Early Life Question

[JamieV]

Hey Forum

I regularly post in the Las Vegas forum but was looking for some more 'life' advice. I'm in my mid twenties and just began my career as an educator. I know there are some successful people on this forum so I am looking for some financial advice.

What should I be investing in?
Do I need to establish a portfolio?
How the hell do I even do that?
What should I be putting my little money in right now to see the benefit maybe in 20-30 years??

Thanks for the feedback and advice.

[Alan Mendelson]

These are all good questions, and I will give you some basics from my years covering investment news.

1. Since you are young you should be investing for growth as opposed to locking in interest rates. Growth means stocks. Start with a broad based mutual fund.
2. A portfolio means diversification. You don't put all your eggs in one basket, so that means stocks and CDs and short term savings too.
3. Banks are always a good source for government insured savings accounts. Some banks also have stockbrokers but you can also try an independent stock market mutual fund company such as Fidelity Investments which is one of the best known.
4. Where to invest? As I said, you should be looking for growth. Some suggest this formula: subtract your age from 110 and that is the percentage of your money that should be in stocks. If you are 25 then 110-25=85 and 85% should be in stocks. But don't forget to have six months of "cash" in the bank to carry you through rough times, and don't forget to pay off credit cards first.