Asked by Sincarie  |  Submitted January 17, 2016

I'm 28 years old and I am on social security I get $860 month and would like to know how could I invest to start my own business.

I'm basically on dialysis.

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  Answers  |  1

January 19, 2016

Hi Sincarie,

I was thinking about your question on investing, unfortunately the information I have for you is very general. To specifically answer this question I would need specific more information. I hope what I have though is enough to get you started.

The first thing to think about is how long you have before you need to use the funds. Also, how much do you anticipate needing. In your question you did not mention how much of the $860 is available to invest. My initial thinking is to segregate the investments into two main segments: short term and intermediate to long term. Begin by saving funds in the short-term segment. Place these funds in safe and stable investments like treasuries or certificates of deposits (CD’s). Let these funds accumulate to a point that cover 30 to 90 days of expected business expenses; then begin accumulating funds in your intermediate to long term investments. These funds may be invested in more aggressive investments like an S&P 500 fund or ETF or some other equity fund or ETF. This strategy allows for safe cash to pay for business needs while allow for growth in the more aggressive segment of you funds.

The key is to think about how much you need to start your business and what the expected monthly expenses will be. This can vary greatly depending on the type of business and the structure of the business (information you did not share).

I don’t know if this information was at all helpful, let me know in the comments if I have even answered the question you are asking.

Karl Leonard

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