Q. I am 18 years old. I realize the importance of investing for retirement early because of the impact that the "baby-boomers" will have on the nation's social security fund. I have been looking around at different types of investments (Mutual Funds, Roth IRA's, etc.), but I don't really have a concrete answer of what looks best. If I can't get one here I might just have to get a financial adviser.
Thanks for your help
Thanks for your help
A. First- long term is a somewhat flexible view, or should be in that you must always be prepared to modify positions according to changes in market and economic conditions. When the recession hit, I advised a friend to make a change with a particular stock he owned in order to profit from the recession. He did not follow the advice, as he thinks he's a long-term investor. That one error cost him $425,000 as of today, and the stock is only 70% back. When it's fully recovered to pre-recession value, the number he missed out on by not adjusting his strategy will be $696,000. You have to play the hand on the table- not the one that existed last week or might next year.
Roth is a good way to go, however the limits on what you can contribute will prevent it from becoming as large as it might be otherwise. I use both an IRA and and a conventional account, and I manage two other family accounts. My best portfolio has grown 593% in 33 months, so I'm doing a bit better than your average investor.
Starting young is a huge advantage. Starting at 18, it's entirely possible to be a millionaire in your 30's. You won't do that with the slow growers however. Many super winners we bought in the depth of the recession are close to normal price, and no longer hot buys. However, the real estate market in still in a recession induced depressed state. That means stocks in that market are still down, and will grow from the natural recovery of real estate as well as from individual success, making them multiple winners. Many of the REITS (real estate investment trusts) will gain from 3-10 times the current cost in the next five years, and will pay fat dividends as well. The time to get in on them is now- and like everything else, there will be a time to get out and move to something new with stronger potential when the conditions change.
You must consider what risk exposure you want to take, what gains you hope to achieve, if you will manage it yourself or give it to a broker (never again in my case) and much more. IF you will not monitor it yourself, play it safe. Nobody will take better care of your money than you will.
Roth is a good way to go, however the limits on what you can contribute will prevent it from becoming as large as it might be otherwise. I use both an IRA and and a conventional account, and I manage two other family accounts. My best portfolio has grown 593% in 33 months, so I'm doing a bit better than your average investor.
Starting young is a huge advantage. Starting at 18, it's entirely possible to be a millionaire in your 30's. You won't do that with the slow growers however. Many super winners we bought in the depth of the recession are close to normal price, and no longer hot buys. However, the real estate market in still in a recession induced depressed state. That means stocks in that market are still down, and will grow from the natural recovery of real estate as well as from individual success, making them multiple winners. Many of the REITS (real estate investment trusts) will gain from 3-10 times the current cost in the next five years, and will pay fat dividends as well. The time to get in on them is now- and like everything else, there will be a time to get out and move to something new with stronger potential when the conditions change.
You must consider what risk exposure you want to take, what gains you hope to achieve, if you will manage it yourself or give it to a broker (never again in my case) and much more. IF you will not monitor it yourself, play it safe. Nobody will take better care of your money than you will.
When is it safe to give a baby rice cereal?
Q. At what age? My baby is almost 7 weeks old. Is it too early to mix a little rice cereal in with his formula? Thanks!
A. It is recommended by most doctors that you wait until a baby is at least 6 months old before introducing ANYTHING other than breastmilk or formula! There are a lot of good reasons for waiting this long and there are many informational baby care books on the market that will give you guidelines and great advice for this, and many other, parenting questions. However, many baby care books still say that it's okay to start introducing solids at 4 months, and this is outdated. The newest research says that you should wait until 6 months.
One of the main reasons that you should wait for solids is to avoid causing your baby to have food allergies. The intestines of infants are not able to digest many proteins at such a young age. The proteins pass whole into the baby's bloodstream, rather than being absorbed by the intestines. This phenomenon is called "open gut". The baby's body doesn't recognize those proteins and so decides that they are foreign invaders (pathogens) and then produce antibodies to fight that protein. The baby might not have a reaction the first time you introduce the food, but subsequent feedings could trigger allergic reactions! You do NOT want to set your baby up for a lifetime of food allergies and there is absolutely no reason to give him anything except formula or preferably breastmilk, for many more months.
When your baby is 6 months old and you do start introducing solids, you should introduce them very slowly, waiting four days between introducing every new food. This way, you can monitor your baby for any food allergies and you'll be able to know which foods are problematic. It's very hard to pinpoint problem foods when your baby has received several items in the same day/s.
