Anybody know anything about investing?

[xmas74]

I want to invest in a college for my daughter. I have almost 15 years. I don't have very much-I think that I can scrape out $200.00 monthly (by moving back home w/ my parents). I just don't know where to start. I have been reading on it for the past few days but my brain hurts:cry:
Please help!

[MissMillie]

1. Buy low, sell high

that's all I know.

[xmas74]

2. Same here!

I still have blanked out half of what I've read.

[Midlodemocrat]

3. If your state offers a pre-paid tuition plan

go with that, or a 529 plan. That is your best bet. You have a lot of time, so you should be okay.

[xmas74]

6. I've been reading up on that area too.

I just want what will be the best use for the money that I invest.

[Zynx]

4. The best way to go is with index funds.

There is little point in trying to pick stocks if you don't know much about investing. I would go with Vanguard's index funds such as the S&P 500 index fund, the Total Stock Market index fund, and the Value index fund. These will provide you with diversification and will provide, on average, 8-9% per year.

http://flagship5.vanguard.com/VGApp/hnw/FundsByType#Domestic_Stock_Domestic_Stock_-_General

[xmas74]

5. That has piqued my interest the most.

I am good with the basics of investing, I just know nothing about the actual process and what it takes to start up.

[SCDem]

7. I'm not putting all of it in one spot

I have a 529 for my son.... but that money can only go to education else you get a severe penalty. So if my son decides to be Bill Gates or something like that I don't want all of the money in a penalized account. I also am putting money into a Roth IRA for myself but that can be taken out as college money also to help my son and then I have a Mutual fund that I put some money in that can also be used to help him out or savings for me.

[xmas74]

10. I have been thinking

along the lines of diverisfying. I want the best "bang" for my buck-but it sounds like you already understand that.

[hickman1937]

8. Go to the bookstore.

Last time I was there I saw The Complete Idiots Guide to Investing, I think that's what it was called. I'm going back this weekend. I am not making a slur on your intelligence, but if you are anything like me(I know nothing about this subject) its best to start with simple. My local school district offers adult ed classes, check out your. I can't take them because I work afternoons.

[xmas74]

9. I know you're not.

I know the basics, I just don't know the practical aspects of actually investing (like how to start, things in that nature).
I have thought about buying that book, but I didn't know if it was what I would need.

[trotsky]

11. Be sure to check out the socially responsible funds.

Parnassus is a good place to start learning about what it means.
http://www.parnassus.com/

[xmas74]

12. I will

definitly look into that!

[radwriter0555]

13. Roth IRA. THE best way to save for your kid. Tax deductible, low monthly

payments, say, $25 a month, compounds and grows VERY quickly. You can also make it a TRADING IRA, wherein, once you've learned A LOT MORE you can trade stocks, tax free, within the IRA, very complicated, however.

It's ludicrously extreme to save $200 a month for your child's education. $25 - $50 a month would be more than sufficient for the next 15 years as it will grow and earn income in and of itself.

The tax deduction is well worth it, however.

Google ROTH IRA and your state, to see what the rules are.

ALSO, JOIN A LOCAL CREDIT UNION. They're amazing sources of financial information and can also set you up with your ROTH IRA.

JOIN A LOCAL CREDIT UNION.

Let me repeat, JOIN A LOCAL CREDIT UNION. You can even join THIS credit union http://www.bankrate.com/brm/frames/hyperlink.asp?link_address=http://www.cmccreditunion.org

[xmas74]

14. But I can get the 200 monthly

Then again, I should save for myself too.

[radwriter0555]

18. Then split the $200 up among several accounts, xmas is a good one, since

at the end of the year, it's nice to make xmas for the baby, etc.

There is no reason to impoverish yourself to save for college. DIVERSIFY your savings and learn about trading, saving and investing.

I taught myself how to day trade and have managed to make quite a pile of money investing in real estate, stocks and so on... It's easy to learn, but takes actually doing it, reading, and reading and reading some more... and asking more and more questions.

[xmas74]

19. Thanks!

I took a few classes on it in college, but I was always afraid of the market itself (parents never had enough to invest and grandparents talk of the depression). I am a relativly intellegent person and I can catch on quickly-especially when I can relate it all back to money.
I think that the only thing that has held me back has been the childhood fears from being raised in a very lower middle class household where stocks, bonds, IRA's, etc. were never mentioned.

[xmas74]

15. And I am a member of the credit union.

The only place I will go for my accounts!

[freethought]

16. Radwriter and Middledemocrat gave some good advice

Roth IRAs and 529s both represent good options and each has its good points and not-so-good points. They also spare you from alot of the detail work, the investment decisions are left to professionals.

You could do your own investing on individual stocks and bonds. The drawback is that most small individual investors trade more on raw emotion and reaction than reason and information. You have to put alot of research and time into it to get more out of it.

[freethought]

17. Radwriter and Middledemocrat gave some good advice

Roth IRAs and 529s both represent good options and each has its good points and not-so-good points. They also spare you from alot of the detail work, the investment decisions are left to professionals.

You could do your own investing on individual stocks and bonds. The drawback is that most small individual investors trade more on raw emotion and reaction than reason and information. You have to put alot of research and time into it to get more out of it.

[xmas74]

20. I have never been the type to

worry about raw emotions-at least when it comes to money (except for stocks-always been a little scared of them).
Every little thing that I buy tends to come from many sleepless nights of comparisons and tons of reading.
I just need to get off my ass and do something.