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javier1984
Member
Cash: $ 0.25
Posts: 16
Joined: 20 Oct 2007
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i am 23 and i have 10k cash to move around. what can i do with this money?
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Sat Oct 20, 2007 12:31 am |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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It depends what you plan on eventually doing with the money and whether you have any debts.
If you think you may need it for something in the near future or as an emergency fund, you could put it in a high interest savings or money market account earning 4 to 5% or more.
You could start retirement savings with $4000 tax-deductable contribution to a traditional IRA. However, the deductability may be limited if you are "eligible" for an employer sponsored retirement plan at work (whether you participate or not). Deductable contributions and gains will be taxed when withdrawn (along with 10% penalty if too soon).
The wisest choice may be to start a Roth IRA with that $4000 instead of a traditional IRA (while your tax rate is low). Since contributions have already been taxed, they can be withdrawn at any time without tax or penalty. However, gains would be subject to tax and penalty if withdrawn before "qualified", except up to $10,000 of unqualified gains used towards purchase of your first home.
When your tax rate is low, it pays to contribute to a Roth IRA since qualfied gains will never be taxed and tax deduction would be minimal. As your income grows (along with your tax rate) it pays to increase deductable contributions (bigger tax deduction) to your employer's plan (or IRA if they have none). But if your employer matches contributions, it usually pays to at least contribute at least enough to their plan to get that (free money).
Note that an IRA or Roth IRA is not a specific investment, it a tax deferred (IRA) or tax free (IRA) wrapper to grow your money in any of a wide selection of investments from money market or CD to mutual funds or stocks. It can take some time to figure out what to invest in, but that can be time well spent as that money compounds over the years.
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Sat Oct 20, 2007 5:23 pm |
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pf101
Senior Member
Cash: $ 62.25
Posts: 311
Joined: 12 Sep 2007
Location: Portland, OR
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You can do lots of things...but without more info about you there's really no way to make a recommendation.
Do you have debt?
What's your timeline?
Do you have retirement savings?
Do you have an emergency fund?
What are your goals?
What's your risk tolerance?
Generic advice would be to pay off any consumer debt, establish an emergency fund and then fund a Roth. If you have money left after that, invest it in a taxable account.
Personal Finance 101
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Sat Oct 20, 2007 9:38 pm |
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switze22
Contributing Member
Cash: $ 5.70
Posts: 27
Joined: 13 Nov 2007
Location: East Lansing
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Start looking into the stock market. If you educate yourself well enough, you can do very well.
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Tue Nov 13, 2007 5:36 am |
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bijan814
Full Member
Cash: $ 12.40
Posts: 73
Joined: 25 Jul 2006
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Just put it in a CD and earn 5% interest on it. Or put it in a mutual fund.
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Sun Dec 16, 2007 5:28 am |
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Apollo
Senior Member
Cash: $ 73.85
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Joined: 10 Sep 2007
Location: New York
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A CD is a complete waste and among the worst things you could do. A mutual fund is a slightly better choice then a CD.
It is not smart to play it safe but it is safe to play it smart.
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Mon Dec 17, 2007 10:18 pm |
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pf101
Senior Member
Cash: $ 62.25
Posts: 311
Joined: 12 Sep 2007
Location: Portland, OR
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quote:
Originally posted by Apollo
A CD is a complete waste and among the worst things you could do.
Apollo and I don't agree on much when it comes to investing   but I'll agree with this 1000%!
Personal Finance 101
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Thu Dec 20, 2007 4:19 am |
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bijan814
Full Member
Cash: $ 12.40
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Joined: 25 Jul 2006
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quote:
Originally posted by Apollo
A CD is a complete waste and among the worst things you could do. A mutual fund is a slightly better choice then a CD.
Yes but it's risk-free, especially the way the market is going right now
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Sun Feb 03, 2008 6:40 am |
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No-Brainer
Senior Member
Cash: $ 83.45
Posts: 986
Joined: 29 Dec 2005
Location: Oregon USA
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If you're really having that much trouble, send a little over to me and I'll be glad to help you out with your dilemma.
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Sun Feb 03, 2008 8:31 pm |
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cbass1017
Contributing Member
Cash: $ 4.95
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Joined: 18 Jan 2008
Location: PA
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I don't think there is anything wrong with CDs for shorter term investments. If you had locked in over 5% just a month ago when CD rates were that high I'd say its a secure, honest investment.
Lets face it, not everybody has time to understand the stock market and there are a lot of brokers out there you can't trust with your money. I wish I knew how to buy and sell stocks or could atleast find a good broker but it almost makes me feel like I'm gambling to consider it.
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Mon Feb 04, 2008 4:55 am |
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Apollo
Senior Member
Cash: $ 73.85
Posts: 360
Joined: 10 Sep 2007
Location: New York
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Equity-markets are basically risk-free as well BUT the lack of knowledge, among other things, makes them risky to the majority (including professionals).
The markets are great, especially right now. I can't recall many times when it was this easy to be in the markets and profit from them. Global equity markets have been a great place and even more so since late last summer.
If equity markets would be risky or if it would be true that they have performed terrible that would apply to ALL market participants and not just to those who do not what they do.
There have been plenty of companies and private investors who have done a great job and do so regardless of what the markets do.
It is not smart to play it safe but it is safe to play it smart.
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Thu Feb 07, 2008 2:38 pm |
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chobits
New Poster
Cash: $ 0.40
Posts: 2
Joined: 09 Jul 2008
Location: malaysia
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Hi,
I would suggest you try earning money online through this great website
[edited]
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Wed Jul 09, 2008 1:04 am |
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shaneroof
Contributing Member
Cash: $ 9.20
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Joined: 16 Jul 2008
Location: washington dc
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Yes, I personally believe that you are right. I will pray to god that you get what you want.
God bless you!
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Tue Jul 22, 2008 3:07 pm |
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MyInvestmentSupportTeam
Member
Cash: $ 2.90
Posts: 14
Joined: 15 Jul 2008
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You may try to increase what you've got now. For example, bank deposits or investing. You may do it yourself or just ask for help in some special companies.
Liza
My-Investment.com Support Team
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Thu Aug 07, 2008 7:09 am |
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littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
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Put $1000.00 into an emergency saving account in case of a unexpected problem.
Next, PAY OFF ALL OF Y0UR DEBT. Smallest to largest.
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Mon Feb 09, 2009 10:15 pm |
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