teen investing

teen investing questions and answers

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Q: Investing a large sum of money in share market - can anyone give advice?
I am in my late teens and after a couple years of work I have $50,000 (this to me is big money) banked that I would like to invest. However, I am not sure if investing all of the $50,000 is a good idea - Especially taking into account the recent market volatility. Therefore, should I look to invest all of it? or should I only invest a certain percentage of it?

A: The usual technique which reduces volatility the most is to split it into stocks and bonds. Since bonds can go up when shares go down. So one protects the other. The ratio is supposed to be 60/40 s/b With large blue chip stocks and AAA rated government bonds used only. Another suggestion as you notice the way the stockmarket is going, is to leave some as cash (1/3 or 1/2 your 50,000 whatever) since there will be some great bargains available if the stock market really takes a dive. Everyone will be bailing out on fire, and in the aftermath, 'cash' will be king. Big stocks going for give away prices in other words. And only those with cash able to buy them up. Always have some cash on hand is what the big investors say for many reasons, and what business and companies themselves do. Seems like a good philosophy to me :)

Q: A teen who wants to buy stocks?
Any advice for a teen who wants to buy stocks for the first time? I'm thinking about getting a dividend re-investment plan for Pfizer or getting a S&P 500 index. Also, what happens if I'm interested in investing in a stock that is in Europe? How do I get started and do I need a stock broker?

A: To answer the last question first, it's best to use ADR's (American Depository Receipts) to invest in overseas companies. To get started, you need money and someone with a seat on the stock exchange which trades the stock you wish to buy. Scottrade is very inexpensive per trade with no other charges. Once the account is set up and money is deposited in your account, you tell them the symbol of the stock you wish to purchase. Stock brokers "help" you pick your stocks but they charge more per trade and often have other fees.

Q: what are some of the things a young teen can invest in to make a little more money?


A: Your future...get off the computer and study. (that was a little joke) Lawn care is always a good, profitable business. Offer to grocery shop or run errands for the elderly.

Q: Are you a teenager with experience in the stock market, or did you start as a teen?
If so, I was wondering how you got started. How old were you when you started? Did you read any books? Do you recommend any books? How did you learn about the basics? Who, if anyone, helped you? How much money have you made? How much of your spare time do you invest in investing? How much money did you initially invest? These are just a few questions I have. Any other tips or suggestions would be great. I am 17 years old, by the way.

A: I've been in the industry since 2001, and love my career choice, however, I NEVER thought I would work in this business as a teen. I hated math (stats, algebra, and Calculus are all major parts of what I do), I thought the stock market was boring, I didn't understand it, and had no interest in it. I went to college as an undergrad and majored in Sport Management. I had to take a finance and accounting class to meet the requirements for the major, and I got Cs and Ds in both. I can't stress how much I hated it. So how did I get here. In 2001 after being out of school for 6 months or so, the economy turned and I needed a job, I saw an ad that Morgan Stanley was hiring for their advisor trainee program, and I decided to apply, most of the interview focused on my sales skills and logic, so I did well. I got the job and the first thing they did was put me in an empty office and said I had to study for the Series 7 exam. They also required all new trainees to come in at 7am and watch the "Morning Call" with the analysts. I felt like they were speaking another language! Slowly but surely as I studied, and watched the analysts I fell in love with the business. Everything I learned initially I learned from those experiences. I started reading the Wall Street Journal everyday and got a subscription to Investor's Business Daily. After almost 3 years I knew I didn't want to be in sales, I wanted to be in institutional investment research, so I went back to school and got my MBA. So that's my little story about how I got into the business. Here are the answers to your other questions: Did you read any books? Just the Series 7 study books, those papers listed above, and the research done by the firm in the beginning. Do you recommend any books? In the higher levels of the business there are certain books that you are basically expected to have read. A portfolio manager at a major Mutual Fund company gave me this list: The Intelligent Investor by Ben Graham Security Analysis by Ben Graham The Essays of Warren Buffett : Lessons for Corporate America by Warren Buffett & Lawrence Cunningham Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett The Worlds by Mary Buffett and David Clark The Little Book That Beats the Market by Joel Greenblatt The Money Masters by John Train How did you learn about the basics? I learned by studying for the 7 and being forced to watch the morning calls. I continued my education, was intellectually curious, and asked a lot of questions. Who, if anyone, helped you? No one helped me initially, but now that I've been in the business for a while, I do have a mentor (the same Portfolio Manager that gave me the book list). How much money have you made? In my investments? I don't know the exact number, but I've averaged 10-12% on my investments since I started running my own money. How much of your spare time do you invest in investing? Its my career and my life, so I watch CNBC when I wake up and am working on Level 2 of the CFA, which is 2-3 hours of studying a day. How much money did you initially invest? $1000, but I put a couple hundred dollars a month into my accounts in a dollar cost averaging strategy.

