NationStates Jolt Archive

I'm currently working a fast food job with varying hours. Though I make a lot more money than I had ever possessed in my life up to this point, I also recognize that it is not enough for, say, moving out and living on my own, or paying for college. So, I am contemplating investing in some stocks, mutual funds, or whatever. I have very little knowledge of such things, so I must turn to the economic experts of Nationstates for advice. Before you give advice:

At this time I am willing to invest no more than 50$ American in one specific stock and/or company. I am also willing to invest no more than 150$ American total at this time. As I make more money this is, of course, subject to change.

Now, some things may seem obvious--invest in companies like Microsoft--but I am hesitant to do anything without more knowledge. Further, how do I invest? I honestly have no idea how to go about it. Of course, considering the nature of this thread, this could conceivably be a source of advice for all potential investors. So, I suppose, one should keep that in mind.

The way I did it was put it in a normal cash account first at the bank, and every 100 I transferred to an ISA account.

ISA accounts got high interest far above inflantion but the problem is, you have to apply to get the money out a month in advance.

So I use my cash account for bits and bobs while I pile money away in the ISA.

Edit:

Good news, I have now US$30000, bad news is that University is US$45000 for the 3 years. (That is fees and accomandation.)

Well, I might talk with a financial advisor. You don't really have enough to get started yet. Like a typical mutual fund account requires a minimum of $250. And that's probably a good place to start. You can get specific advice from a financial advisor depending how much money you'll be able to anticipate saving over a period of time. But generally it's probably going to be savings account, then mutual fund for you.

I actually sold off some stock I got a while back so I've been reading up on some funds. There's a Smallcap fund that looked attractive, but I planned to go with an energy or reasource fund, and after reading selected a general reasource fund through Ivy. This is based on the idea that energy uncertainty is likely to continue for the foreseeable future, and the investment that will be done, be it either in new technology and infrastructure will likely lift my chosen fund dispropotunately higher than were I to "gamble" as a private investor, not that I would even have equal opportunity to participate in such investments. China's heavy investment in infrastructure, copper et al, and policy of actively attempting to isolate the US from resources will also drive up prices. And hence revenue for the fund. For $250 dollars, anyone can share in that.

I don't have so much money and expertise that I can esentially gamble with more exotic and potentially profitable financial instruments (options etc). For me playing the market wouldn't be a whole lot different than roulette. So I protect myself with mutual funds, and stocks I happen to really like when I find I have a little unexpected money. Then I hold on to them for a long time. Until I don't like the enviroment anymore.

For instance, one of my mutual funds that's been a very solid performer over the past 10 years is centered in North America. If I'm pessemistic about that economy, I might use some rights I have to move equity in that to an Asian or European fund in the same family without incurring additional expenses.

It's generally best to sock away what you can afford. Eat out less, get the generic ice cream not Ben & Jerry's, drink less soda, wait for that must have DVD on sale for $8 a year after it's released. Then let that money quietly work for you. You'll live a little more spartan life, but in a few years you'll surprise yourself with how much you have.

For stocks, I'd avoid Microsoft for a little while unless you know something I don't ;). But generally they seem to be chasing other companies into other markets as they try to beat back anti-trust regulators intent on molesting their crown jewels. Now Pepsi there's a stock I like. They basically sell corn syrup, corn powder, and fake cheese poweder, probably made from corn, as a comparitively expensive lifestyle. They've been cooler than Coke since the mid 80s, and that shows no hint of changing. But a mutual fund is a better investment for you assuming you don't want to use the money for YEARS.

Well, I might talk with a financial advisor. You don't really have enough to get started yet. Like a typical mutual fund account requires a minimum of $250. And that's probably a good place to start. You can get specific advice from a financial advisor depending how much money you'll be able to anticipate saving over a period of time. But generally it's probably going to be savings account, then mutual fund for you.

I actually sold off some stock I got a while back so I've been reading up on some funds. There's a Smallcap fund that looked attractive, but I planned to go with an energy or reasource fund, and after reading selected a general reasource fund through Ivy. This is based on the idea that energy uncertainty is likely to continue for the foreseeable future, and the investment that will be done, be it either in new technology and infrastructure will likely lift my chosen fund dispropotunately higher than were I to "gamble" as a private investor, not that I would even have equal opportunity to participate in such investments. China's heavy investment in infrastructure, copper et al, and policy of actively attempting to isolate the US from resources will also drive up prices. And hence revenue for the fund. For $250 dollars, anyone can share in that.

I don't have so much money and expertise that I can esentially gamble with more exotic and potentially profitable financial instruments (options etc). For me playing the market wouldn't be a whole lot different than roulette. So I protect myself with mutual funds, and stocks I happen to really like when I find I have a little unexpected money. Then I hold on to them for a long time. Until I don't like the enviroment anymore.

For instance, one of my mutual funds that's been a very solid performer over the past 10 years is centered in North America. If I'm pessemistic about that economy, I might use some rights I have to move equity in that to an Asian or European fund in the same family without incurring additional expenses.

