Young Investor

nubs101 · #1 (**permalink**) 07-15-2010, 12:41 AM

Hey everyone I have been reading around trying to learn some things and am looking for some helpful advice. First I am 20 years old and have just started investing in 401k. I am going to school right now so only making about 11k a year putting away 9% and my job matches 4%. Also buying some stock through the company. My question is I have about $8200 saved up and feel comfortable investing about $4500. My goal is in 3-5 years I will hopefully have a job as a Police Officer and want to be able to afford a down payment on a house. Is there any ways that aren't to risky that I can invest that $4500 in ? I was thinking maybe a 3 year CD. All tips are appreciated thank you

C9Consulting · #2 (**permalink**) 07-16-2010, 11:36 AM

High yield money market, Bonds (since interest rates are where they are), mutual funds that invest conservatively, commercial paper, forex (on the yen side). Those are about as conservative as you can get.

redgsr · #3 (**permalink**) 07-18-2010, 04:21 PM

I would let your money sit in high interest savings accounts and CD's until you have a good grasp on investing. When I was your age I tried investing with little knowledge and pretty much lost it all.

TurfToe · #4 (**permalink**) 07-18-2010, 06:27 PM

Well I wouldnt put it in a mutal fund or 401k. Youll be better off burning your money. CDs, Roths, savings, or market accounts are low risk but your return on investment will be very low. If you want it to grow then I would suggest learning how to manage your money in the stock market. All you would need to know is a few basics techniques. You could buy/short a stock and hold it for a few months then take your profits when the time is right. You can do this over and over again when the set up is there. All you would need to know is how to read 2 charts. I could give you a few stocks that are ready to buy/short if you wanted to go this route.

nubs101 · #5 (**permalink**) 07-19-2010, 01:46 AM

Thanks for the advice so far everyone. Turftoe if you have any suggestions on stocks that may be worth taking a look at please share. Thanks again

TurfToe · #6 (**permalink**) 07-20-2010, 09:05 PM

The market is almost in a position were you could get in with several stocks if you wanted to hold them for 1 to 3 months. My guess would be within 2 weeks or so. I want to get you in the best possible spot so Ill let you know the stocks and when we get close to that area.

nubs101 · #7 (**permalink**) 07-20-2010, 11:40 PM

Alright Turf Thanks for the help. Im trying my best to keep on reading.

RichS · #8 (**permalink**) 02-24-2011, 05:05 PM

When do you want to buy a house? You don't want to tie up your money and you don't won't to lose any either. Stocks are the same as going to the casino and rolling the dice. Nobody can guarantee you that you will make or have any money left if you invest in stocks. The shorter the time that you will need the money for a down payment on a home the more conservative you will have to be.

RichS CFP(r)
www.insimplelanguage.com

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