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Originally Posted by Perfectlap
^You don't need money to move money IF and only IF you start young. A small amount ($3,500) given enough time to compound can grow into a huge sum if you put it into the right type of mutual fund. Since you are youngster born in the 80's you can take on more risk, start with growth funds (small and medium cap), and maybe more focused sector specific funds like Financial ETFs some of which are up 15% already this year Vanguard (known for low fees). Just call them up, and ask to speak with a rep they'll walk you right through it.
As far as risk, I don't think you are risking any less by plunking down thousands of dollars into a car you KNOW FOR A FACT will only lose value. That car will cost you a fortune in missed oppourtunities down the line.
Over time the profit or gain from your investment will buy additional shares. Once this momentum really gets going you'll find out that only a small part of that huge bankroll was the cash you initially put in. If you squirell away a measley 7-15% each week or each month then you'll really be in business. I can't tell you how many 30 year olds I know who have never bought a share of a stock, mutual fund, anything. And the older folks boy are they in bad shape. USA today once had a poll that said fewer than 3 out of 100 seniors could write a check for $600.
I'd recommend some books to you but you're eyes would probably just glaze over because its all very dry and technical. Next time your at Barnes & Noble flip through the Dave Ramsey book Total Money Make Over. He's not really market technician but he really brings home the point on saving through mutual funds. Flip to his testimonials from the people under 30 who started investing early. Skip the tesimonials from the older folks because I don't think you'll indentify with them and their foreclosures and bankruptcies. But these younger people were in good shape to be millionaires by maximizing the time advantage of their money. |
the markets are very unpredictable and timing is everything. Who is to say that in our life time we will enjoy the progress that your generation did??? case in point? ask anyone who wanted to retire this time last year lol they lost 50% if their IRA value in less than 12 months.