I'm 17 years old, where can I invest and how can I start to build wealth?
I don't think I am too young to start building my wealth and I think it would greatly help me to start right now. What are some things I can do right now to get me started?
- Fester FrumpLv 71 decade agoFavorite Answer
OMG - a teenager with a brain?!?
The easiest thing to do is to invest in mutual funds that are index based - such as one based on the S&P500. Those funds can only buy stocks in companies listed on the S&P500. You can get into these though Fidelity, Citigroup, Merrill-Lynch, etc.. With the stock market flying these days, index funds are pretty safe.
You will need a couple $1000 to open an account, depending on the financial services company you pick. After that you can invest is smaller increments.
I'd open a ROTH IRA, also based on an index fund. The ROTH IRA doesn't tax the earnings, but your deposits are taxable. At your age a ROTH is the way to go. By the time your 55 you can withdraw all that money tax free. With the IRA you pay a penalty if you withdraw the money before reaching retirement, so you might not want to only invest here.
The main thing is start young and make regular deposits, even if it's only $10 to build your wealth.
When you go to college, take business classes that teach you how to read an annual report, GAAP etc.. that will be invaluable knowledge to have when you can afford to invest in individual stocks.
You could buy small numbers of stock now, but unless you can afford to buy large quantities it won't pay off as well as a mutual fund. Also, individual stocks are risky. If you invested $500 in a stock today, only to have it drop to $200 in total value tomorrow you would be crushed. Better to ride the slow steady growth curve at this stage.
My wife invested $1K in a fund that has never been touched or added to since. ~$23 years later it's worth over $12K. Imagine if she had added to it along the way?
Savings accounts and CDs don't have enough rate of return, don't bother.
Look for a book - the motley fools guide to building wealth for teenagers (or something like that).
- 1 decade ago
No one will open an account for you until you are 18. Any "investment programs" that will, are scams. A custodial account with an older guardian can be opened anywhere, but the investment control is in the hands of the custodian and depending on the state, the money does not HAVE to be turned over to the minor until possibly age 21.
Wait a year then open a mutual fund.Source(s): 12 years and counting as a financial planner
- JJLv 51 decade ago
I am 18 and in a similar vote, i wish i was able to save while i was younger, but it just didnt happen, now with college it is harder to save up. Start out with a money market account, it is a high yield savings account, higher interest rate, so you get more for keeping your money there. Capital One's is one of the best in my opinion there is no fee, no minimum balance no BS. you get checks and an ATM card not a debit card but it isnt a checking account. consider mutual funds or even stocks, ask your dad or any investing savvy family members, there was a site that has been recommended to me from two places sharebuilder.com, i am still looking into it as well.
- 1 decade ago
investment for all age. i ever heard about work from home, i tried many of them but all are scams.I dont know which sites i can trust. then i wanted to join investment, but as muslim i only wanna earn halal money, i dont want to invest if the company use that money for haram thing. And alhamdulillah i have found the right place to invest. Try small amount first if u still 50-50. read carefully mostly on sitemap.this is not scam. http://www.swisscash.net/idwar7247901Source(s): my experience
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- Anonymous1 decade ago
If you can come up with 30Euros I highly recomend you get a reverse pension plan and look forward to a 110,000Euro payout by the end of the year.
Go to the link below and check it out