Q: Tips on saving and investing for teens?
I'm fourteen and I just want tips on how to save and invest. I seem to be very good at making money disappear, spending it on things which I forget I even bought in a few hours. How can I make the money go further and how can I become more aware? Also, I hoping to get a job this year and I reeeeeeeeeeally don't want to just waste the money that I make. So...any ideas? Thank you. x

A: I'm 17 and hav always been a saver, when I had a "allowance" I would only spend half and then put the rest in my piggy bank, then as I got older. I make a habit of empting my change pouch and save that (it can really add up!). for my 15th birthday my aunt gave me $500 I used that to open a bank account, it is actually my dad's but I also have acess and when I turn 18 (one year away!) he will take his name off the account. I would suggest splitting your pay check 50/50 or 25/75 and put some in a high interst savings account and the rest into a regular account so you can spend it. good luck hope i helped.

Q: How do i become a teen star?
I am 13 and want to be an actress really bad!! I dont want to be an actress becaues of the fame and the money but because i get this feeling when ever i sing or dance or act infront of people. I really dont have that much experience exept for chours, and dance ( i have danced for 12 years and still am). I also dont have that much money to invest in this cuz my parents dont want to invest money. Oh and does anyone know any additiond in New York State?

A: by Hailey A Member since: October 08, 2007 Total points: 328 (Level 2) I've been acting since I was 4 so I hope I can help you out. For starters take every acting, dance and singing class you possibly can. Because even if you don't have a lot of experience, training looks GREAT on your resume. Then type up that resume. If you have any school plays, community theater plays, etc. if you don't have much experience look for open calls around where you live. Then get your headshots done, research it if you dont know what a headshot is. Now they can be very exspensive, the good ones at least. If you live in NYC I'd reccomend Melissa Hamburg. After that do a mailing of agents in your area, with your headshot and resume (email me if you need advice on how to find legit agents in your area) Hopefully a few of those agents will call you for an interview. If you don't know an agent helps you find different auditions. Now , fi an agent asks for a up-front fee it's a scam and leave as fast as you can. This is how a REAL agent gets paid. If they find you a job and you get paid, they get "about 15% of what you made. Then sing up for something like Backstage.com to look for auditions yourself. And then, just audition more and everything. I hope I helped. Email me if you need more help, want to find agents in your area or auditons in your area.

Q: What are some high yield investment ideas for a working teen?
I recently got a job and would like to invest my earnings. I'm looking for ideas and how to accomplish these ideas. Thanks!

A: I invest in income funds such as Franklin Funds income fund - NY exchange symbol FKINX. This fund also has investments in corporate bonds as well as stocks with high dividend yields. Another good choice is defensive stocks. These are stocks that do well in recessions. A list of these stocks is the following: http://www.247wallst.com/2008/01/defensive-stock.html An investment solely in stocks typically should involve money that you want to invest for the long term (at least 5 to 7 years). That usually gives you a profit even with the ups and downs of short term fluctuations. Other good choices are US Gov't securities such as Govt National Mortgage Association securities invested by Franklin US Govt Securities Fund (NY stock exchange symbol FKUSX) currently generating a yield of 4.7%. This type of investment is typically for shorter time periods since it's not that volatile.

Q: What that best company for a teen to invest in?
im just a teen and i have a vision and goal for my future, but i need money to accomplish it. i want to open my own school, and i don't want loans, and i need my own money. i need to get a LOOOT of money by like the time i ever graduate university. please which company today is best for me to invest in so i can get a lot of money, and how much money shouldi invest. i have a savings account so far. but savings account interest will take a gazllion years. please give me appropriate answers.Thanks!

A: my dad told me about sites like google and yahoo, but their not big yet. if u choose the right 1 u can make a looooot of money!!! i don't know what any of them are called but if u searched aroung i bet u could find 1!! :-)

Q: Great books about investing and the stock market?
Which books would you recommend for a beginning investor interested in the stock market? I've already read The Motley Fool's Investment Guide For Teens, One Up on Wall Street, and I recently bought Common Stocks and Uncommon Profits. I've also considered getting The Intelligent Investor. Any other suggestions would be great.

A: Keep your distance from any book that promises to teach you how to make millions. No honest book can. Indeed, I'd stay away from any book that talks about beating Wall Street or doing anything else remarkable. The only exception would be Peter Lynch's books (which you've already mentioned). The classic introduction to value investing is The Intelligent Investor by Benjamin Graham. I'd recommend this and Lynch's books and any college textbooks. Textbooks may be dry, but they won't lie to you or give you unrealistic expectations. If you're serious about investing, it's worth dealing with a bit of dryness. I might add that these books won't really define the basic operations of the stock market. So if you're a total beginner, I'd start with reading all the articles in Investopedia.com. Hope this helps. :D

Q: What are the essential clothing items for a teen girl?
So far, I need a: -North Face jacket -UGG boots -PINK (Victoria Secret's) pants What else? And what should I invest my money on??? (I can only buy one thing...) No rude comments please!

