Your Questions About Investing Money

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James asks…

Why Bernard Madoff had stopped investing money?

Why Bernard Madoff stopped investing when he had enough money? I mean, why he started Ponzi scheme?
Is it because, he couldn’t make enough money from his investment or, he gave more return to his investors than he used to earn? Or both?
Or, there is/are other reason/s?

financi4 answers:

Greed & ego.

Paul asks…

Can I earn money through net without investing even a single paise investment? Guide me Properly.?

I would like to earn money through net. Ya I have sound knowledge of internet scriptwriting. Can I earn money through other procedures on net? Can I feel that net is the best medium to earn money without investing money? Can I rely that my rigidness to earn money through net is quiet right? I would like to see myself as a best seo scriptwriter. Would you please give me proper guidance.

financi4 answers:

1.Go to this link join it. You get money for clicking on ads. About 100$ per ad.


Same but get lesser money.


Donald asks…

Should I consider investing money with my impending college expenses?

I would really like to invest my money (i have been reading some books on this lately). Is it a smart idea to use this money to invest when I will likely use much of it for college expenses within a year or so?

financi4 answers:

Jeff410 has the right answer – no. I would just like to add a little bit of detail as to why this is the right answer and a offer couple of suitable options for you.

When you invest in the market, you have to be prepared to ride its ups and downs. One year is just not enough time to recuperate your losses. For a very good illustration of this, compare where the market was in 2007 and now. Even three years later, the general market and most stocks in general are still showing a loss.

If you are counting on using your money for any upcoming specific expense, then you will want to shield it from any potential losses. Any money that will be needed within a year needs to be kept accessible and safe.

If you want to earn some interest on your money, while it will not be much considering current rates, you can invest in some short term CD. Alternatively, you can look around for savings accounts that have a higher “promotional” rate that lasts for the first few months of your account (a lot of online banks like Ally and ING are offering these). Since it is a very short time before you will withdraw the money, the promotional rate savings account might give you a better yield than CD. You would have to crunch the numbers to determine the yields on the various accounts.

Joseph asks…

I would like to start investing money for my children in the future, how would I do this?

I am 23 years old, single, and I have 2 children. I work a good job, however, I don’t have that much money to invest, but I would like for my children to have a better future than I did. Any suggestions?

financi4 answers:

Since you have 2 kids, it’s a good bet that at least 1 will go to college, so a 529 is a good idea. The earnings are tax free if spent on education. 529’s do have 1 caveat. If not spent on education, the earnings are taxed as normal income when withdrawn AND penalized by 10%.

I’m providing a link to the best 529 guide out there provided by Clark Howard, a syndicated radio consumer advocate. On these, you usually sign up directly with a state plan (not necessarily your state of residence) and not through a broker. You save fees and money this way.

Another good way to save for them and not risk the 10% penalty, is by saving within your Roth IRA. If you need the money for them, you can withdraw all of your contributions (not earnings) without penalties or taxes. If they don’t need it, you’ve got extra money for your retirement. Pretty slick, huh?

Daniel asks…

how does a retirement account work? how how does my money grow by investing in a retirement account?

I know that once I invest money in a retirement account I can’t touch it unless it’s for emergencies but I would like to know how does my money grow in this type of account and how soon can I see results?

financi4 answers:

When you are investing, you have to invest for the long term to see any results. In the beginning years, you may be quite emotional to the market fluctuations. If market went down, the value of your portfolio went down. Your natural response would be, “I lost money.” But the fact is you haven’t lost or gain any money because you didn’t touch your money. How your portfolio performs depends on these factors:
1) What is your average price per share compare to current price per share?
2) How long have you had the investment?
3) Dividends and capital gains payout (if any)
4) Type of investment. Are you invested in conservative funds or large growth funds? If you want higher growth, you need to be willing to accept higher risks.
5) How disciplined are you? Are you going to pull out when the stock market is down or are you going to stay in and continue to invest?

William asks…

i am investing all my earning money in gold is it good?

i do not have any commitments. So i am investing all my earned money in gold. is it ok? or else what is good idea for investing money.

financi4 answers:

Gold is at an all-time high. In bad times gold goes up, but when things get better it comes back down again. If you had lots of investments it might not be a bad idea to have -some- gold, just in case the economy collapses completely. (But then if it really did collapse, gold would be worthless ‘cos you can’t eat it or put it in your car or heat your home with it.)

Besides, the companies that advertise on Glenn Beck et al are selling ‘rare’ coins, of which most of the value is numismatic. That’s a TERRIBLE investment. If you’re going to buy gold, buy bullion or some form where you are actually paying for the gold itself.

But I would say you should open an account at a non-commission brokerage like Charles Schwab. Get some literature on mutual funds, see which ones have done the best in the last few years, and divide your money between them. Mutual funds used to be considered sort of exotic, but they are professionally managed and most of them do better than the stock market as a whole.

Richard asks…

what do you think is the practical and best way of investing money?

i want to invest my money first before starting a small business, but i don’t know how and what’s the practical way.also, im not sure of loans programs and buying stocks is kind a gamble i might totally lose.

financi4 answers:

Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan.

Go to : low-cost-stock-recommendations


Click on the “DRIP’s” Button on the Navigation Bar

These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.

They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor.

If you decide you are interested in DRIP Plans, I believe there is instructions on the webpage.

I strongly recommend looking into it. They are great plans.

Good Luck

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