Investment Advice for the Young Entrepreneur

Posted by fashionentrepreneurreport On Saturday, September 05, 2009

In a world where people’s 401k’s have fallen to half their value, international economies are plummeting, and analysts say we haven’t hit rock bottom yet people of every age are concerned with money.

Panic breeds morose results and pulling all of your funds out of their accounts will only plunge the market further down.

One word ringing through this economy in the next four years is “RISK” says Antonio Perez, CEO of Eastman Kodak corporation. It will cost you more in the beginning, but the return on investment will be huge. Sinking a little more of your hard earned money into something you truly believe seems uncertain but will actually pay off in the end.

This can be achieved by either placing money you have already saved into a new business instead of turning towards banks, or investing in the economy in general.

Investing wisely during this time can make a young business owner a profit once the market settles. If you have a little time to wait, below is Nolcha's ideas for a strategy that can increase your odds of increasing your investment over the next 5 years! (Of course, all investing involves risk, and there are no guarantees)

Step 1: Go on-line to your current online broker or Etrade.com or Fidelity.com. Take $5,000 total and commit to investing $1000 per month for the next five months.

Step 2: Take the $1,000 per month allowance and split $500 each into broad based Exchange Traded funds like the S & P 500 Exchange Traded Fund (ETF) and the NASDAQ ETF.

Step 3: Do this for five straight months.

This will allow you as an investor to place your money in a sort of “basket” of all of the traded stocks without minimal management fees, in most cases less than two tenths of one percent. In the next five months you will have:

• Made it through the election
• Deposit small amounts sequentially so you do not loose your entire savings as the market moves up and down
• Dollar cost average your way in
• Watch your money grow in the next five years as the economy gets back on track.

Trust us, we may know clothes, but we also know it takes money to make the clothes!