College student looking to invest

Discussion in 'Investing For Beginners' started by cheerio, Apr 1, 2005.

  1. cheerio

    cheerio Member Original Member

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    I currently have a CD, savings bonds, and a small amount in gold. Right now I have about $1500 to invest. My current job does not offer an IRA. I am looking at investing some money and might need some of it bakc in about 2-5 years. I am also looking at investing a my retirement early also. Does anyone have any ideas? Thanks
     
  2. noksagt

    noksagt Member Original Member

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    I believe you mean your current job doesn't offer a 401(k) (or 403(b) or other company retirement plans). The I in IRA stands for INDIVIDUAL. Anyone with income may start their own IRA through a brokerage firm. And this is precisely what I'd suggest you do: open a Roth IRA at a brokerage of your choice. Preferraly before April 15, as this could count to your 2004 contribution & if you run into more money, you'd be able to contribute $4000 towards your 2005 contribution (from now until April 15 of next year).
     
  3. signupmoney

    signupmoney Member Original Member

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    Wrong again! If he "NEEDS" the money in 2-5 years, opening a retirement plan is not the way to go, especially since he is a college student (assuming a youg one) and will need to pay "early withdrawl" penalties if withdrawing money prior to age 59 1/2.
     
  4. cheerio

    cheerio Member Original Member

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    I am looking at investing with two times that I will need the moeny. I am a senior in college. I am looking for a return on something in 2-5 years and I am also looking at investing for my retirement. Any sugestions besides opening and IRA?


     
  5. noksagt

    noksagt Member Original Member

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    I don't know why you keep saying "wrong agian."

    Contributions may be withdrawn from a ROTH IRA penalty free. So no, if he opens a ROTH, he will not have to wait.

    I think it is ideal, as he might decide he DOES want to keep it as a retirement vehicle or as an investment to use as the down payment on his first home.

    However, perhaps you have alternative suggestions?

    I personally think the ROTH is the best bet--in addition to remaining accessible, it won't create tax liability or need to be reported on the FAFSA, so won't harm his chance of getting financial aid or need-based rewards if he ends up in college longer (for example, many grad schools require you to submit a FAFSA to T.A.).

    If OP has some OTHER reasons not to want toreluctant to invest in a ROTH, a high yield CD or bond fund would be reasonably safe and convenient over this time period.
     
  6. bigdave

    bigdave Member Original Member

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    I agree completely and there is no penalty in IRA as long as you don't withdrawl the interest ... :) so you can withdrawl your initial investment at any time. I would say go with IRA if you are working :)
     
  7. ItZme

    ItZme New Member Original Member

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    Wow... that's something. It's nice to think of investment and early retirement. To be honest, I'm a total... money output machine. I rarely save any of my monthly income. :(. If i do... i used... sharebuilders.com. You should try it. I think it works fine.

    Cheers
     
  8. bigdave

    bigdave Member Original Member

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    You could get a 2 year CD give you nice return and access in 2 years but IRA is good way to go except you cant touch the interest without penalty.
     
  9. jstep

    jstep Member Original Member

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    Invest in the right stocks, Its like a big game though if your not careful

    Depends what your strengths are

    What do you know about
     
  10. awwitsbobby

    awwitsbobby New Member Original Member

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    I'm not sure if it has been mentioned in this forum, but if you want to trade stocks, and seeing as you are just starting out. Commissions even at discount brokers will eat away a big % of what you investing. I signed up for ex24.com for some sign up bonus stuff, and actually found their business model very good. They allow you to buy stocks and pay commission per stock. Its a very low commission fee. You should take a look, at the site sometime.
     
  11. Dave Rathbun

    Dave Rathbun Original Creator Original Member

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    Commissions are often mentioned as a concern, but I will submit this idea... if you're just starting out, and have a limited budget, you won't be (or should not be, IMHO) day trading. If you're not day trading, then commissions are less of a concern.

    Make 30 trades a day? Then the difference between $5 and $8 commissions adds up. Make 2 trades a year? Then there are probably other more important considerations to consider when finding a broker. Just something else to think about. 8)
     
  12. fredfred

    fredfred New Member Original Member

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    i m also student and looking for invest aprox 100$
     
  13. faithmay

    faithmay New Member Original Member

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