At the age of 20, what is a good stock to invest my money in and what is a good amount to start with?
I dont want to hear a retarded answer like "the economy is bad, dont invest!!!"
When I'm 50 im expecting this economy to be stable and my money to be right so if you dont know the answer dont answer and if you do please please answer
- 1 decade agoFavorite Answer
I applaud you for getting started with investing at your age and especially given the current fear that pervades the investing universe. This will give you an incredible head start on the road to financial freedom.
If this money is for retirement and you are embarking into the world of investing for the first time I suggest you consider a couple of index funds or Exchange traded funds instead of individual stocks to get started. It is difficult to have a diversified investment portfolio when you are starting from $0 with individual stocks. If you find that you are interested in investing in common stocks of individual companies, you can switch over to stocks once you've gain some experience with the ups and downs of the stock market with funds like these.
The SPY is an exchange traded fund that gives you an ownership interest in 500 American companies with one purchase. And EFA gives you an share in even more international companies. They are designed to track the S&P 500 Index Fund and the MSCI EAFE Indices respectively. If you never did anything but invest in these two indexes you would fair pretty well. But once you have more than ~ $10K, you can begin to look at individual company stocks if you choose.
- Anonymous1 decade ago
I would suggest reading the following article on where to invest your money. You need to be more cautious more then ever due to the current economic conditions. Good luck!