What do you think is the best investment for low income people?
Sunday, February 28th, 2010 at
6:58 pm
I have heard safe strategies like CD’s Money Markets, and on the other hand heard high risk investments for younger people and precious metals, gold, silver etc. Any good ideas for the low income people?
Filed under: Retirement Planning
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Elimination of debt.
That all depends on your spending habits, bills, age, family size, goals, and etc.
If you want information that will suit you my suggestion is to right now save at least 15% of your income first (if you can)…then I would go and speak with a financial advisor…
My financial advisor doesn’t charge me anything because I am very low income (even though I make a little above an average American but I got a lot of bills)…..he only makes profits off my investment..
food
As you have low income, you need the highest possible return, but you cannot afford to take risks. The best investment for you therefore, is a bank CD account. But shop around for the highest rates and be prepared to move to other banks as and when they offer better rates.
Education.
Land and home ownership is a good place to start.
CDs/money markets have no risk
you can get about 5% interest
in mutual funds you can get about 10% interest but there’s a risk involved
with individual stocks you can make a lot more, but you need to know what you’re doing
Not knowing the WHOLE story of the low income family I can only suggest a Technology Mutual Fund within a ROTH IRA.
Its safe, Its accessible and you can start with minimal $ and add each month or annually.
I would suggest reading Rich Dad Poor Dad. It has changed my life and the concepts Robert Kawasaki teaches work no mater how much you make at your job (Just over broke).
I think the best place is the stock market. I know Scottrade offers some no-transaction mutual funds. Each month you put a little bit of money into your account and then buy shares in the mutual fund. Also, some companies offer direct investment plans. Here is a link for one of them from Equity Residential, a well-run REIT that offers a solid dividend:
http://www.equityresidential.com/content/ii_main.asp
Here is a great short book to read to learn the fundamentals of investing: "The Little Book the Beats the Market".
http://www.amazon.com/Little-Book-That-Beats-Market/dp/0471733067/sr=8-1/qid=1167792243/ref=pd_bbs_sr_1/102-4006985-7128107?ie=UTF8&s=books
Here is a website that lets you see what the best investors are buying and selling:
http://www.top10traders.com/Top10Standings.aspx
Hope this helps.
Invest in yourself. Get smarter=get a better job.