Lux Investing

My parents gave me $500 to invest. What is the best type of investment to get a high long term yield?

Public Comments

1. An IRA account that you cannot touch until you are age 60.
2. stock will but it is risky - a CD is a safer way of doing it
3. You can place up to $5,000 a year in a Roth IRA. In this case long term would be until you reach 59-1/2 years old. The good part is there will be no federal tax when it is drawn out at that age. When you sign up for a Roth IRA choose a mutual fund for long term investments.
4. Unless you also had a job that paid $500, you can't open an IRA or a ROTH. As for investments, nothing at the moment. My savings account is paying .02% (yes, there is a decimal place before the 0). New EE bonds are paying .7% New I bonds are paying ZERO. Citibank is offering online CDs for 1 year at 2.25%.
5. History has shown the highest yielding long term investment is common stocks. During the past 80 years or so, they have returned around 10%-11% annualized. As to which stocks to buy - whole books have been written on the subject. Try the Dummies Guide to the Stock Market or to Investing, or Peter Lynch's books.
6. here are some ideas
7. but your money in a stock with a high-safe yield. I would suggest BP, or ATT (T) and leave it alone for many years If you go with a CD right now you aren't going to get good returns This will make you the most money hands down
8. With only $500, if you're not planning on adding to it, you would be best in a savings account.
9. AIG was be a best stock to invest if you plan to invest for a long term, because AIG is too big to fail and beside AIG no longer need government bailout money. if you invest in AIG are now you returning profit is 10-30 times in 3-5 years.