03-13-2002, 10:45 PM
I've been investing since October of '98. I was able to partake the in the extreme highs of '99, but unforunately didn't sell much as it took a freefall last year.
If you are going to start an investment is realize that you're doing it for the long term and not hoping to triple your money in a year.
#1 thing to do: Set up a Roth IRA (assuming you make less than $100k) which grows tax-free for life. You can't take it out until you are 58 1/2 (there are some things you can take it out for, but I won't get into that) but if you assume the average return of the market over the last 60 years (12%) your maximum $2,000 investment will double every six years (rule of 72 for you finance folks) and by the time you're ready to retire, it will be worth over $130,000. Invest as much as you can up to the maximum of $2,000 every year, and you will have a sizeable chunk of tax-free cash come retirement time.
Within Roth IRA accounts you can purchase any investment, fund, etc that you would normally be able to purchase, this is just a cool retirement gimick that was started a few years ago. In investing, the most important thing you have on your side is time.
If you are going to start an investment is realize that you're doing it for the long term and not hoping to triple your money in a year.
#1 thing to do: Set up a Roth IRA (assuming you make less than $100k) which grows tax-free for life. You can't take it out until you are 58 1/2 (there are some things you can take it out for, but I won't get into that) but if you assume the average return of the market over the last 60 years (12%) your maximum $2,000 investment will double every six years (rule of 72 for you finance folks) and by the time you're ready to retire, it will be worth over $130,000. Invest as much as you can up to the maximum of $2,000 every year, and you will have a sizeable chunk of tax-free cash come retirement time.
Within Roth IRA accounts you can purchase any investment, fund, etc that you would normally be able to purchase, this is just a cool retirement gimick that was started a few years ago. In investing, the most important thing you have on your side is time.