She has about $2000 in a jr savings account. Needless to say it's not gaining much interest. Any ideas on low risk ways of investing it for a maximum return?...
what is the best investment for the long haul of making a person more money a mutual fund or company stock? Does anyone now of hot stock pic in either catagory?...
Investment experts (and others ;-)
Given the distinctly dodgy economic circumstances we are in at the moment I fear the home I own is heading towards negative equity (although only slightly) and ...
What are you all currently doing with your mutual funds accounts given the current economy and economy prediction? Is there any wise selling stretegy if you decide to sell (in spite of losing money ...
Yes. I have held stock for many years. Over a long period of time, if you have a diversified portfolio, historically you can expect to increase the value of your investments by about 10% to 12% or even more annually. If you have a buy and hold strategy, the 10% to 12% is tax deferred until you decide to sell. Even then the gains are at very tax advantaged rates, about 1/2 the normal tax rates.
The disadvantage is that when the market crashes, which it does more frequently than most people would prefer, it can cause a lot of sleepless nights.
mrstockbond
The advantages is that by holding a great money-making company over time you can make huge amounts of money through compounding. One example is Warren Buffet, he did really well by the Buy & Hold method. The disadvantage is that by holding a company that will not succeed with time, you will either lose your shirt or the stock will not move at all. Look what happened to a lot of companies back in 2001-2002. Some of these companies are not even close to their all time highs. People that held these companies are at huge losses.
bradwoodruff
Why hold stock:
It's simple, it is a easy way to buy a company or part of a company that you would like to own. As I purchase products from that company , I as a owner get paid.
Holding stock decreases broker fees. They only get paid when you buy and sell. So by holding stock that is good and increasing you are not spending you profits on fees.
Advantages:
Liquid, able to sell quickly.
Normally higher returns on investments
Disadvantages:
Normally stock has a higher risk than a CD or a bond.
Cost money to buy and sell stock
Christopher Griffin
Yes. I bought a stock (xmsr) and held it for 2 years and made a massive profit. Bought it while it was $3.18 and sold it while it was in the $30-37 range.
Bill G
I agree with Muncie. I have owned stocks for 20 years. A few did okay and a few tanked. My advice is that you invest in Mutual funds and not stocks. The money experts have moved their money in anticipation of market events long before individual stock holders know what's happening. With any investing, the "secret" to getting ahead is long term investing. The stocks I like to hold are the companies I do business with such as Home Depot. I can see for myself how business is going and not have to study financial reports that can say anything the company want them to say. ie: Enron.
kurticus1024
I used to
turned 3k into 13k in 2 years
Hushyanoize
for net woth growth over time. huge tax advantage as well as growth for holding stocks.
psycho
i have stocks
Lisa A
Advantage: you could make money.
Disadvantage: you could lose money.
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