Your Questions About Investing Money

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David asks…

I am 15 and want to start investing my money?

I just got my first job and wanted to start investing my money instead of letting it sit there. I have NO idea where to start or what to do. i make ~160 a week and have 2000 in the bank. can i do my investing online?

Justin answers:

In North America you must 18 to open an account in your name with a brokerage firm or a mujtual fund company. You can have a parent open a custodian account for you using your social security number, when you turn 18 the assets in the account can be moved to an account in your name

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs). One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience. Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information. I have found that Vanguard ( & Fidelity Investments (
can meet your needs for mutual funds. The service and information they provide is all free and you will find it helpful.

Regardless of what you decide, do not ever let anyone tell you not to invest, especially those that do not invest themselves.

Good luck on your journey

Mark asks…

where do I go to start investing money in the stock market?

i want to become a stock investor because I have some extra cash and looking to make money off the stock market I would like to know how it works? how i should go about it? and where do i start?

Justin answers: (the best but minimal balance required or you need to open a checking account so your brokerage account isn’t charged a fee.) (not as good as etrade but no minimal balance required)

Right now is a great time to begin investing in the stock market. It may go down a little bit more but it will definitely rebound fairly quickly in the next 6 months. Right now is a really choppy time, some days are down 5% and others are up 5% (lot’s of volatility so it should be fun)

The main thing is that you need to open a brokerage account and the “discount” brokers that I listed above give you a lot of flexibility. As always, only invest money for the long haul or money that you don’t plan in using for a few years and you will be sitting good.

Both web sites have tutorials for beginning investers. More than likely you will start off buying companies that you know and are familar with their services. It’s better to buy a company that sells a product or service that you like/ or believe in then to buy a company that you don’t really know about except that it appears like a really good deal based on price and what everyone else says about the company.

I recommend starting out slow. If you make a deposit and open up a brokerage account, don’t invest all you money in one day. Invest it in stages so you can take advantage of any market down swings.

Etrade has a great IRA package with no minmal balance requirement but it’s a retirement account. This might be a good starting point for you to throw a couple dollars in this account and start trading. Once you feel comfortable, open a brokerage account.

Mutual Funds are under rated and they provide huge returns with the least amount of risk exposure. Not to mention, Etrade will let you buy and sell most of them for free. Make sure they are “no load funds”. The only catch is that you need to hold them for 3 months.

I would throw $1,000 in the stock market anyday then take a vacation and blow it in a week. Don’t listen to the people who tell you to wait. They are the ones that will wish they did what you did when you did it.

Have fun

Chris asks…

I want to start Investing Money into the Stock Market, Where should I invest?

What Broker should I use if I am starting off investing no more that $1000? I dont want to start off with a large amount, i want to work my way up. Which company is best for a beginner Investor? What company actually has clients that start off investing only $1000-$2000 to start off with? Any advice would be very appreciated

Justin answers:

First off, I would read up a bit on the basics of money management and investment. I like for that, but there are many many web sites that can get you started. They will give you much more comprehensive and complete answer than anyone could give you here.

I’ve included a bunch of short answers, also, in case you just can’t stand to read up on this stuff.

I would start with no-load mutual funds, not stocks. No load because you don’t pay an exchange fee. Mutual funds because they are less volatile (typically) than individual stocks.

If you were looking to invest for retirement purposes, I would start by investing in any employer-sponsored 401k accounts that are available to me. Often, employers contribute matching funds into those accounts, making them a great investment.

I would open an account with a large brokerage house – Fidelity, T. Rowe Price, something like that.

Remember, everyone who ends up with a large investment portfolio started out with a small nest egg.

Robert asks…

investing money in Australian Stock Market?

I want to invest money in Australian stock market.. but i m new to this field. moreover I also don’t have a citizenship of Australia. I m a nepelese.. staying as a student visa in australia. pls help me.

Justin answers:

You will need your tax id number,
just open an account with any brokerage and start trading.

George asks…

What is the best way of investing money?

If you have $200k and have a $1mil goal, what is the best way of investing it and how long would it take to achieve that goal?

Justin answers:

When do you want to achieve this by?

With that kind of capital you’re best buying a well established business. I’m sure lots of your friends have things you can invest in, but if you’re on Yahoo Q’s I imagine your friends are not the place to park a lot of money.

I have a friend doing very well in the storage industry. Started by working at one. Get a job at a business you’d like to own. You have the money that you can afford to work for a low wage if that’s what it takes. Then use what you learn over a few years to get out on your own.

William asks…

How to earn extra guarateed income through net without investing money?

I wish to earn some money using net facility and strictly don’t want to be cheated. Kindly help
I came to know about some advertisement pages that will be named for me and at every click of it I will gain some amount of money.

Justin answers:

Try reading this article

Michael asks…

is it possible to live from trading stocks and investing your money?

I am talking about newbies in the business. I have a friend who wants to start trading stocks and getting into the whole investment thing. She is a stay at home mom and there is really very few jobs that work for her, she asked me if I think it is a good idea, I told her to go to one of those courses on “how to trade” the local community college offers but I am not sure my advice was correct… is it possible for her to live from trading stocks and investing her money?

Justin answers:

If she is very lucky. Day trading isn’t that different than gambling. When you buy a stock your betting that the stock will increase in value. Sometimes they don’t and you lose value. Although you keep your shares of the stocks. I would recommend investing in solid companies with an established track record that pay dividends. This isn’t a buy one day and sell the next gamble. It’s an investment in the long term. Further if you sell a stock too quickly you end up paying a higher capital gains tax. Another words it’s not that easy to make quick and easy money this way. Let me explain it this way.

Let’s say you buy a stock xyz at $100.00 dollars a share. You have $5000.00 dollars to invest. That means that you can buy 50 shares. In a week the xyz stock is worth $101.00 dollars. That means that after you pay for your trading fees normally around 20 dollars you made 30 dollars.

Now if you buy a riskier stock at a lower value lets say zyx at $5.00 a share. You still have $5000.00 to invest. Now you can buy 1000 shares. If the stock changes value to $5.50 you will make $500.00 dollars minus the transaction fees upon sale. Bingo you just made around $470.00. Now on the flip side, if the stock goes down below $5.00, let’s say to $4.50. You will have the option of selling at a loss and you will l lose around $530.00. Or you can just hold onto it and hope that it will go up again. Sometimes they don’t and just go bankrupt, then you just lose all your investment.

For more info check out or

Steven asks…

If I make money investing in stocks with after tax income(not in IRA) do I pay income tax or capital gains?

If you max out a Roth, ESA, and the 401k match, what’s next? I want to start investing in stocks and mutual funds above these. Was wondering what kind of taxes I will owe on the money I make on these, capital gain or regular income?

Justin answers:

Any gains you have from investing in stocks/mutual funds that were made with after tax money would be subject to capital gains tax. If you hold the stocks/mutual funds for at least 1 year, they will receive favorable tax treatment and be classified as long-term capital gains.

Currently, the maximum amount of tax owed on LT Capital Gains is 15%.

ST capital gains are taxed at regular income levels.

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