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10K at age 22 How to invest?

Old 01-22-2007, 03:10 PM
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Default 10K at age 22 How to invest?

I just read the how did you get weathly thread and have 10k saved up from summer work and small carpentry jobs around town. I am a graduate student in building construction and will have my masters degree in 1 year. Currently I have all of my money in a checking account earning 0 interest. Everyone talks about the power of compounding. How would you invest. I will ultimately use this money as a down payment for a house in 1.5 to 3 years depending on where I get a job etc. I know very little about investing but I always watch my pennys which I credit to having any type of money as a student. I thought about CD's and my roommate does Scott Trade, but I feel like I would loose it all day trading.

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Old 01-22-2007, 03:14 PM
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Default RE: 10K at age 22 How to invest?

i'm no expert by any means i always play it safe.1 or 5 year cd works for me.depends on if you may need it anytime soon
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Old 01-22-2007, 03:16 PM
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Default Re: 10K at age 22 How to invest?

First thing is at least get it into an ING or Immigrants Bank account where it will earn upwards of 4.5% just sitting there.

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Old 01-22-2007, 03:22 PM
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Default Re: 10K at age 22 How to invest?

After some fast women you mean? Well I feel good, I'm only down $980 so far today in the market, and the day isn't over Ladder some CD's for sure EZ money
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Old 01-22-2007, 03:29 PM
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Default Re: 10K at age 22 How to invest?

First things first... What kind of debt do you carry? If you are paying high interest credit cards the best thing you can do is pay them off and get rid of them if they are a problem. Then do what others said and get what is left into a high interest money market account so you can ease your way into what ever investment vehicle you decide on. You'll need to decide when you'll need to touch the money and that will determine which investment plan/vehicle is best for you.
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Old 01-22-2007, 03:40 PM
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Default RE: 10K at age 22 How to invest?

No debt. Drive an old diesel truck that I paid cash for. Everything else aint pretty but it works.
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Old 01-22-2007, 03:55 PM
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Default RE: 10K at age 22 How to invest?

If you need the money in 1-3 years then being in the market is unwise. I would put it into the best-yielding CD you can find with a 1 year maturity, and roll it as required (moving it if you have to in order to keep the best rate you can locate)

There are a whole host of other things you should be thinking of IF the money is long-term, but if you NEED it (its not speculative cash) then you do not want to be in the market with it given that you have a one year horizon for needing to cash it out.
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Old 01-22-2007, 03:55 PM
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Default Re: 10K at age 22 How to invest?

Personally, I would look to save up another 10K and buy a foreclosed or distressed house in this depressed market. With decent credit, you can get into a house for 10% down. Then, rent it out or live it in yourself.
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Old 01-22-2007, 04:09 PM
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Default Re: 10K at age 22 How to invest?

Scottrade is a great idea...Buy Apple Stock. The stock is down today, will go way up soon.

Avoid credit except to buy a home, fixed rate mortgage, only as much home as you truly “need“.

The construction business is a winner.

Go to the book store, buy two books “Winning Thru Intimadation” and “looking Out For #1” both books by Robert J Ringer. Life changing reads for me.



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Old 01-22-2007, 04:52 PM
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Default Re: 10K at age 22 How to invest?

10k aint $hit these days, but it is hard to save my best advice would be as others stated 1 year CD in these parts are 5.3% APY thats the route you need to go and the safest until you accumulate enough to take some risk . careful tieing it up longer then that, most cases it is not worth more then a year of locking it in . and not to belittle you as far as the amount as i feel the same if you would of said 100k think about how long it takes to save and how fast you can spend it feel good about yourself having a savings account . you would be surprised how many dont and live week to week. I know i was surprised in a lot of cases
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Old 01-22-2007, 05:01 PM
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Default Re: 10K at age 22 How to invest?

