Age 19, looking to invest

MYNAMEIZGREG · #1 08-01-2006, 06:27 PM

Hello all,

I am 19 years old and have the daunting task of investing my money. I currently have 72k, but obviously I am not looking to invest all of that.

I am going to invest 20k in something that my father is recommending so that is out of the question as of now.

Let's set aside 7k for short term expenses (Too much? I go to a college and don't really pay for anything).

For poker I would like to have 30k set aside.

That leaves a measly 15k left. However, I make about 30-35k/month, so I want to start setting everything up now.

I would like to put the bulk of it for this month in a savings account, but which one is the best. I have been searching and Emigrant gives 5.15% interest a year? Are there any stipulations. Is that the account that you can't take money out of until 59 1/2?

Then, what should I be looking at in terms of stocks? Can I just really buy the DOW S&P and the Q's and expect 8-10% ROI a year? What about mutual funds?

geormiet · #2 08-01-2006, 08:35 PM

I think emigrant gives you 5%, and your money is 100% liquid. No fees for withdrawals and no minimums. You can't go wrong by keeping all your money in there while you decide on something.

geormiet · #3 08-01-2006, 08:37 PM

The account you can't take money out of until you are 59 1/2 is an IRA.

This is also a good idea, if you start it at 19 you will be way way ahead of everyone else. you can put up to $4000 per year, and if you get a roth IRA it will be sheltered from tax when you withdraw it.

www.vanguard.com is a good place to go for roth IRA.

THAY3R · #4 08-02-2006, 12:42 AM

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I currently have 72k... I make about 30-35k/month

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ilikeaces86_ · #5 08-02-2006, 01:00 AM

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I currently have 72k... I make about 30-35k/month

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WTF if you make 30k a month you should be able to put together 100k to invest with in no time.

Work4Fish420 · #6 08-02-2006, 12:29 PM

I'm a realtor and land in Florida has come down about 30-40% in a lot of areas. It's definately a buyers' market now, and people are giving away some of these quarter acre buildable lots that the builders and investors have been flipping to build homes on. There is way too much inventory now which is why prices have come down, and not much been selling the past year, but starting to pick up a bit end of summer. There are signs of a bottom nearby. These 1/4 lots that are, for example, back down to $35k in Palm Bay, FL.....ran up from about $16k 3-4 years ago to up 55-60k ...just from 2004-2005. I don't think they are going back to $16k based on surrounding areas, and since that area is just a year or two behind where I live in Port St. Lucie (lots are $75k here and were up to $100+ last year), I have a feeling the lots 45 minuntes north which are 35-40k can run to 70-75k when the buyers return. I think if you can bottom fish in some hot areas, I'd put some money into some of these lots. I know...it's not a guaranteed 5%, but in a hot market these lots move anywhere from 50-100% in a year, and you can mortgage them with 20-25% down to increase your ROI%. I really don't expect the market to go crazy like before, but I can easily see these going up 10-20% (which is a conservative estimate) compiled over 3-5 years that could be a good return. Rental property may also be something to look in, but I've never really cared too much for that as vacant land is less headaches.

Besides Florida, which ran up a bit too fast and now correcting, I am going to start looking into other markets like the Carolinas and Texas.

But....if you really want to play it safe, I'd be sticking with the CDs and municipal bonds. Liquid CDs are probably the best since you can withdraw whenver. In these time, cash is truly KING. If you're into stocks, check out the homebuilders like DHI, LEN, CTX, maybe KBH. These are the biggest in the business and had a good run before they started tanking. PEs are down to 4 and change so unless they go belly-up they should be flooring around here. SOon as market turns around and they get inventory problems under control (which they are)....these should be one of the better stocks again.

NoTalent · #7 08-02-2006, 01:28 PM

I recommend doing what Work4Fish420 says--invest it all in the flordia real estate market.

Work4Fish420 · #8 08-02-2006, 04:58 PM

NO WAY INVEST IT ALL IN FLORIDA. That is still kinda risky right now. That is what I've been vested in the last few years and is scary with the oversupply right now. I advice a good mix between land and other stuff. My short term goal is to have about 1/3 invested in FL real estate, 1/3 liquid tools (like CD/Cash, mutual, maybe a few stocks to trade, etc.) The rest remainding 33% will be .....well....poker, but don't think the fiance will like that too much [img]/images/graemlins/smile.gif[/img]

koffeliane · #9 08-03-2006, 03:44 PM

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NO WAY INVEST IT ALL IN FLORIDA. That is still kinda risky right now. That is what I've been vested in the last few years and is scary with the oversupply right now. I advice a good mix between land and other stuff. My short term goal is to have about 1/3 invested in FL real estate, 1/3 liquid tools (like CD/Cash, mutual, maybe a few stocks to trade, etc.) The rest remainding 33% will be .....well....poker, but don't think the fiance will like that too much [img]/images/graemlins/smile.gif[/img]

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Could you point us to some relevant sitse where lots are for sale?

MYNAMEIZGREG · #10 08-03-2006, 05:23 PM

Thanks for the responses. Only recently have I been playing enough/good enough to make this kind of money/month, but it will be standard.

I am going to look into Emigrant, but my Dad gets P plus 1 on withdraw-at-any time loans with his company so I might put my money there for now since P=8.

I am a little hesitant to start investing in real estate in other states (I don't know enough about it and it looks like a shot in the dark due to my lack of knowledge). Is there any way you could provide more relevant links Work4Fish? Thanks for the responses.