Investment For A 16 Year Old?

December 21st, 2009 | by admin |

I’ve had a job for about a year now and i’m getting close to 4000 dollars. At first I thought i’d buy a car but what good would an old used car do a few years down the road, i’d just have to buy another one in a few years plus pay for all the repairs. So investment struck my mind. I’m only 16 though and have about 4000 dollars with a limited amount of income. This will be my first time investing and I’m not really sure how to do it and have some questions?
Can a 16 year old invest?
Do I have to invest through a broker? How does that work?
Is that enough money to invest in real estate? Is it possible to join in with other people investing in realestate?
Should I wait to invest because of the bad economy?

I know there’s also mutual funds but that doesn’t really appeal to me.

Best bet would be shop around for a CD (Certificate of Deposit). Stocks are risky at the moment, and are for more long term investments. Real estate is also shaky and for $4000 you really wouldn’t be able to do too much. You can get a CD at any local bank, they usually hold your money for 6 months to a year and can tell you exactly how much money you will earn for letting them hang onto your money for that year. If you want to learn more just click the link I have.

  1. 5 Responses to “Investment For A 16 Year Old?”

  2. By elocin on Dec 22, 2009 | Reply

    John, if you turn that 4000 into a Roth IRA, using only 2000 you would have quit a bit in 20 years, and the remaining two I would put in the bank and let it sit there until I had another way to invest it. You don’t have to do it all at once.
    References :

  3. By Emislaurus on Dec 22, 2009 | Reply

    Best bet would be shop around for a CD (Certificate of Deposit). Stocks are risky at the moment, and are for more long term investments. Real estate is also shaky and for $4000 you really wouldn’t be able to do too much. You can get a CD at any local bank, they usually hold your money for 6 months to a year and can tell you exactly how much money you will earn for letting them hang onto your money for that year. If you want to learn more just click the link I have.
    References :
    http://en.wikipedia.org/wiki/Certificate_of_deposit

  4. By Italian girl on Dec 22, 2009 | Reply

    You do have enough to invest in an REIT–real estate investment trust. They are sold like stocks. They pool money and invest in real estate. They come in various varieties.

    http://www.bullsector.com/realestate.html
    References :

  5. By eEz on Dec 22, 2009 | Reply

    John J, it’s a buyers market! Unless of course, you doubt the economy will ever pick up again.
    References :

  6. By 2X on Dec 22, 2009 | Reply

    Keep $1,000 in a savings account and put the rest into an online stock market account. Scottrade is a good place to start. Before your money is available to start trading be sure to read and watch all you can about how the stock market and trading works. Good luck. oh yeah and don’t even bother with CD’s and money market accounts right now, the interest you will make on them in a year can easily be made in 2 minutes with trading stocks.
    References :

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