Lux Investing
question on investing my money for college?
I am working this summer (odd jobs but making good money) and i'm hopeing to have 2,500 by august. I'm leaving for college next summer and need a lot more then that but i play volleyball year round (I'm going to play in college). Does anybody have some advice on how to invest my money wisely so that it will increase.
Public Comments
- Since you will be busy with college and volleyball and will not need the $2500 to pay for college expenses, you should be looking at an indexed mutual fund. Put the $2500 in any S&P500 indexed mutual fund and leave it there. Over time you should average about 8-10% return on your money, but don't expect this to happen overnight. If you will be needing then money in the next year or 2 for college expenses, then you should put it in a 1 year CD that pays 5-5.5% ---
- You will be leaving for college in about 14 months. That time horizon is much too short to invest in equities. Your best bet is to search for the best CD rates that you can fiind for a 12 month CD. I suspect that will be around 5.1%. After 12 months your $2500 should be worth $2627.50 (at 5.10%). Investments in stocks or bonds is risky for such a short time period...they go up but they also go down and no one can predict with certainty which will occur by next fall.
- Open a brokerage account at Zecco and invest in Apple and Toyota.
- If you put that money anywhere other than in a CD, you risk loosing some of it, maybe a lot of it. If you follow the advice you have received about investing in stocks and index funds there is a good deal of risk. Less with an index fund than with individual stocks but the risk is there. Can you afford to loose 20% of that money? 12 months is too short a time to invest in equity investments unless you are prepared to suffer a loss.
- Please focus your time on your college studies.
