)

3) Risk Assessment - How conservative do you want to be with your money? A low-risk investment usually brings low returns - but is less likely to lose all of your investment. A high risk investment can bring greater value (especially short term) but as its nome implies, risky. As a younger person, you can probably be more risky than someone nearing retirement.

4) DIVERSIFY - the only advice I would give you is to diversify your investments. You can mix high, low and mid-risk investments. This way you won't lose all of your investments if one of them go south.

Hey- again congrats, and good luck!

 

check out www.fool.com, the motley fool's website. it's a great resource with all sorts of information about investing. and give yourself a pat on the back for even thinking about this sort of thing at your age!


start here

 

Some nice index funds would work pretty well too....hardly any risk involved and you'll get a decent return in the long-run.

 

The BEST investment for you might seema little peculiar. and what most people over look. Not only should you look at appreciation but also depreciation. For example, lets say you and I each buy a home. We also each invest in the stock market 10K. Lets say you make 20% on your investment. I on the other hand lose 20% of my investment. But lets say the neighbor hood turns bad and you lose value in your home. On the other hand my neighbor turns nicer and my home's value goes up. So overall, even with stock depreciation and home value appreciation, I made out better then you.

So now you have a little money saved up you want to invest to make money on it. How much do you have? Maybe $2000? Lets say you become fortunate and make 20%. So now you have $2,400. (I am keeping it simple so not taking into consideration taxes, fees, etc). So you made $400 in a year. Not bad at all of not doiing anything right? Well I read you are now buying an S2000. That product will depreciation faster then anything else you can buy. So not only is a car a very bad investment, but it also takes away from the capital that you can invest that will hopefully appreciate.

So if you want the BEST advice, then don't buy such an expensive car.

Proabably didn't want to hear that eh? Well your next best choice is to max out your 401K if you have one available. Max that out first before you invest in anything else. Afterall, its tax free for now and much lessed tax when you finally take it out later!!

Good luck!

 

the car isnt an investment for me, its more of a necessity im sick of pouring money into other cars to make em fast or handle well, (currently playing wtih a 2.5l RS impreza) but i want the car for its ability i know im goin to lose value but its not the monetary value im worried about with the S , its the value i get everytime i get on the gas or swing around corners, or compete in an autoX - its all about the drive....

my investment i guess would be a mild-to high risk for a short term, and i intend to look over the options you all have suggested...thanks a ton guys but now i got ALOT of research to get on