What to invest in...

[Smarty]

As a 20 year old with about 10k-15k laying around in the bank doing nothing, what are some nice investments I can get myself into? Real estate, stocks, mutual funds? I have plenty of free time in the next month to do some research, so if someone could point me in the right direction, I would really appreciate it.

[Maulik]

you can invest in the S&P500 index, over the past century it has annulised returns of 10.5% or so.

Nothing over time is going to do so well.

[MoreWineII]

Satellite Radio. MMOG Sweatshops.

http://www.1up.com/do/feature?cId=3141815

Poker...haha.

[lozen]

DYN Dynergy NYSE will be at $10-$15 in 1 year

[moondogg]

[ QUOTE ]
you can invest in the S&P500 index, over the past century it has annulised returns of 10.5% or so.

Nothing over time is going to do so well.

[/ QUOTE ]

Ditto ditto.

[MarkL444]

theres a stock market forum ya know

[GFunk911]

[ QUOTE ]
you can invest in the S&P500 index, over the past century it has annulised returns of 10.5% or so.

Nothing over time is going to do so well that you are knowledgeable enough or ready to invest in

[/ QUOTE ]

I agree 100% with the person I quoted, just with my addition in bold. For somebody in their early 20s, an S&P index fund is the way to do (I recommend Vanguard, they have the lowest fees). Once you get experience and some more funds, you can look into stuff like real estate and other, more involved investments. 100% of my investments are in Vanguard S&P and near-S&P funds.

[PokerCat69]

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theres a stock market forum ya know

[/ QUOTE ]
I was about to say that.

[Maulik]

[ QUOTE ]
[ QUOTE ]
you can invest in the S&P500 index, over the past century it has annulised returns of 10.5% or so.

Nothing over time is going to do so well that you are knowledgeable enough or ready to invest in

[/ QUOTE ]

I agree 100% with the person I quoted, just with my addition in bold. For somebody in their early 20s, an S&P index fund is the way to do (I recommend Vanguard, they have the lowest fees). Once you get experience and some more funds, you can look into stuff like real estate and other, more involved investments. 100% of my investments are in Vanguard S&P and near-S&P funds.

[/ QUOTE ]

I should have added what is in bold, but its done. Now in all likihood is not the best time to get involved in something that is already red hot; namely the real estate market, you're likely looking at a crash and burn scenario.

If you have 0 time or just want to make a better investment than most investment advisors & outperform 75% of all funds; S&P500.



S&P500 index fund via Vanguard

[edtost]

[ QUOTE ]
theres a stock market forum ya know

[/ QUOTE ]

biggest bunch of idiots on 2+2, by far.

[Smarty]

I didn't post it there because I wanted to keep the investment possibilities broad.

[Freakin]

Use a good investment vehicle while you can. Load a Roth IRA to the max every year. Invest in a 401(k) and use the deductions.... be smart about how you invest, not just what you invest in.

Freakin

[lucas9000]

[ QUOTE ]
[ QUOTE ]
theres a stock market forum ya know

[/ QUOTE ]

biggest bunch of idiots on 2+2, by far.

[/ QUOTE ]

an argument can be made for the wpt forum, but it's such a close call that i can't really argue with you.

[balkii]

</font><blockquote><font class="small">In risposta di:</font><hr />
Use a good investment vehicle while you can. Load a Roth IRA to the max every year. Invest in a 401(k) and use the deductions.... be smart about how you invest, not just what you invest in.

Freakin

[/ QUOTE ]

i am currently doing the Roth IRA - how does this compare/contrast to the S&amp;P500 thing that everyone is talking about?

[2+2 wannabe]

you could buy jack 'o lanterns - i predict they'll peak right around january

[Maulik]

[ QUOTE ]
[ QUOTE ]
Use a good investment vehicle while you can. Load a Roth IRA to the max every year. Invest in a 401(k) and use the deductions.... be smart about how you invest, not just what you invest in.

Freakin

[/ QUOTE ]

i am currently doing the Roth IRA - how does this compare/contrast to the S&amp;P500 thing that everyone is talking about?

[/ QUOTE ]

a ROTH IRA is a tax vehicle the government allows with a capped maximum contribution, every year. I beleive it is $4000 this year.

Within this account which you can open with any broker, you can choose how you would like to invest your money.

[Brainwalter]

[ QUOTE ]
you could buy jack 'o lanterns - i predict they'll peak right around january

[/ QUOTE ]

I sincerely doubt that.

[balkii]

</font><blockquote><font class="small">In risposta di:</font><hr />
</font><blockquote><font class="small">In risposta di:</font><hr />
</font><blockquote><font class="small">In risposta di:</font><hr />
Use a good investment vehicle while you can. Load a Roth IRA to the max every year. Invest in a 401(k) and use the deductions.... be smart about how you invest, not just what you invest in.

