Anonymous
Anonymous asked in Business & FinanceInvesting · 2 months ago

18 year old needing investment advice? Please?

I have saved up $1,000 and I have not had a job yet, so this is all the money I have. I would like to know if I should rather invest it in an index/mutual fund? Or should I start a Roth IRA? Please answer seriously, this is not a troll question. I am just asking anonymously for safety. 

12 Answers

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    2 months ago

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  • 2 months ago

    You need to start with an emergency savings account before you start in with an investment plan.  Also you need earned income to fund a Roth IRA.   What and how you invest depends on goals you are setting. If your net worth is $1,000 you probably want to save that for school expenses at this point.  Funding a Roth IRA early can give you a huge leg up saving for retirement but you have tons of expenses before retirement to consider, school/education, car, home down payment, etc. 

  • 2 months ago

    I would allocate some of that money to a government bond at the moment or an index fund (Bonds are usually safer). However keep some in reserve in case you need it for future bills.

    Money depreciates at approx 3%per year, so your $1000 dollars will be worth around $970 this time net year.I use Vanguard for investing in Bonds and Funds (I'm based in the UK though), but when I use it you can invest less than $1000, you don't need to have huge sums of money.Last week I made a 3.2% return on my investing, this week I lost 3.5% (Overall it has been growing, but just be aware that your investing can go both up or down.A good piece of advice is when the market is low (say the S&P or FTSE100), that would be a better time to buy instead of when it is rising.

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  • kswck2
    Lv 7
    2 months ago

    ROTH IRA's are restricted to money you actually Earn. If no job, you cannot open a ROTH. 

    As for your $1,000. At 17 you would be best off just sticking it in a bank and holding on to it-maybe increase it when you can. Opening a brokerage account is good too, but they may charge a brokerage fee to trade into a mutual fund-although many brokerage accounts waive Some or all fees in Certain mutual funds-you have to check with them. 

    SOME-not all, have a minimum to buy into the fund-like $2,500-although if you look hard enough, you may be able to find some that only require $1,000-but it is a matter of whether or not you Want that particular fund. 

    So just do your homework first. 

  • 2 months ago

    No job, no IRA. {You do not need one at your age, anyway. (Forget those math geniuses that talk about getting a million bucks in the future.)}  Forget investing. Just keep the money in a bank account, and pay your bills as they come due. When you are working full-time and covering all of your responsibilities (including building up an emergency fund) then you can consider retirement plans and investing (and the best thing to do is to buy a house. In 30 years my house went from $70,000 to $350,000 ... and the upkeep (taxes, insurance, new appliances, roof) is only an average of $500 a month ... instead of $1,500 p&i + $500).

  • Eva
    Lv 7
    2 months ago

    You can't have an IRA unless you have earned income (a job). You shouldn't invest savings that you might need in an emergency.

  • 2 months ago

    1. You can't invest in a Roth or any kind of IRA because you don't have earned income.

    2. There are plenty of mutual funds (including the good ones) that you can invest starting at $100.

    -- but with $1000 being the only money you have .... i don't think investing is in your cards yet.

  • 2 months ago

    You don't have enough for a mutual fund.  Most start at $2,500 and the better ones start at $5,000.  You can buy gold with it or you can put it into a short term CD at your bank.  You  will have to decide, based on whether you might need it within the next couple of years or whether you want to invest it long term.

  • Anonymous
    2 months ago

    s&p 500 index fund. Roth IRA requires earned income in the year you start it.

    Good thing you posted anonymously. We regularly kill people who do not. LOL

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