May
Getting My Feet Wet in the Market
Financial Advisers always tell people to start investing at a young age. Why? Because the younger you are the more time you have. Time is one of the most crucial variables in investing. The more time you have, the more money you can make.
Since I’m only 24, I still have plenty of time till ‘retirement’. According to this investment calculator, if I start out with a $500 account and invest $500/mo for 36 years at a 10% annual return, I’ll have $2.1 million by the time I’m 60 years old. A 15% annual return would give me $8.6 million by the time I’m 60.
Now 10-15% annual rate of returns are pretty generous, but if you invest wisely you can achieve those numbers. Berkshire Hathaway (BRK.A) has gone up 2100% in the last 15 years and is now worth $108,000 per share. I can’t imagine how many investors became millionaires riding Berkshire.
So I set up a small Scottrade account to test the waters. Scottrade requires a minimum $500 deposit. I purchased close to 40 shares of varying stocks yesterday morning. I’m not going to share with you my stock picks, because I’m not a professional investor and don’t want someone to read this and bet their life savings on something and then lose it all.
I’m investing somewhat aggressive right now. Like I said above, I have time. As you grow older, you should be more conservative. But right now I could blow the $500 and it’s not going to kill me. Blowing $500,000 when you’re 45 years old might.
I plan to take a portion of my online earnings every month and putting it into my market account. Probably a couple hundred a month. This isn’t a get rich quick scheme. This isn’t day trading. I’m investing for my future and will be hold stocks for years.
It’s exciting to be researching and investing on my own. I have a 401k at work with mutual funds in it, but you don’t really do much with them. You just let it sit. The stock market is fun, but you have to realize it’s not a game and there are risks. This is real money.
If you want to try out the market with play money, I suggest heading over to Investopedia. They have a great simulator for free.
Bottom line you’re a smart guy. Good call w/ the investing. Keep us informed how the investing is going for ya.
Very good job investing. Fortunately for me, I have six years on you, so I have those six years to invest. I opened a CD about a month and a half ago just because there was no reason for me to have three grand lying around. However, like you, I intend on taking a portion of my income on the net (once there actually is some) and investing it. Very smart move, David. Now…What to do with my Intel stock. Hmm…
I have done a bit of investing, it is fun, and yet at the same time can really take over your time by just constantly checking the market. Best of luck, the stock market is a tough beast to grab a hold of.
Starting early is great, just be careful with doing stocks yourself. Try to get some into a more stable and managed avenue such as a 401K also.
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