Expert: Gina Boykin - 11/3/2007

Question
QUESTION: Hello I have a couple questions.I am in the 10th grade. I've been investing and reading about it for about 1 1/2 year.First question is is a 67% over all return in the past 3 months Good? because thats what i have(in a virtual account). How good do the "pros" do?? and  my last question if i put 50,000 dollars into the stock market everyyear for 20 years and get an average of a 50% return yearly could i really end up in the 100s of millions??? thank you bye.

ANSWER: Actually, people who get paid to invest other people's money usually only get between 12-18 percent a year on average over the long-term.  At least this is the case with regular stock investing.  This doesn't mean that they don't have some great months and some lousy months in between.

Investing is a long-term thing.  It is great that you did get 67 percent! It's even better that you are starting your financial education so young.  It would be unrealistic, though, to expect a return of even 50 percent each yr consistently.  Some years you could lose money and some years could be great.  In fact, one of your stocks could easily double while another stock goes down.

Once you really understand stock investing, you can always move on to stock options. This is more complicated, but it has the ability to provide a much larger return - of course, it's also higher risk.

Keep up the good work!  You may find that you really have a gift in investing, and if you enjoy it, you should look into becoming a stock broker or a financial advisor.  Then you can make money from your investments AND from other people's investments!

The best way to calculate how long it will take you to get to a certain amount is to use the "Rule of 72".  This rule is: divide 72 by the interest rate. That will tell you how long it will take to double your money.

For example, if you make 12 percent a year, it will take you 6 years (72/12=6) to double your money.  

If you have any other questions, please let me know.  By the way, I've listed some great websites about money that are made just for teens.

www.fool.com/teens
www.teenanalyst.com
www.youngmoney.com

---------- FOLLOW-UP ----------

QUESTION: Hello again thanks for the response another question what jobs involving the stock market pay in the 25- 100 million range a year??? thank you bye

Answer
There are many options if you want to follow a career in the stock market. You could become a stock broker, a financial analyst, mutual fund analyst, financial consultant, investment banker, portfolio manager, and many other options.

Salaries vary based on the position you take, the company, and the location, but average anywhere from $50,000-$150,000 in your first few years.  This doesn't include any commissions you may earn (which could be a percentage of the funds you manage).

Here are a few websites with more information on the career options:
http://www.careeroverview.com/money-management-careers.html
http://www.investopedia.com/articles/financialcareers/06/FinancialAnalyst.asp
http://www.princetonreview.com/cte/profiles/dayInLife.asp?careerID=68
http://www.princetonreview.com/cte/profiles/dayInLife.asp?careerID=150