Never invested before. With the economy the way it is, what should I do to invest for retirement? I'm 24.?

I'm thinking of a balanced fund or asset allocation fund to invest in a Roth IRA. But I've been told at this point, I should stick to something less risky...like a money market fund. Let the money grow a little and when the economy is more stable transfer that money into my balanced fund.

Since you are not going to be retiring any time soon, you should definitely put a majority of your money into the stock market. At your age I would put 80% of the money you are going to be investing into the stock market. At this point in your life, you can afford to take this much risk. Historically, the stock market yields about 11% per year. This is the way to go if you want to retire very comfortably. You should definitely invest in a company retirement plan if you have the option to do so. I would go with a mutual fund that is geared towards growth. This will be a little risky, but, like I said earlier, you can afford this much risk at 24 years old. You should put enough money in this retirement plan to get a full company match, if they do this at your workplace. Any money after that you should invest on your own. 20% of your investment income should go into a money market fund, or some other kind of investment option that can be readily accessed in an emergency.

Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan.

Go to : low-cost-stock-recommendations

.com

Click on the "DRIP's" Button on the Navigation Bar

These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.

They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor.

If you decide you are interested in DRIP Plans, click on the advertisement on the same page "$4 to purchase stocks". This will answer your next question, which is, How do I get started? and what is the least expensive way to get started?

I strongly recommend looking into it. They are great plans.

Good Luck

You should learn to trade the stock market. Many professional traders can make 2 to 3 did-git returns on their money year after year.
All you have to do is learn a few simple rules and develop a system.
This site will teach you a lot and help you develop your own system.

You have decades to go before retirement, so your IRA investment should be aggressive. A growth asset allocation or target retirement date fund would be a good starter.

No, at this point, now is the exact time to be getting into the market. The United States is not going to go out of business. (Buy low, sell high, not the opposite.) The market may continue to decline for awhile, but don't worry about timing the market. I like Oakmark Equity and Income for an asset allocation fund. Not flashy, but holds up well in recessions. Or, consider a target retirement fund.

the best thing that you can invest in right now is financial education. people like russel g are selling products and have something to gain by telling you what they do. read books on investing. i would start with rich dad/ poor dad by kiosaki and by listening to jim puplava at fincancialsense.com. get educated so that you know the difference between a sales pitch and a real opportunity.

The market has dropped quite a bit and is now rebounding (going up!). You could invest in something that will give you a higher return for now. If the market goes into another nosediving act, you could quickly transfer your money into a money market fund to preserve your capital.

Hi,

I suggest you get on a site that is designed for investment questions and frequented by other investors and experts.
moneyrec.com is free to users and spam free- a serious investment site with very knowledgeable people.
morningstar has a free board, but it is a pay site for other information.
Good luck to you.

Bunny

Finding a good bank or business to invest in is your best bet. Something secure, which guaranteed growth. Even if the company is abroad. I've been doing alot of research into investment, cause i want to make some money for retirement too.

I've thought about CDs and Money market. they are both stable. But I've also looked into financial investment businesses. Which I found gives a higher yield. Like http://www.e9u.net