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Looking to Invest for the Future?

Hi,

I am a young mother, wife, and college student and I am very interested in investing in stocks for not only my future but the future of my daughter. The companies I want to choose to start investing in are the ones I grew up with or that I have personal interest in such as Disney, an African American business, and maybe ones that have CEO's or participation in the importance of education or strength in feminism. I would like to start off buying 3 shares (I am not savvy in the stock market vocab yet) then invest every now and then as time goes by. Any suggestions?

Thank you for taking the time to read &/or respond!

5 Answers

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  • 5 years ago
    Favorite Answer

    I tend to repeat myself somewhat in answering these types of questions, but in your case I think my advice will be even more pertinent. You have a real advantage in the fact that you are young and that you are looking at a long-term perspective, particularly your young daughter's future. The formula I believe in and practice is this: look for companies that have a history of raising their dividends every year, buying back shares, with good revenue growth and earning per share that is larger (preferably significantly larger) than the dividend payment. Examples could include Walmart and Proctor and Gamble. Over time, the return you get on the dividends will amount to a higher percentage of your original investment, provided that you hold the shares without selling for years and years. With the increases in dividend payments, even year two will technically bring you a higher return than year one; but the value, of course, is watching it grow over time. Different stocks sell at different prices, so saying that you're going to buy three or four shares is a little presumptuous at this point. You need to decide how much you are setting aside for your first investment and divide that amount by the price per share of whichever company you choose to invest in. Every time you buy or sell any investment through a brokerage account, there is a transaction fee. I recommend setting aside six months to a year's worth of savings and investing it at once; you don't want to get stuck in the trading game and end up having transaction fees become a significant percentage of your overall investment. Also, I wouldn't recommend getting overly concerned about investing for political reasons. There are certain companies I wouldn't invest in such as McDonald's and Coca-Cola because their whole business is selling people garbage, but that is about as far as I let my political concerns go when it comes to investing. Hope this helps.

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  • Dan
    Lv 7
    5 years ago

    Open an IRA now. Put the money in a target date fund and leave it there until you retire.

    Waiting a few years will cost you.

    Don't start trying to pick stocks. Even the experts can't reliably beat the market. See my source.

    Disney seems like a great idea to you because you like the idea of the company, and it has been going up in the past 5 years. But someone who owned it from 1995 (when it also started going up) to 2010 would have zero growth to show for it in 15 years.

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  • 5 years ago

    Buy a house in a good neighborhood with good schools. THAT will help your daughter's future the most. And do not pick a stock based on a skin color or political ideology alone.

    But as a college student, if you have extra money, your husband must be doing very well.

    3 shares is nothing. That is like buying 3 tickets to a ball game. The concession stand (fees) will kill you.

    • Alexius5 years agoReport

      You seem to assume as if I would have my family live in a bad neighborhood because we are young.
      I don't know much about the market that's why I was hoping to learn from people who have more knowledge.
      Thanks for your input though.

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  • Jake
    Lv 7
    5 years ago

    It;s probably safer to invest in some managed fund, earning are lower than playing individual stocks but they tend to be safer when the market is unstable, these are the sort of funds that insurance companies out their money into.

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  • Rick B
    Lv 7
    5 years ago

    You would be foolish to buy individual stocks (especially those small amounts). Guy quality mutual funds or ETFs instead. Pick one that contains the companies you like.

    What is this for? If retirement, put it in an IRA or 401(k). If for college, put it in a 529 fund.

    • Alexius5 years agoReport

      I've always had an interest in the stock market but I'm a bit cautious about diving in. Growing up, I've learned to invest &save money; I'm trying to make a smart investment for the future. I'll prob look into the IRA in a few years. I will do research on mutual funds, 529 fund, &ETF's also. Thanks!

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