Anonymous
Anonymous asked in Business & FinanceInvesting · 8 years ago

what should i invest in?

I have $50k. I want to make an investment but not quite sure what i could/should invest in. any ideas? i am self employed. i dont have a huge business..its kind of just like a home thing. i sell designer clothing, bags, shoes etc. i make enough to take care of myself day to day but thinking long term, i want to buy a house, be able to put my kid in private school and just live comfortable and stable. im only 19 but i need to really think about my future because i have a child... any ideas on investments would be appreciated (the 50k came from my dad. he came into my life 18 years late and tried to make up for it with money for school but i have a scholarship sooooo)

Update:

I thought about a house, but i wouldnt qualify for any type of loan right now because I dont have much credit history established yet. i make as little as $1200 a month to as much as $2200 it depends on sales and i have expenses that come out of that.

2 Answers

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  • xcnico
    Lv 4
    8 years ago
    Favorite Answer

    start putting away money for college for your kid...even if it's only like $50-$100 a month

    You typically need twenty percent down if you want to buy a home... so that would mean you could buy a $250,000 house. That is unless you qualify for a lower down payment. And you want an asset where you could easily take out your money in case you need it. So, I would avoid bonds or CDs.

    I would put a substantial amount away in a money market account or mutual fund. Those are relatively safe investments that will give you more return than even a premier savings account.

    Source(s): Finance Graduate. Don't invest in ETFs...especially foreign ones.
  • 8 years ago

    You should consider seeking the advise of a financial adviser.

    $50k is a lot of money to trust to some online advice. Congratulations on saving that money to invest! It is for investing only right? Or is it your savings? Getting the two confused can be very dangerous!

    You should begin a budget if you have not already and see if any of that $50k should be adding to your income to help out with costs of life. Once you have established that you should look at making sure you have a rainy day fund. Save between 3-8 months of savings for the event of losing a job. You should consider costs of rent, taxes, transportation, groceries, utilities, etc. etc.

    Once you have done that you could consider investing. It is an awesome gift to receive and would make a great amount of money to invest, getting you in the game. However it would be very disappointing to lose it, even though it was a gift.

    When talking with an adviser or educating yourself (investing books) I would focus on ETFs. They are probably the best way for someone with little to no experience in investing, what the returns, homework, costs and emotions are like. Believe it or not, just buying stocks of your favorite or hot companies can be a roller coaster of emotions not to mention huge potential loses.

    ETFs cover a basket of stocks that mimic the market so that your money will perform on the given market that it is tracking like the S&P500 or the Dow Jones for examples. Like stocks these tend to go up and down each day but if one of the 500 falls out of place, it's only one. Whereas if you just bought that one stock you would be in trouble.

    Another benefit of ETF's is that a lot brokers are now making them available commission free. Commissions are what kill a lot of investors because a $5-7 charge here or there is forgotten but it adds up.

    You have many options of opening accounts and I suggest you talk that over with an adviser. It's likely something like a 401k would be great with this money and perhaps something for a college savings plan.

    Source(s): For more information on ETFs and their costs: http://youthfulinvestor.com/jumpstart-guide-ready-... An awesome reference for all beginning investors is: http://investopedia.com/ Just don't get caught up in all the hype.
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