How can a young person invest $ ?

[JJHog]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

[TulsaHogFan]

Pm me, I might be able to offer some solutions.

[bdutt]

Don't go money market until you have at least $2500. That's usually the minimum balance you have to have to avoid fees.

[311Hog]

roth IRA is a retirement account.

Also if i was making suggestions i would say save up for 3 months until you get 1,000 then go invest in a 6 to 12 month certified deposit or CD.  Since you say its long term and if you can seriously put 1,000 in the bank and not touch it i would keep doing this rolling over the interest every time and adding to it what you have saved each month.

For example 1,000 in after 6 months i believe 6 months is the shortest time you can get maybe 3 months.  You add to it all the money you have saved or make another CD.

I believe places like TIAA CREF can help with getting investments started for kids college funds etc.

[GorillaJMonsoon]

They have an ira thats not the educational ira but similar, it lets you use the $ for other things in case your kid gets a scholarship.  It has a number like 57 or something.

[CDubyaP]

roth IRA is a retirement account.

Also if i was making suggestions i would say save up for 3 months until you get 1,000 then go invest in a 6 to 12 month certified deposit or CD.  Since you say its long term and if you can seriously put 1,000 in the bank and not touch it i would keep doing this rolling over the interest every time and adding to it what you have saved each month.

For example 1,000 in after 6 months i believe 6 months is the shortest time you can get maybe 3 months.  You add to it all the money you have saved or make another CD.

I believe places like TIAA CREF can help with getting investments started for kids college funds etc.

I think a Roth IRA can be used for education without being taxed.....but I could be wrong.

[beatnikluv]

College 529 accounts are tax-free for educational purposes.

[Conway Cool Daddy]

You can withdrawl the contributed funds from a Roth IRA without being taxed if they are for education. Any gains above that are taxable. Roth IRAs are a very good investment and you can start relatively cheap with automatic withdrawls monthly. Mine's through T Rowe Price.
The best investment you can have is a 401K, (if your employer matches funds.) It's like giving you money for retirement.

[CharlieHustle]

Out of my previous experience in banking and investments, If this is long term, don't use money market or CD's.
The returns won't do much for you after inflation.  Use conservative mutual funds like the American Funds Balanced Fund.

[Apathy]

Open an Ameritrade account and put it in index funds.  Only make trades every 3 or 4 months to reduce costs.  Stay away from qualified plans and/or college funds (529s).

[Tomhog™]

Capital One has a MM fund that gives good yields with little to no minimum investments. 

The college 529 my be one of the best options.

[BigSnout]

Send it to me.  I will invest it for you.

[CDubyaP]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

My only suggestion is to diversify the account with the majority going in small risk, then spread medium to higher risk areas. I think mine is broken down to 50% small risk, 25% medium, 25% high.
You just don't want all your eggs going into one basket.....or so I've been told....but again, I am no E.F. Hutton.

[barbqueHog]

Take the spread and bet it on USC

[Conway Cool Daddy]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

My only suggestion is to diversify the account with the majority going in small risk, then spread medium to higher risk areas. I think mine is broken down to 50% small risk, 25% medium, 25% high.
You just don't want all your eggs going into one basket.....or so I've been told....but again, I am no E.F. Hutton.

I think if you go with the index funds like Apathy suggests you get instant diversification. Not a bad plan IMO.

[TulsaHogFan]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

My only suggestion is to diversify the account with the majority going in small risk, then spread medium to higher risk areas. I think mine is broken down to 50% small risk, 25% medium, 25% high.
You just don't want all your eggs going into one basket.....or so I've been told....but again, I am no E.F. Hutton.

I think if you go with the index funds like Apathy suggests you get instant diversification. Not a bad plan IMO.

Look at May, worst month for the S&P in the history of it if i am not mistaken. 

Sometimes they are great, sometimes they aren't lol.

I work in Finacial Planning.

[Apathy]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

My only suggestion is to diversify the account with the majority going in small risk, then spread medium to higher risk areas. I think mine is broken down to 50% small risk, 25% medium, 25% high.
You just don't want all your eggs going into one basket.....or so I've been told....but again, I am no E.F. Hutton.

I think if you go with the index funds like Apathy suggests you get instant diversification. Not a bad plan IMO.

Look at May, worst month for the S&P in the history of it if i am not mistaken. 

Sometimes they are great, sometimes they aren't lol.

I work in Finacial Planning.

My suggestion was based on JJHog's indication that this would be a long term investment.

P.S. Kudos to you JJHog for thinking early and planning ahead.  I'm sure Junior will thank you some day.

[TulsaHogFan]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

My only suggestion is to diversify the account with the majority going in small risk, then spread medium to higher risk areas. I think mine is broken down to 50% small risk, 25% medium, 25% high.
You just don't want all your eggs going into one basket.....or so I've been told....but again, I am no E.F. Hutton.

I think if you go with the index funds like Apathy suggests you get instant diversification. Not a bad plan IMO.

Look at May, worst month for the S&P in the history of it if i am not mistaken. 

Sometimes they are great, sometimes they aren't lol.

I work in Finacial Planning.

My suggestion was based on JJHog's indication that this would be a long term investment.

P.S. Kudos to you JJHog for thinking early and planning ahead.  I'm sure Junior will thank you some day.

