Consumers Digest

I want to start investing on stocks or bonds. which is the best?

I am 23 yrs old and i want to start investing some of my money. i do not know anything about the NASDAQ or ameritrade or any other place where ppl buy and sell stocks or bonds. i want to start investing but i have no clue where to start or what website is best for me to beggin trading on. i dont have a lot of money to invest but id rather put it to good use vs me jus wasting it. any info would be appreciated thankx

Public Comments

1. bonds are safer and more reliable, but stocks is where you can make more money. it's up to you if you want to gamble or go with a sure thing.
2. i would say put it in both STOCKS- can get u lot of money fast, but u can lose money realy fast BONDS- they are slow and boring, but they are costant and win win put them in both and u have a nice combenation of money going in and out, but bonds are win win though
3. I invest in mutual funds, that way your money is spread out amongst many investments. My mutual fund has investments in Europe, Japan, and the US and so it seems to weather the problems that specific countries have very well. I started out with 4k in 1996 and have 45k now. Go to a broker live Edward Jones.
4. The best advice I can give is to go to a Financial Planner first to let them help you understand what you are getting into before you actually invest any money. Alot of firms will give you a free consultation. Call around to reputable companies and find the best one for you. Once you understand and educate yourself more, you can decide whether to place trades yourself or trust in the Financial Planner to do it for you. Best wishes!!
5. been there before...Open and account at Schwab which is so far the cheapest and most safe of the discount brokerage so far (etrade is going down). Ask them for a list of funds, as you are young you can choose some aggressive funds 100% equity (I would go for growth stock fund, not value fund). Set some $ asside and see if there is a couple of company stocks you like to invest in. Avoid volatile stocks, penny stocks, any stock tip that your cousin/neighboor/colleage gave you. Actually talk to Schwab, they are pretty good and cheap to get started. Learn by reading SECstatements 10K, cnn/money, subscribe to the Wall Street Journal, the conomist, barrons. You'll get there Good luck
6. Mutual funds - they invest in stocks and bonds and reduce the risk because they invest in a lot of different companies - if you buy 100 shares of one stock and it goes down -you lose money and you could lose a lot if you choose the wrong stock at the wrong time - in a mutual fund, some stocks could go down, some go up - less volatility
7. Did you ever think of chatting with a professional advisor. Are you looking to grow you capital or are you looking for a hobby. Please read my profile and lets chat.
8. First thing to do is to take out a Roth IRA with a low cost company such as T. Rowe Price, Fidelity, or Vanguard. The maximum contribution for this tax year is $4,000 (being under 50.) I am taking for granted that you are contributing to an employer sponsored plan already. Then, I would invest in an index fund. Basically, you're investing in the whole market with these funds and have low costs because of the low turnover (buying and selling.) Next, you may want to invest in a bond fund, preferrably a U.S. Bond fund. Then, invest in a money market fund or money market account. Although not insured by the FDIC, they are very stable and have a share price of $1. They invest in short term gov. and AAA corporate bonds, short term CDs, and 90 day treasury bills. Great way to start. As you get into it, add a few more funds to your portfolio such as a growth stock fund, income stock fund, international fund, an perhaps a REIT (Real Estate Investment Trust.)
9. First go to the yahoo finance section. They have a good area to help teach you basics about investing, terminology, strategies, etc... Also between stocks and bonds the answer is both. In order to protect yourself you need to be diversified. That doesn't just mean owning different industries in stocks but also own bonds to hedge against the shocks the stock market may take. Diversify is the most important aspect in investing. Also first take care of your retirement before dumping money into speculative investments, (mutual funds, IRA's, 401K's etc..) Good Luck
10. I would said it is depend on your goal, risk taking, and knowledge. If you want a better return, I would said stock is a better option. However, if you are lack of experience and knowledge. I would recommend you to take a study and invest in mutual fund.
11. At the moment, the bond market is showing a steady but gradual growth. Suggest you invest in the bond market. But ... practice trading stocks. Assume, you have portpolio on $ 10,000. Do virtual trades, using an Excel spreadsheet - buy and sell. Consider that you have to pay broker's commission, taxes and other fees for each trade.
12. NONE OF THEM. You can lose all your money. Better invest in BUSINESS if you want to earn money.You will get minimum 20-25% annual interest. You will not get such high returns on bonds, money markets, mutual funds or CD's. $5,000-->$6,000 in 1 year I run my own business. I have profit margin of 8% a month. My business is very profitable and I'd like to expand it. You may email me (through my profile) for more information if you really want to earn money.