Stocks are risky. You have to know ALOT about them or rely on shaky advice, since noone legally knows what is truly going to happen. I would highly suggest mutual funds. There is much less gambling on information that may or may not be reliable. Funding a ROTH IRA is always the key to any good portfolio as well. You can put in 3K/year and pay the taxes up front, not at the end. Big tax shelter. Then when you retire you take all that money out TAX FREE. If you start at 23 years old and invest that 3K until you retire, you are a multi-millionaire. Bonds usually have lower returns. CDs are horrible (a horrible 2% rate of return! Never use this!). Treasury bills are a joke too. Regualr IRAs are taxed at the end (#3 best option). Talk to a good investment planner or do research on a good no-load mutual fund and let your money sit. Find a mutual fund that has been around since the 1970s. THESE Are the ones that you know will do well because they were able to survive the last real downturn int he economy (the economy has not had any real turbulence sine the 70s besides two small down-turns which were mislabeled recessions). They typically yield much higher than 12% if you get one of these.
So, my recommendation would be $3K/year into ROTH IRA and the rest in a good no-load growth mutual fund that averages at least 12%/yr.
Did you know that a 20,000 car can cost you over a million dollars? You make payments on a NEW car that depreciates to nothing in 10 years. You invest that same amoutn of money in ROTH and mutuals and will have over a million when you retire (if you are under 30 years old). Kinda makes you want to drive a medium range 6-8K car with no payments, huh?
Check out Dave Ramsey ont he radio. His web site is :
www.daveramsey.com or
www.financialpeace.com
A superb persont o get you on your way to GOOD sound intelligent investing wihtout gambling your money away in the stock market.
Best of luck
Dave
Linear Mode
