 I'm a college student and a newbie at investing and could use some advice...? |
| I'd like to start an IRA and a stock portfolio and am wondering where to have my accounts at? Schwab? Fidelity? I need low-cost services due to being a student. Thanks for any help.... |
|
 Forex trading, is it just gambling? |
| Some local governments even declare it illegal. Why are some people so averse to it?... |
|
 Day trading?? |
| does anyone know any good books, programs, or anything that could help me learn about trading stocks. i want to get into it but i know nothing abou it.... |
|
 What does bear & bulls in the stock market signify? |
| In the stock market I know that there exists the terms bulls & bears but I 'm unsure as to what do they actually signify.... |
|
 Buy mutual funds now or wait until later? |
| I am in a position to purchase some mutual funds for my retirement portfolio. Hopefully retiring in 5 to 10 years. I'm debating whether to purchase the funds now or wait until the fall or ... |
|
 Money to make money - Lottery odds? |
Have you thought of the following
Okay, the winning odd is 14 million to 1 in winning lottery.
How often does it have more than 2 winners? If you have 14 million dollars, you will ... |
|
 I am looking to invest some money, perhaps in stocks? |
| I am looking to invest 1,500 dollars. I am only 18 and I am looking for it to be about a 5 year investment. I would like to put more and more into it every so often so I am assuming my only option ... |
|
 How much do you trust online shoping? |
| On a scale of 1 to 10 how much do you trust online shoping?... |
|
 Where to make my money grow faster? |
Im 23 and an employee from a medical transcription company... I want to save money for future use but dont know where to invest it or how to make my money grow faster....
I always failed to save ... |
|
 If you want to become a trader, should you study finance or economics? |
| Please explain as well why you chose either finance or economics? (I'm currently debating which I will go into when I go to College)... |
|
 If share market is risky for 20 year old student,who have 20000Rs,than what is next option to make more money? |
| i'm BCA 2nd year student,i have 20000Rs. which is not in use for me now days,i spent very less.So how can i make my money more with or without investing?... |
|
 What is the best investment I can make in stock!? |
| just trying to see what are best stocks to invest.... |
|
 Investing in gold and silver? |
| i wanna start investing in something so i thought the safest bet would be to start with gold and silver. is this a good choice? are there any other good investment options for begginers to make a ... |
|
|  |
Stacey | Bonds or stocks....What does age have to do with it? |
We have 100% invested in bonds, I am 29 and my husband is 34. We have had it this way for about 12 years. We received a letter in the mail from our investor Vanguard that basically for age range we are as far from the ideal investing as possible. Is this true could our earnings a year be doubled, trippled, anything? What do you do?
Additional Details
WOW, that's a heck of a lot to swallow!!! Add anything needed w/ this extra info please. We have 5 children all togethter, daughters no less. Our employer Aultman Hospital matches everything we contribute. We know medical but nothing to do with the market is it safe to let some other third party make these choices for us or not? We have a significant amount invested in our bonds so I don't want to make ill choices with our disciplined spending, However at the same time I would like to live while we can and have a little fun with this! |
 |
 
muncie birder
 |
you have already received a bunch of answers, but allow me to add my 2 cents worth. Bonds are not good long term investments. They suffer from several problems. First, the income is fully taxed at whatever your current tax rate is, unless they are contained in a Roth IRA account. Are they? Second, the government manipulates interest rates to serve its own purpose and its purpose is to keep interest rates low because the government is the world's largest borrower of money. Third, inflation is continually eating away at your principle at the current rate of 4%.
Over the long term and you are at an age when you are still facing the long term, stocks beat inflation by about 6% annually. However, there is a trick to that. That trick is in having stocks that do in fact perform up to the average. Fidelity has equity mutual funds that do match that performance. They also have mutual funds that have not performed up to that average. To give oneself the best chance of matching or beating the average, one needs to allocate ones assets among a variety of different funds or stocks with different objectives or in different sectors of the market. One interesting option is index funds. They are designed to match the average, so to speak. Only there are over 200 of these things geared to match different averages. Confusing, isn't it?
Fidelity is a great company and I am very pleased that they brought this to your attention. They are looking out for the welfare of their clients.
Investing in stocks does present risks. There is no doubt about it. But investing in bonds also presents risks and I am not certain that the risk are any less. The volitility is certainly less, but I am not certain that the risks are.
