My brother and I won in nationwide Young investor essay contest

[chris64]

Just got a call from liberty investments informing me and my brother that we won in the Young investors essay contest.

My younger brother got $5,000 for getting 1st in the 7 and 8 division. I was entered in the 9 and 10 grade division and got 3rd and I'll be getting $1000 worth of shares(Young investors fund-- Stock fund).

Don't know why I'm posting this, Maybe I'm still in shock(I had a little over $1000 before this contest and my brother had even less than that).

I'm extremely excited right now, maybe because I haven't thought about taxes.

[DutchMaster]

Whow thats cool. you have some link to the competion page?? Nice you kept the score in the family.
Mind the RIA and so: What are your plans on spending the money??

Congrats!

Send me the link and your info, and I will add this to the frontpage news if you want.

Robert Richmond

[caddmannq]

Good work guys!

Now, invest it wisely

[chris64]

They haven't updated the site to show the winners yet because they haven't gotten a release letter from us to allow them to use our name. Will post it once the contest site gets updated.




caddmannq:
Does computer hardware count as an investment. Actually the prize money is in the form of shares. To bad I learned enough to know not to blow it all on computer hardware.

EDIT: Thanks for the congrats.

[zen]

Originally posted by caddmannq
Good work guys!

Now, invest it wisely

Got any tips?

WOW!!!! Congrats!!!!

[Tarp2]

Nice job. What did you invest in? hint,hint

[chris64]

Originally posted by Tarp2
Nice job. What did you invest in? hint,hint

It was an essay contest. Anyways if your interested in what we're investing in, we are in the liberty High yield bond fund. But the prize that we win will be in the form of Young Investors fund shares. The Young investors fund has taken a big hit recently but guess its good to buy when its low.

[blackwatch]

yep, bonds are good if you dont want any risk, or we are in a bear market which we are. the more the risk, the better the return. the stock market has averaged at least 13% or so over the last 50 years. I would invest in a mutual fund that is no load and has low maintenance fees. you are young enough yet that your risk tolerance should be high. my advice is to invest it and allow for re-investing of the dividends. then forget you own it...for the next 40 years. i invested $1000 when i was 16, 9 years ago and it is now worth $5000 or so, due to compound interest and reinvestment of the capital gains/dividends.

If you sell the fund early, which i believe is 2 years or less, then you have a higher capital gains tax...used to be 28% for early sales and 20% for late sales. Eventually you might want to think about a roll over intro an IRA. The Roth IRA's are usually the best as you can borrow against them for house purchases or college, but i wouldnt suggest that as you would be losing your interest and capital gains.

Buy low and sell high is the best strategy. This is a buyers market, and just remember that the 13% i mentioned above was through at least 2 recessions.

congrats and choose wisely.