treasurydirect.com questions
 

hey guys now that im 18 i am starting to realize the importance of investing and saving your money.

i found this website treasurydirect.com and i would like to open up an account but am wondering how safe it is. it asks for my social and basically every info possible.

should i trust it?

are there other places where i can buy tbills and all the federal govt bonds?

thanks alot for any help.

EDIT did some reading and i think this site is a govt site...... so maybe it is safe.


we can just start a discussion on investing and stuff!

MOST IMPORTANT RULE:
if the web address doesn't start with https (the s being the important part) it is not a secure site. Never type any information in unless you see the https. Even if the website says secure or your browser says it is always good to check for the https.

i did go to www.treasurydirect.com and it took me to https://www.auctions.zionsdirect.com/ which is a secure site but i have never heard nor known anyone that has heard of them. I would research it more to make sure it is safe. the site is secure so a hacker cant take your money when it is being sent but doesn't mean the site cant take it once they have it. Not saying this site will because like i said i have never heard of them. Just saying make sure you look into it, thats all.

Check out this site http://www.daveramsey.com/ then check out his investing info on the left. He also has endorsed providers recommended as well. Dave is an honest guy and you are probably best off getting into a good mutual fund at this point.

Be careful where you invest, real stock investments is for people that have the expendable cash to take chances, it is a lot like gambling whereas with a mutual fund if you pick one that has been around a while you can see how it has done over the ling term. Just remember investments take time to pay off, there is no get rich quick scheme that works.

Most of all take your time and learn everything you can before investing, don't rush into anything and if an investment adviser is trying to get you to hurry and invest, run the other way.

If you want something real stable, drop some $ into a CD or online savings account to get started. It's quite easy to get 3%+ interest with a savings account or CD. If you don't have a savings account already, you really should get one before trying to make any real investments.

Aside from that, I took a look at the returns on the TBills on treasurydirect....suck! I almost get that % back in cash from my dividends credit card every month.

No way... Head to a reputable institution such as Merrill Lynch or HSBC and start there... For savings everything should be FDIC insured and hence funds protected to min 100k

Why government bonds or T-bills?
If it is patriotic thing, go for it, otherwise I don't find bonds to be much of investing (low return for anything quazi safe). Additionally you are locked into a set term (which might not be a problem.)
You might be able to get a good deal via an auction process, but I would suggest a CD from a local (or online bank) or an online savings account.
Currently I have an online savings account that yields 3.05% APY through HSBC.com I know etrade and WaMu and emigrants bank (as well as others) have the same thing. If you acutally want to invest (in my definition investing requires non FDIC insured account but better returns) look into mutual funds. I know there are a few out there with only like 1000 minimum balance, but don't go to risky, just an index fund or blended fund should do (S&P has averaged 9% per year sense that index was created), and sense the market is sorta low now would be a good time to get in as prices are cheaper.
Edit: A reason to invest in a fund, not a stock in the begining: I have a friend who bought $900 of stock in a corporate security company, last year stock was worth $2800 (after only 2-3years of holding onto it). Right now it is worth around $800 because that company lost a huge contract to a rival. In a mutual fund with a mix of companies you can filter that companies loss with someone elses gain to be more stable.

At your age, you definitley want to go with long term low risk "Funds". You have to have patience.....hard to do when investing in your future at such a young age. DO NOT ever, ever fall for the "inside" info, gonna make a bundle line......no matter how trustworthy the source. Roth IRA's are also a good investment, but you need to have an intial amount to invest. You may also, at some point want to consider something that you can draw out of tax free to fund your childrens education if you choose to do so.

Actually when you are younger you want to go with something with more volatility and non income earning. Later in life you swap around... Find a small FA who is willing to take you on now for growth in the future...