Sp0rAdiC

I'm gonna have 2-3k to spend in a few months, and i was wondering where would be the best place to start investing, when i have this amount of money. does anyone have some good links to real estate investing resources(looking to do this in the future), maybe some futures and options resources, or anything that would help me. I'm new to the whole investing thing and would really like to get into real estate and/or the stock market. Thanks

gar1976

Futures + options = lost cash. There's my pointer.

Need to list a few things.

How risk adverse are you?

What stage in your life are you at?

How old are you?

When do you need the money?

What tax bracket?


Since it's only a few k, and it doesn't sound like you've invested before, the Mighty Kreskin says......low 20's student.

Sp0rAdiC

just gettin out of high school, summer job, $10 an hour under the table, and the profit doesnt have to be huge and fast(not like it would be anyways) im looking for more of a payout that i can turn around and invest in other bigger things and kind of... keep my money growing. and im willing to take a decent risk if the payout would be worth it. so like... medium risk i suppose, id rather not lose it all

Edit: and oh yeah, ive havent had to pay any taxes yet

gar1976

You could try a few things.

Large cap mutual fund, or if you're into real etsate a REIT (real estate investment trust, IIRC). Large cap is lower risk than small cap funds, and reit will get you "into" real estate, which has been doing fairly well lately.

As far as which funds, meet with a broker (go in with your parents in order to be treated a little better.) MAKE SURE that whatever fund you get into, the fees charged (total) are no more than 1% annually. Don't get screwed into some fund that might look promising, but eats up the returns with excessive fees.

And don't invest money you can't afford to lose. Some financial advice for a young wippersnapper.

Don't expect to get rich overnight, be realistic, Mr. Buffet!

Sp0rAdiC

thanks a lot for the quick replies, and the useful information. I know a lot of my relatives have bought condos, some of them rented them out for a while and now live in them, and my grandpa bought a house on the beach in north carolina a long time ago, and now that beach is completely covered w/ rental properties. they used to rent it out, but now theyre living there, but i know they made a pretty penny off of it back in the day. i'll talk to them as well, to get some insight. thanks again!

teethman

The surefire way to succeed in the next decade on top, landownership.

With interest rates and inflation rising, less people will be willing to buy a house. The renting industry will rise again with landlords becoming more lucretive again. In the markets, low risk mutual funds are the key right now, I have yet to see anything worth throwing cash into that was not a high risk of financial suicide.

gar1976

True....if he had another few grand. But he's only got around 2-3k for now. I've almost always seen my clients do well with rentals, too. Nice investment.

Rodney

I'd say real estate, but you don't have the money yet, and most other better-yield investments... well, a lot of people are guessing which way the wind is going to blow right now, and nobody know for sure.

So, hold onto the money. Put it into some kind of reasonable money market account. Keep adding to it. Come back next year and ask this question again.

gar1976

Blow it on chicks and beer. Sure, you'll be broke, but the memories will last a lifetime.

Merlocke

go with Foreign Exchange - it's the safest place I've seen investments go in the last little while if you're willing to put the time in to learn it.

Easier than stock market - as you only have to understand the currency pairs that you're trading, as opposed to the multitude of choices you have to dig through for stock.

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ccvirginia

START AN IRA NOW! Put it into some good mutual funds. You'll thank me in 10 years.

lemans

In sorry but if you invest in Futures and Options, you'll lose your money. Futures and Options are very complex and unless you're a seasoned investor, i do not recommend futures and options.

Before you invest, you need to ask yourself, what is your investment goals? Short term or long term? What is your risk tolerance? How old are you?

By answering these questions, you can see what investment vehicle is appropriate for you. Whether it be in Tbills, stocks, bonds, funds and so on.

PM if you like to talk about it further.

Merlocke

If you're looking for a simple 10% avg growth - with little to no risk - I've got a friend that's going to show me another investing system shortly. PM me - and I'll keep you in mind once he gives me the information.

He's getting the advice from a senior at TD Canada Trust - which happens to be his mother in law, in which case - it's in her best interests to help him out. Perhaps I'll just start a new thread on this if it gets big enough.

It's not quick free money - but it is a decent growth rate. Safer than trading it yourself in FX or Futures realistically. (even though I use FX myself). If you're in for the long haul - I say this would be the proper way to go. For now - chuck it into good ol' ING direct for a little gain while you're waiting on what to do with it. A fraction of 2% is better than nothing.

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-=[ Merlocke ]=-

Merlocke

Real Estate has produced more of the world's millionaires hands down.
Why do you think there's that little board game called "monopoly"?

See how much more a house gives you on your property? - Just like in real life. A couple good investments in land - and you're set. Problem is that it takes a larger amount of capital to get started. If you're in the Canadian - BC area - I can put you in touch with people in Kelowna - or Langley (whichever's closer to you) who can get you started in a decent real estate venture when the time comes. They're doing quite well and are looking for more investors. They're also my mentors for all of the other financial scenarios that you see me post on this board - and damn do they know their stuff. The one in Kelowna is making around roughly 10k/month right now - set to become 100k/month as the projects reach completion. It's sick how much real estate can make...

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-=[ Merlocke ]=-