It's generally best to sock away what you can afford. Eat out less, get the generic ice cream not Ben & Jerry's, drink less soda, wait for that must have DVD on sale for $8 a year after it's released. Then let that money quietly work for you. You'll live a little more spartan life, but in a few years you'll surprise yourself with how much you have.

For stocks, I'd avoid Microsoft for a little while unless you know something I don't ;). But generally they seem to be chasing other companies into other markets as they try to beat back anti-trust regulators intent on molesting their crown jewels. Now Pepsi there's a stock I like. They basically sell corn syrup, corn powder, and fake cheese poweder, probably made from corn, as a comparitively expensive lifestyle. They've been cooler than Coke since the mid 80s, and that shows no hint of changing. But a mutual fund is a better investment for you assuming you don't want to use the money for YEARS.
I see. Some of that went over my head a little, but I think I understand.

As for the saving, though, I already planned on doing that, and have always done so, essentially. (Especially when it comes to eating out. I get a free six bucks worth of food every shift I work at Wendy's anyway, so I actually have to spend less on food than one might think.)

What I was hoping for, though, was setting up a nestegg of sorts(or whatever term is appropriate) to allow me to move out of my parent's home and into a small house(I say small house as apartments are few and far inbetween in the rural area I have no intention of moving out of) of my own, preferably rented within the next year or so. How would I best accomplish that?

Short term, you might just want to work as much as you can, perhaps partly in an apprenticeship which will give you a valueable skill you can take with in time. Then put that money away in high yeild savings accounts (they typically require you to maintain a high minimum balance and have restricitions about taking money out) then start buying CDs. Like if your target to move out, or whatever you want the money for, is in 12 months. Buy Certificate of Deposits when you save up enough money that will come due near that time. Start off buying a 12 month CD, then a series of 6 month CDs until you've got less than 6 months left, then whatever other financial intrument the bank can offer you inbetween that gap. When the CD's start coming due, you can look at what the best options for the money is then. Just about any bank branch should be able to help you with this. Stocks and mutual funds over the short term, like a year, just aren't a reasonable option.

Another option is to start your own small business. A choice I've seen frequently is car detailing. It's something you can do with a piece of rolling luggage packed with the proper cleaning supplies and can be pretty lucrative. You drive to where someone wants to have their car detailed, pick up their keys, clean the holy hell out of it, return their keys, and a crazy clean car that smells like oranges. They give you a pretty decent chunk of change for generally busting your ass, probably in the hot sun, and a few of bucks in cleaning supplies. If that sounds like something you could do, I'd probably go to the local car dealership and beg/plead to get on there doing that to learn how it's done really well.

The nice thing about being your own boss is there's no middle man. Every penny you make is yours. But it's a lot harder to start out doing too. When you launch your enterprise no one knows who you are, so you have to convince people to take a chance on you, and then put enough into it that it's the best gamble they remember making.

Busting your ass for a year, even at minimum wage, you might be able to put enough away to look at being able to own property, something you have equity in, as opposed to making someone else richer by renting. All this depends on how much you can take, how rural we're talking and how plentiful job opportunities are.

Short term, you might just want to work as much as you can, perhaps partly in an apprenticeship which will give you a valueable skill you can take with in time. Then put that money away in high yeild savings accounts (they typically require you to maintain a high minimum balance and have restricitions about taking money out) then start buying CDs. Like if your target to move out, or whatever you want the money for, is in 12 months. Buy Certificate of Deposits when you save up enough money that will come due near that time. Start off buying a 12 month CD, then a series of 6 month CDs until you've got less than 6 months left, then whatever other financial intrument the bank can offer you inbetween that gap. When the CD's start coming due, you can look at what the best options for the money is then. Just about any bank branch should be able to help you with this. Stocks and mutual funds over the short term, like a year, just aren't a reasonable option.

Another option is to start your own small business. A choice I've seen frequently is car detailing. It's something you can do with a piece of rolling luggage packed with the proper cleaning supplies and can be pretty lucrative. You drive to where someone wants to have their car detailed, pick up their keys, clean the holy hell out of it, return their keys, and a crazy clean car that smells like oranges. They give you a pretty decent chunk of change for generally busting your ass, probably in the hot sun, and a few of bucks in cleaning supplies. If that sounds like something you could do, I'd probably go to the local car dealership and beg/plead to get on there doing that to learn how it's done really well.

The nice thing about being your own boss is there's no middle man. Every penny you make is yours. But it's a lot harder to start out doing too. When you launch your enterprise no one knows who you are, so you have to convince people to take a chance on you, and then put enough into it that it's the best gamble they remember making.

Busting your ass for a year, even at minimum wage, you might be able to put enough away to look at being able to own property, something you have equity in, as opposed to making someone else richer by renting. All this depends on how much you can take, how rural we're talking and how plentiful job opportunities are.
Okay then. Thank you for the advice.

Does anyone else have any other advice they would like to share?

Whoever makes analog to digital converter boxes.
http://www.fcc.gov/cgb/consumerfacts/digitaltv.html