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I am a teen, does anybody have any investment advice? |
I am a teen, does anybody have any investment advice? Open an IRA and start accumulating tax-free earnings. Contribute a small amount frequently, once a month, if you can afford it. Dont touch your pen or whatever you have!! Save your money until you have at least a few thousand and open up an IRA or brokerage account. Do it in your parents name, if necessary. Read a lot and study the stock market. Start with simple stock trades, mutual funds, and ETFs. Then when you are advanced you may consider getting into options but this is only for the most daring investment. Of course risk is what pays but it also taketh away. A Degree Plan : education. It will be a fraction of the time you'll sacrifice verses the life you'll waste chasing that dream without the $ to support it. savings accounts, short term would be 12 month cd, long term would be US savings bonds are a 10-12 year investment. I would not suggets an IRA because you cannot get it until you are in your 60's without paying taxes and fees. With a CD or Savings bonds you can reinvest it or use it if you need it. Excellent question! You have a long time horizon so the effect of interest compounding will work magic for you. Smart investors spend time in the market, so don't try to get into the bad habit of constantly managing your portfolio. That said... Simple... save some money...put it in some kind of bank account that pays interest. What you will start to see is things slowwwllly adding up...DO NOT WEAKEN/ DO NOT BE DISCOURAGED...keep saving a little, a little ,a little. If you ever get your hands on some money while you are young, put every dime you can into a Roth IRA.. You will be taxed a a low rate now. If you had $10,000 in one as a teenager, without paying in any more the rest of your life, you would be worth a million tax free at 65. How much investment and what is the time horizan |
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