That's great you have no debt. Have you thought about investing the $10k in yourself to fund a business? Could be the best investment you could ever make and with you starting off so young you'll have plenty of time to get back up on the saddle if you are knocked off. Too many people want to start a business but as one ages, the level of risk you can assume in your life diminishes.

To answer your question about wealth from the previous thread my answer is simple: I started my own business at a young age and stuck with it even through the rough years.

As far as investment advice I can't help you but many here can.
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Old 01-22-2007, 05:09 PM
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Default Re: 10K at age 22 How to invest?

There is a guy around here who has done really well with duplexes. Use the $10K as a downpayment, live in one side and rent the other. He built one, then after only a couple of years he had enough money for a downpayment on building a second one, etc. Now I believe he has about 15 of em with about half of them being paid off. This way you have some income and are building equity. Years from now you could sell, keep on collecting rent for income, or set up a family trust and pass assets onto your kids with favorable tax treatment. Just another suggestion.
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Old 01-22-2007, 05:10 PM
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Default Re: 10K at age 22 How to invest?

Wow ~ KUDOS TO YOU, MELVILLE!!!! I for one am VERY proud of the fact that you're as young as you are and have that kind of money sittin' around. Not too many people your age can say that.

As far as investing goes....I have no clear cut advise. I will say this - open up a savings account and put most of the money in it for now until you figure out what it is you want to invest in. Better for that money to be earning SOME interest for you rather than NONE in the checking account.

Also - great for you for being in no debt and driving a used car. KEEP IT THAT WAY!! That's one of the best ways I know of to keep your wealth.

I'm sure others here and maybe even some people you know can give you some heads up advise about where and how to invest your money. But I will say this - follow your heart and if it happens to sound too good to be true - then it probably is - so run the other way!

GOOD LUCK!!!!
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Old 01-22-2007, 05:13 PM
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Default Re: 10K at age 22 How to invest?

good idea FF but i think the way he is doing it is a good play. hes saving counting his pennies saving and seems to be going in that direction with the side work... in this day in age i think its best to keep your day job and do the side work , and work that into self employment first. these days everyone wants to be self employed which makes alot of failures because of cut throating.

as far as the CD's go, that 5.3 is a very attractive rate for only 1 year but you have to see if $530.00 is worth locking it up for the year. its a hell of a lot more then the 0% you are earning now

and as senile stated you can get a high rate money market rate that fluctuates. im guessing if that money is now in your checking account you are actively using it. i have one at 4.9 % and actually that is probably your best route being young and may having to have access to the $ youe only losing 40 bucks and not locking in for a year
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Old 01-22-2007, 05:20 PM
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Default RE: 10K at age 22 How to invest?

tommyr904 - 1/22/2007 3:14 PM

i'm no expert by any means i always play it safe.1 or 5 year cd works for me.depends on if you may need it anytime soon

thats because your a wuss and dont want to gamble with your 10 mil
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Old 01-22-2007, 05:54 PM
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Default Re: 10K at age 22 How to invest?

E*Trade Savings 5.05% APY until you decide

https://us.etrade.com/e/t/home/compl...CH:17214524%7D

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Old 01-22-2007, 06:16 PM
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Default Re: 10K at age 22 How to invest?

Thanks for the suggestions. I realized I lost 6 months of time and interest leaving it in the checking account since I stopped summer work. Basically, I have another year until I get a master degree and then a assisent project management job for a GC and start making some decent money and also figure out what aspect I really want to do. (ex my own biz...marine contractor) I do not have time to work besides a couple saturdays a month nor start a buisness being in graduate school. I will probably looking into a CD for the next year.


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Old 01-22-2007, 06:32 PM
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Default Re: 10K at age 22 How to invest?

What ever you do...don't buy a boat!
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Old 01-22-2007, 06:37 PM
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Default RE: 10K at age 22 How to invest?

soooo true
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Old 01-22-2007, 06:38 PM
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Default Re: 10K at age 22 How to invest?

Good idea on the CD. I'm down $1100 today and didn't even play
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