Long term investments can work, but remember, if its college education he wants to prepare for, his money only has at the maximum 18 years to work for him.  He needs to make sure his money is 100% efficient in that time frame.  Thats what we do, we make sure people are being as efficient as possible with their money.

[Apathy]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

My only suggestion is to diversify the account with the majority going in small risk, then spread medium to higher risk areas. I think mine is broken down to 50% small risk, 25% medium, 25% high.
You just don't want all your eggs going into one basket.....or so I've been told....but again, I am no E.F. Hutton.

I think if you go with the index funds like Apathy suggests you get instant diversification. Not a bad plan IMO.

Look at May, worst month for the S&P in the history of it if i am not mistaken. 

Sometimes they are great, sometimes they aren't lol.

I work in Finacial Planning.

My suggestion was based on JJHog's indication that this would be a long term investment.

P.S. Kudos to you JJHog for thinking early and planning ahead.  I'm sure Junior will thank you some day.

Long term investments can work, but remember, if its college education he wants to prepare for, his money only has at the maximum 18 years to work for him.  He needs to make sure his money is 100% efficient in that time frame.  Thats what we do, we make sure people are being as efficient as possible with their money.

Just out of curiosity, what do you suggest?

[Hawgasaurus]

I would take it to Tunica and roll it on the craps table about every 3 months or so, would be about as effective as the stock market currently!!!

[sooie dog]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

Check your e-mail

[slicehog]

Depending on where you live some states have a prepaid college tuition program. You set up a payment plan based on current tuition rates and no matter how much the cost rise your college is covered. 

[CDubyaP]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

My only suggestion is to diversify the account with the majority going in small risk, then spread medium to higher risk areas. I think mine is broken down to 50% small risk, 25% medium, 25% high.
You just don't want all your eggs going into one basket.....or so I've been told....but again, I am no E.F. Hutton.

I think if you go with the index funds like Apathy suggests you get instant diversification. Not a bad plan IMO.

My or I should say my wife's account with Primerica does that. I have a Roth IRA and Mutual Fund through USAA as well as TSP (Thrift Savings Plan) with the military and I have to allocate how it's distributed or I can anyway.

[SultanofSwine]

As another person in the field, take Tulsa'a offer to help. He is already thinking along the right terms for your situation. If you need or want a second opinion after talking with him, feel free to shoot me a note.

[hawgweiser]

http://thegiftplan.uii.upromise.com/

in a state where they don't often throw a dog a bone, Arkansas' 529 is a good one.  actually allows a yearly state tax deduction as well as allowing the $$$ to be withdrawn tax-free for educational purposes as mentioned above.  Vanguard funds and various asset allocation choices. consider it.

[drakehog]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

Borrow $3,000 from the bank and take Southern Cal and give the points on Sept. 2.

[MF]

Google "Coverdell Education Savings Account".  It was formerly called the Education IRA.  Allows you to contribute up to $2000/year (I believe) and is not taxed if the funds are used for educational expenses. 

Most banks and credit unions offer them with a wide range of investment options for the funds.

[pork-e-pine]

Depending on where you live some states have a prepaid college tuition program. You set up a payment plan based on current tuition rates and no matter how much the cost rise your college is covered. 

This is an amazing way to guarantee that the students go to school in state.  That is brillient.  I wonder what happens if the students don't qualify

[BlackKnightHogFan]

Young person has $200-$300 mth to invest long term for his baby boy's long term future, does not have the $3k to open an account with a Fidelity, etc. Any suggestions?

Money Mkt Act?
Roth Ira?

Please don't take anybody's advice from a message board or an e-mail to make an investment decision.  Why?  Investing is a complex process.  For example, there are many ways to save for your children's education. Some of those include a ROTH IRA, traditional IRA, UTMA account, taxable account, Coverdall account, state sponsored 529 plan, and mutual fund sponsored 529 plans.  Inside these wrappers you can own different type of securities.  Such as CD's, Money Markets, Stocks, Managed Mutual Funds, Index Mutual Funds, Closed End Funds, Bonds, and Exchange traded funds.  Some Index funds are fine but remember all the return you will get will be the index it is linked minus expenses.  Manager Mutual Funds, on the other hand, have a commission to invest in them but there are several good ones that constantly beat their index with the same amount of internal fees.

Also, investing is a personal preference.  What is right for you may not be right for hsv, or Douglas etc.  I say that to say this, before you do anything go see someone who is a specialist in investing.  Either a stockbroker or a financial planner.  Be sure to inquire two things.  First, there should be no charge for initial meetings or reviews.  Second, some of the bigger names on the street such as Merrill Lynch, Morgan Stanley, and UBS are in the "wealth management" business.  Therefore, unfortunately your account may not mean much to them.  AG Edwards, Edward Jones and smaller regional firms will take much more interest in your account.  Also, a relatively new broker will be able to give you more service simply because he/she have less accounts and you mean more to them.  Relatively new means someone with 2-5 years in the business.  Finally, go check out your broker on the NASD web-site.  We are all registered with the NASD and you can look at out CRD# for any, um...indiscretions a broker may have.  Do your self a favor and meet with someone face to face, outline your goals, and if you trust them invest with them.

[Snouty]