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Hey I'm new to this but I just really want to know what I should do. I have $100000 that I would like to invest so I can grow my money. I am a 20 year old college junior majoring in computer engineering with a minor in business. I go to a really good school and have been blessed enough to not have any student loans. I have no debt at all. The only things I have are a car note that is $45/month and my phone bill which is $80/month. These two bills come out a separate account which I have 5k for checking and 10k for savings in. The only other thing I can think of is books and gas that I really need to pay for. How and what should I invest in so that I will be wise with this money. I don't want to look back a think that I made stupid choices with my money. Also if you could please tell me how much annual interest would be earned on average and how risky it would be. Thank you again.
If you're an engineering major, with 100k, and with no debt, that's awesome!
Make sure you keep it that way. If you're working, quit, and use the 100k as an investment for yourself and your GPA and really pushing to get a job out of college. The rationale is that an investment in your education to make sure you get a well paying job with a respected company is such a wealth multiplier so as to far outweigh what you could do in just investing the money.
BUT, assuming you are already getting good grades (say 3.2 or higher), then the advice changes. Then I would open a Roth IRA and max out the contribution allowed by the IRS (this year is 5500 bucks). Put the money into a timeline horizon fund, like a 2040 fund. Then, open a traditional IRA and do the same thing.
Once you have done that, then you should allocate most of the remainder for subsequent years. If you feel like opening a taxable account, that's great! If not, that's cool too; you could put it into a conservative fund or even just cash to help set up paying down your first house. Then, with the rest of it, I'm going to recommend a crazy thing; get some nice stuff so you don't have to worry about your car breaking down or some weird thing like that, don't share a room with roommates who will distract you, and then have a little fun!
Why "have fun?" These are the best days of your life. You should be reading good books, listening to good music, staying up way past bed time playing video games once in a great while, and falling in love. Some of that money could be used to do some traveling. You're in your early 20s. After college comes a job, a wife, kids, a mortgage, etc. Trust me on this; you get only one shot to act like a kid while being in an adult body and college is it.
I was actively investing at your age (I'm 26 years old). You should put the majority of it in an ETF that tracks the market such as SPY or DIA. You can then try investing in some companies you like... maybe AAPL or GOOG. If you like it, learn more about investing and it could make you a lot of money and be fun in the process. Since you are majoring in computer engineering, you may even get hired at a tech company that eventually goes public, so it would be great if you have actual experience in the stock market. When it comes to investing, time is your best friend. I started with $2k-$3k when I was in high school. As of today, I have $395k in my stock account, so the sooner you start the better.
So to answer your question exactly, I would put $30k in DIA, $30k in SPY, $30K in QQQ and play around with $10k in companies you like or think will do well. The risk for the 3 funds I mentioned is low-to-moderate. I am certain DIA and SPY will recover after any crash, while QQQ is likely to recover. QQQ is the riskier of the three funds. If it interests you, you can learn about fundamental analysis and technical analysis and potentially make a nice chunk of change while you're in college with relatively little work. If you have a really good day, you can withdraw a few thousand dollars and go on a trip somewhere.
are your parents going to continue helping you build wealth? that's a good head start and would be accelerated if they continue. ultimately, it shouldn't really change much for you. id set up an account for that etf and then invest it for long term growth. there are tons of ways to do that, the simplest yet still effective would be to put it all in an index etf or a blended fund like vanguard Wellesley. watch it grow over the years and ensure yourself an early and/or comfortable retirement. you will still need to keep adding to it consistently for it to do that though.
just concentrate on your studies and do not invest that money
any time soon. certainly don't put it in the stock market.
my advice is to put some in a corporate bond mutual fund,
some in a municipal bond mutual fund, and the rest in precious
metals. take my advice seriously. good luck.
Hey I'm new to this but I just really want to know what I should do. I have $100000 that I would like to invest so I can grow my money. I am a 20 year old college junior majoring in computer engineering with a minor in business. I go to a really good school and have been blessed enough to not have any student loans. I have no debt at all. The only things I have are a car note that is $45/month and my phone bill which is $80/month. These two bills come out a separate account which I have 5k for checking and 10k for savings in. The only other thing I can think of is books and gas that I really need to pay for. How and what should I invest in so that I will be wise with this money. I don't want to look back a think that I made stupid choices with my money. Also if you could please tell me how much annual interest would be earned on average and how risky it would be. Thank you again.
You are 20 with $100,000 and want people you don't know in the slightest to tell you what to do with that money?
Be careful or in a year you'll be 21 and have $10.
There are so many no-cost sources of professional help that you can survey, take in and consider and then make a good decision. Seen it many times, someone has a bit of money, runs to the Internet to figure out what do to with it and in short order runs back asking how to get out of financial ruin.
just concentrate on your studies and do not invest that money
any time soon. certainly don't put it in the stock market.
my advice is to put some in a corporate bond mutual fund,
some in a municipal bond mutual fund, and the rest in precious
metals. take my advice seriously. good luck.
Many years ago when I began investing, I attended a seminar offered by an investment firm and invested in 3 mutual funds which grew very well. I also researched various no-load funds on my own and as I accumulated money invested in the ones I chose. All did well and have continued over the years. I always reinvest. I cannot comprehend consulting strangers in an internet forum for advice on what to do with large sums of money. I also have quite a bit in non-taxable bonds, bought through the investment part of my bank.
BUT, assuming you are already getting good grades (say 3.2 or higher), then the advice changes. Then I would open a Roth IRA and max out the contribution allowed by the IRS (this year is 5500 bucks). Put the money into a timeline horizon fund, like a 2040 fund. Then, open a traditional IRA and do the same thing.
You can't max both a Roth IRA and a traditional. They have a $5500 combined limit, not individual.
Quote:
Originally Posted by Snowball7
just concentrate on your studies and do not invest that money
any time soon. certainly don't put it in the stock market.
my advice is to put some in a corporate bond mutual fund,
some in a municipal bond mutual fund, and the rest in precious
metals. take my advice seriously. good luck.
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