Finally, you should be aware of the foods that are choking hazards and that are most allergenic and avoid those foods until the recommended age.
Here is a great article that will answer all your questions, from kellymom.com. Kellymom is a fantastic website with vast amounts of useful, scientifically accurate information. Here's the article: http://www.kellymom.com/nutrition/solids/delay-solids.html
Congratulations on your wonderful new baby. Take it slow, enjoy him while he's little and don't rush him into things before his little body is ready. He was made to thrive on breastmilk/formula for the first six months, don't mess with nature. : ) Good luck!
One of the main reasons that you should wait for solids is to avoid causing your baby to have food allergies. The intestines of infants are not able to digest many proteins at such a young age. The proteins pass whole into the baby's bloodstream, rather than being absorbed by the intestines. This phenomenon is called "open gut". The baby's body doesn't recognize those proteins and so decides that they are foreign invaders (pathogens) and then produce antibodies to fight that protein. The baby might not have a reaction the first time you introduce the food, but subsequent feedings could trigger allergic reactions! You do NOT want to set your baby up for a lifetime of food allergies and there is absolutely no reason to give him anything except formula or preferably breastmilk, for many more months.
When your baby is 6 months old and you do start introducing solids, you should introduce them very slowly, waiting four days between introducing every new food. This way, you can monitor your baby for any food allergies and you'll be able to know which foods are problematic. It's very hard to pinpoint problem foods when your baby has received several items in the same day/s.
Finally, you should be aware of the foods that are choking hazards and that are most allergenic and avoid those foods until the recommended age.
Here is a great article that will answer all your questions, from kellymom.com. Kellymom is a fantastic website with vast amounts of useful, scientifically accurate information. Here's the article: http://www.kellymom.com/nutrition/solids/delay-solids.html
Congratulations on your wonderful new baby. Take it slow, enjoy him while he's little and don't rush him into things before his little body is ready. He was made to thrive on breastmilk/formula for the first six months, don't mess with nature. : ) Good luck!
Ways to save money with having a baby?
Q. I want to try for baby over the next year, and I posted a question on what the costs of having a baby are (such as everything that needs to be purchased) and someone suggesting asking a question about what ways there are to save money with having baby (thanks for the suggestion!!!)
Does anyone have any ideas?
Thanks!
Does anyone have any ideas?
Thanks!
A. -get whatever you can secondhand- from garage sales, craigslist, friends, wherever
- limit the stuff you get and choose ways of caring for your baby that take less stuff. For example, my partner and I plan on getting a baby sling and not a stroller. A sling is cheaper and we think it will be better for the baby to be carried by us close to us where he/she can see our faces and the faces of other people (as opposed to seeing knees and feet whenever we go out anywhere.) Other examples- if your baby is sleeping in the same room as you, no need for a baby monitor and if you cosleep, no need for a crib/baby bed. (Common practice in the country where I live and it helps prevent SIDS - Asian countries have lowest SIDS rates in the world and highest cosleeping rates)
There are a lot of choices like this, and different options, so don't give in to the marketing that says you need an expensive crib, stroller, toys, etc. Do the research and figure out what things will work for you. (Different people will have different things they consider necessary- some moms I know swear by their strollers and cribs, it's just not for me and my family.)
- limit the stuff you get and choose ways of caring for your baby that take less stuff. For example, my partner and I plan on getting a baby sling and not a stroller. A sling is cheaper and we think it will be better for the baby to be carried by us close to us where he/she can see our faces and the faces of other people (as opposed to seeing knees and feet whenever we go out anywhere.) Other examples- if your baby is sleeping in the same room as you, no need for a baby monitor and if you cosleep, no need for a crib/baby bed. (Common practice in the country where I live and it helps prevent SIDS - Asian countries have lowest SIDS rates in the world and highest cosleeping rates)
There are a lot of choices like this, and different options, so don't give in to the marketing that says you need an expensive crib, stroller, toys, etc. Do the research and figure out what things will work for you. (Different people will have different things they consider necessary- some moms I know swear by their strollers and cribs, it's just not for me and my family.)
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Title Post: What are the best long-term investments in today's market for someone at age 18?
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Rating: 96% based on 987 ratings. 4,3 user reviews.
Author: Unknown
Thanks For Coming To My Blog
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