I have 10k and I want to make money, what should i do?
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A small business and land are both more risky than the stock market.
Stocks come from high risk down to a certain thing.
Stocks with a high price, a stable price history, constantly increasing with some dips (huge dips ok as long as they come back up) from large companies that pay dividends are generally low risk.
Stocks in "hot" markets with wild histories that operate in volitile locations are risky. This would be oil and natural gas, where the price hops around like a rabbit on crystal meth.
Short term is usually risky and usually a loss. Don't get into stocks unless you want to go long term. An alternative is to buy a dividend paying stock, even an oil stock if you are just looking for dividends.
I am in your spot. Stocks I reccomend only if you go for long term, are young and are OK to go risky and if you have the time to follow up on the market. Otherwise go for land, land won't lose value as a building or buy an home or apartment that you know the area will be very likely to grow such as San Antonio, value here is only going up as many ppl are movong down here. I was going to do either of those but ended up investing on my Dad's company but my next investment will surely be one of those.
Whatever you do, be it stocks or land or renting properties, make sure you spend at LEAST 3 months making research and analysing the market.
Oh yeah, mexican stocks are very stable and have been doing pretty good
Open an E*Trade account and invest in ETFs (Exchange Traded Funds). They are pretty stable but can outperform the market if you time it right. I recommend three funds:
RYTNX, which is a fund that follows the S&P 500 with a multiplier of 2, meaning if the S&P goes up 1%, RYTNX goes up 2%. The reverse holds true as well. This is why you have to time your purchase when the market is a little low.
RYVYX follows the Nasdaq, also with a multiplier of 2.
JAOSX is a Janus Overseas Fund. The overseas funds have been performing well recently because of the strength of the Euro.
Keep in mind that you cannot trade these funds instantaneously as you can stocks. If you put in a buy order on Monday the purchase will be based on Tuesday's closing price and will execute on Wednesday, so you have to be able to guess when the market has reached short term peaks and valleys within a few days. In short, you should try to buy these funds in the next few days or weeks because the market is likely due for a short term correction. Then hold onto the fund as long as your finances allow. The RYTNX fund has earned me 30% over the past 15 months or so. Also, these funds and transactions have no fees which is nice.
Good luck! -Tim
There are pros and cons to everything that you might do with the money.
If you were in for the long haul, I would say invest in the stock market. You can either invest in ETF's or index funds (an index fund is similar to an ETF except it s a mutual fund offered by companies like Vanguard). These are safe investments. You could still lose money though. Don't invest in individual stocks without doing any research. Once you have done your research, then you can invest in individual stocks.
Personally, I would avoid investing in land unless you know something about the property that you are going to purchase or, if it is going to be your primary residence.
Starting a business would be a good idea as well since the rewards could be huge. Just don't go into it blindly.
I'm sure that you can find more information about any of your ideas by searching the internet and reading books about the subjects.
Starting your own business and buying land are both risky investments in this market, and you could lose your capital as opposed to maintaining your capital and making money. There is not a ready market for starting your own business. You can't sell out today and make money on something you started yesterday.
If you are looking for appreciation, I recommend the stock market-common stocks and common stock funds. If you are looking for income, you should consider preferred stocks, corporate bonds, government bonds, bond funds, investments whose capital invested remains stable and you earn interest on your investment. You can also do Ginnie Mae pass-through certificates and Fannie Mae securities (these are mortgage based securities that pay monthly principal and interest payments).
If you are in a high tax bracket and looking for tax breaks, consider municipal bonds and municipal bond funds. These provide income that is tax-free at the federal level and at the state level if you are a resident of the bond's state.
Just some ideas, depending on your possible investment objectives.
i suggest to invest in education first, you can do investing courses or just buy books.
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