A: Uggs arent really an essential, i have uggs and their mint, their really cosy however i wore mine during winter and uggs arent the "in" thing anymore because its coming into spring/summer. The shoes that are coming into fashion are patent shoes and metalics etc. The essentials for spring/summer 2008 are high-waisted, wide leg jeans, but skinny jeans are also an essential for any girls wardrobe! (in my opinion skinny looks better). Checked shirts and girly gingham dresses. Tea dresses, slouchy shorts and ra-ra skirts, and patent shoes and bags. Pastel colours and blue, red and white are key colours for SS08. Get yourself a good pair of jeans because jeans and a plain t-shirt with a cute logo on it looks great in summer. Sheer fabrics, soft pastels, ruffles and ruching are all key factors you should look out for. Very thin blouses and flyaway materials give out an amazing look while dresses can be layered with unfinished, rough edges. Waistcoats and shrunked jackets can be worn over kaftans, while embellished tunics can be draped over turned-up shirts with faded grey denims. Give off a laid-back summer look with preppy style separates. Slouchy shorts and ra-ra skirts work well with cute logo tees and 50's style summer dresses. Fine blouses and cropped blazers look good together aswell. Floral prints on tea dresses and frilly blouses look amazing with black trims and patent detailing. Remember to accessorise aswell. Choose clutch bags instead of oversized handbags, and oversized bug-eyed glasses. Sometimes its the accessories you choose that makes the outfit. Less is more! Dont overdo what you wear as this always looks horrible! I Hope ive helped you =] ~xXx~

Q: how should i invest for college as a teen-live in atlanta?
i`m 16 years old and considering in getting 2 certificate of deposits for $500 each(one for 6 mths and the other for 1year)and i gotta go to college in 2 years and i`m not going to live in a dorm or with my parents. should i just get a mutual fund when i have $1000,plus should i get stocks at all at age 18 or just stick to MMA, and bonds. I wanna know whats gonna give me the best return and i dont wanna wait too long to see the $$$

A: Money doesn't just come overnight. I wouldn't be expecting $30,000. From your $1,000 for a few years investing. Though, A few people will get lucky. Very lucky. It depends, What is your risks tolerant. Will you be okay. If you lose all the money? In the stock market. Or, half of it. Are you going to be adding money, to the 1,000? These are some questions to ask yourself. If the money is important to you. And, you don't know a lot about the markets. I would see, if your parents understand the stock markets, very well. Most don't. Then, go talk with an investment advisor. Then another advisor agian and again. Make sure, he cares about your money. Some, brokers will just want your commission. I like a lot of A.G. Edwards advisors. Thats all if you want to invest into stocks. Which are riskier, but should produce better returns than a bond. Take your time in chosing an advisor too. If you don't want to risk your money. Stay with the bonds. Which should return a lower amount. Some years, Bonds do a lot better. But, you are young. And they are loans for students now a days. You should be investing a bit riskier, than a 50 year old. That has already built wealth.

Q: i am a teen and i want to learn how to invest and how to become financially smart?
i want to know what are bonds, cds and other things

A: You can research bonds and CDs on the web. If you want more advice take a book out of the library (because then you don't spend money and that's a good financial decision in itself).

Q: A teen looking to invest?
Im 15 years old and have an interest in stock trading. I was a very active trader when i started trading chinese IPO's in october but left the stock market in mid november foreseeing the volitile markets ahead. Now that the stock market is looking to be a great value play im thinking about getting back in the game. Are there any groups/clubs where i can go and talk to other teen investors about stocks? Thanks!

A: Don`t enter into the stock market totally. Consantrate on your studies, it is the time to study. After completing your study you can enter. If you are really interested in stock market investments, try to invest your money on your studies. Become ICFAI after completing CFA you can become.

Q: What business can teens invest in with 10,000 capital?
we want a home-based business. Please exclude food businesses. thanks.

A: go to bookstore and pick up magazine of "business opportunities and franchises -also any hoem business magazine will also have ads for home and small business opportuinities google "home business opportunities" - you'll get 10 million web sites

Q: Investing and teens?
I want to be financial secure , when I'm order. So I was wandering if you could help me get started. i want to start investing in the start market. If you could give me tips on the best places to go to invest, how much i may need, and a good stock to invest in ..... and any other tips on invesing would help sooo much. I know education is important. And that's why I cherish education very deeply.

A: Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself. Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Here is some reading material that can get you started in the right direction, The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki Then try some of these What Works on Wall Street by James O'Shaunessey Beating the Street by Peter Lynch One Up on Wall Street by Peter Lynch The Warren Buffett Way by Robert Hagstrom Trading For a Living by Alexander Elder Mastering the Trade” by John Caster How to Make Money in Stocks” and 24 Essential Lessons for Investment Success both by William O’Neil The Disciplined Trader by Mark Douglas Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ ) While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why. This site has some basic information for beginners. If any site offers free information, take it. Other website that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/ Stock Charts - http://stockcharts.com/ http://www.investorshub.com/ http://www.1source4stocks.com/ Visit some of the more professional websites like Zacks - http://www.zacks.com/ Smart Money - http://www.smartmoney.com/ Schaeffer’s – http://www.schaeffersresearch.com/ Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.