The best fixed income investment currently in my opinion is 6 month t-bills at about 5%. Virtually no risk. Are your investments in t-bills? Fidelity sells t-bill directly for the goivernment every Monday. No fees to purchase them. Minimum investment is $1000 face amount. They are sold at a discount to face and redeemed at face. Alse tax free from state and local taxes.
If I were in your shoes, I would invest 25% of my money in foreign equities including China, India, Japan, and Europe is about equal amounts. 25% in t-bills and 50% in U S equities in equal parts into small cap stocks, value stocks, S&P 500 index, and dividend paying stocks. |
|
Ron Mexico
 |
typically bonds are lower risk and return, so they are for people getting reasy to retire. stocks have a higher risk and return, so are better for younger people.
You should probably consider diversifing with some small cap growth, large cap value and international funds.
But it is all up to you and your risk profile. If you need more explination, email me @ dave_xucc@yahoo.com |
|
joyce_mannering
|
Over a long-term horizon stocks will outperform bonds (at least they always have in the past) but you will see greater fluctuations (more ups and downs) than bonds. Since you are young, you have a long time to invest and can ride out the ups and downs.
I suggest you read the literature Vanguard sent you carefully or visit their web site. They offer terrific advice. |
|
Lisa'sGurl
|
Hi,
One of the things that my advisor has told me, ( I'm 28) is that because of my relative youth, there is a lot more to made by looking into a flucutuating market, as opposed to fixed rate returns on bonds. The difference is that because you are young, you can wait until the timing is right before you move any money around, whereas, when you are older, you need to be able to access it quickly, and can't always wait until the market is performing a certain way.
Generally, what the recommendation has always been is that the younger you are, the more you should put into high risk-high return categories, as opposed to the guaranteed return at a lower rate. . ..
Basically, that older folks are depending on this for income, and so they can't afford a volatile economic situation while the reality is that if you savings were wiped out tomorrow, you'd still have 35-40 years to build it back up before YOU retire. |
|
Jordan K
 |
Basically, the younger you are, the more you should have in stocks. In the long run, stock have a better return. Since you are young, you will be able to wait out any downturns in the market.
When you are older, or going to use the money soon (college), a quick downturn can really hurt you. So it is advised that you stay in bonds.
One note, bonds can lose value if they are cashed in before maturity. Example: If you have a 30 year government bond with an interest rate of 5%, and the current rate on a similar bond is 6%, when you go to sell your, it will be worth less than face value. if you wait til it matures, you will get all of your money back. |
|
ask me how
 |
bonds= low risk stock= high risk
if old take bonds if young take stock |
|
NirmalJain
|
You should learn about asset allocation, which varies according to age, circumstances and risk appetite of the individuals.
A thumb rule for asset allocation is that one's percentage of total investment in bonds (or other interest bearing instruments) should be equal to his/her age and remaining in equity or equity mutual funds. See the following table:
Age 25 yrs 25% in bonds 75% in equity
Age 40 yrs 40% in bonds 60% in equity
Age 50 yrs 50% in bonds 50% in equity
Age 65 yrs 65% in bonds 35% in equity
Age 80 yrs 80% in bonds 20% in equity
As you can see the older ones have more allocation for bonds, as the risk bearing capacity (of losing principal) goes on decreasing with age because one does not have time / working life to recover the lost money. whereas younger person has the time in his / her favour.
Pl remember this is the THUMB RULE. It does not take into consideration many other factors, such as risk appetite, individual circumstances, no. of children, their age, dependents etc. Better you consult a good financial planner. |
|
Yardbird
|
You need to read a good book on asset allocation. I recommend
The Only Guide To A Winning Investment Strategy You'll Ever Need 2005 (Hardcover)
by Larry E. Swedroe |
|
mukyon1
|
as a banker i can assure you that you are in the right place.
investing have two side win or risk ,so be in the non risky side, get the interest on your investment annually, knowing that what could be double or triple winning, could be the same but to the other side meaning losing. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
9 | 8 minutes(s) ago
| | | |
9 | 47 minutes(s) ago
| | | |
9 | 1 hour(s) ago
| | | |
8 | 2 hour(s) ago
| | | |
9 | 5 hour(s) ago
| | | |
8 | 10 hour(s) ago
| | | |
9 | 1 day(s) ago
| | | |
9 | 5 day(s) ago
| | | |
9 | 2 week(s) ago
| | | |
10 | 1 month(s) ago
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