Freakin

[/ QUOTE ]

i am currently doing the Roth IRA - how does this compare/contrast to the S&amp;P500 thing that everyone is talking about?

[/ QUOTE ]

a ROTH IRA is a tax vehicle the government allows with a capped maximum contribution, every year. I beleive it is $4000 this year.

Within this account which you can open with any broker, you can choose how you would like to invest your money.

[/ QUOTE ]

ok let me rephrase - is my money better off going into the s&amp;p thing? i'm into no hassle/no research investing.

[balkii]

for some reason my edit function doesnt work.

I should add that i dont plan on adding more than 4k/year. at least not yet.

[Brainwalter]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Use a good investment vehicle while you can. Load a Roth IRA to the max every year. Invest in a 401(k) and use the deductions.... be smart about how you invest, not just what you invest in.

Freakin

[/ QUOTE ]

i am currently doing the Roth IRA - how does this compare/contrast to the S&amp;P500 thing that everyone is talking about?

[/ QUOTE ]

a ROTH IRA is a tax vehicle the government allows with a capped maximum contribution, every year. I beleive it is $4000 this year.

Within this account which you can open with any broker, you can choose how you would like to invest your money.

[/ QUOTE ]

ok let me rephrase - is my money better off going into the s&amp;p thing? i'm into no hassle/no research investing.

[/ QUOTE ]

Here's my understanding - you open a Roth IRA, and you tell them to invest the money in an S+P Index fund.

[2+2 wannabe]

[ QUOTE ]
[ QUOTE ]
you could buy jack 'o lanterns - i predict they'll peak right around january

[/ QUOTE ]

I sincerely doubt that.

[/ QUOTE ]

it's a simpsons quote....

[Brainwalter]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
you could buy jack 'o lanterns - i predict they'll peak right around january

[/ QUOTE ]

I sincerely doubt that.

[/ QUOTE ]

it's a simpsons quote....

[/ QUOTE ]

Doh!

[ddubois]

A Roth IRA, or a traditional IRA, are just kinds of accounts. For instance, I have several accounts with Charles Schwab: a Roth account, a traditional IRA account, and a 'Schwab One' account (the latter is like a credit card, checking account, and trading account rolled into one). In any of these accounts, what I do with the funds within these accounts is up to me. I can invest some or all of the money in my Roth account in an S&amp;P index fund, or stocks, or cash, depending on my investment goals and horizon.

[Reef]

[ QUOTE ]
A Roth IRA, or a traditional IRA, are just kinds of accounts. For instance, I have several accounts with Charles Schwab: a Roth account, a traditional IRA account, and a 'Schwab One' account (the latter is like a credit card, checking account, and trading account rolled into one). In any of these accounts, what I do with the funds within these accounts is up to me. I can invest some or all of the money in my Roth account in an S&amp;P index fund, or stocks, or cash, depending on my investment goals and horizon.

[/ QUOTE ]

go with the Roth instead of traditional IRA

[ddubois]

Or, have both. You need a traditional IRA to rollover your 401k into when you change companies. Unless you want to leave your 401k in whatever expense-ratio-o-rific shithole that kickbacked the most money to your old companies' corporate honchos.

[Smarty]

Would this IRA/Roth information apply to me? I am currently in college and have no "real" job aside from workstudy at school (and poker of course).

[ddubois]

The good part about a traditional IRA is that, on the year you contribute, you take it out of the amount the government considers your income, thus reducing your tax bill. If you have (nearly) no income that year, a traditional IRA is not getting you all the benefits it might normally (even though you are still deferring all the interest/capital gains you get on the investments in the IRA, until you take a distribution).

A Roth IRA is different, and I only learned recently the details of these. A Roth IRA does nothing to reduce your tax basis up front, your income is your income and your tax return is whatever it would be. But the cool part with Roth is, you never pay any tax after that. Nothing on the capital gains/interest, nothing on the distributions. So, Roth should be perfect for you. The fact that you pay tax on your income up front is irrelevant for you, since you have nearly no income to report and no tax to pay. Put the max you can in Roth every year. The 4k you put into a Roth at 20 could be a tax-free 300k-400k by the time you are 70.

[chaas4747]

How about opening an animal sex farm in Washington. Sounds like that is going well.

[swede123]

Yeah, as long as you can manage the two rules of Washington State Farm Sex Club...

1) Don't screw the chickens and other "weaker" animals.
2) When screwing the bigger animals don't get killed.

Swede

[tworooks]

Invest in MXO(Maxtor). Buy a lot too. I got in at $12, its currently in the $6 range.

[AceHigh]

You should learn to invest/play the stock market when you are young, by picking individual stocks. It will be well worth it later in life if you become skilled at it.

Plus stocks are very liquid, so if something happens and you need the money...you can get your hands on it.