| College Student Investment Advice |
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zarrel40
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 11 Mar 2010
Location: Oregon
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| College Student Investment Advice |
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Hey, so I really hope someone can help me with this. I've been really interested in investing for the past couple years. But I really don't know how to get my foot in the door. I've read multiple different 'How to's on beginning to invest but they all seem geared towards people who have graduated college and have a job and stability and all that stuff.
My dilemma is, I am a freshman in college without a career, so I have no 401k, and my insurance is covered by my parents right now, I can't afford a home to invest in, and I have no debt at all. SO, I really want to begin investing! I hear it all the time that people should start investing when they are young because it will help in the long run. But then I go looking for advice and there is none to be found!
I need help on where to start, I have about 500ish dollars in savings right now, my parents are paying for my first two years of college and rent. So I've got a year to invest while still being free of any obligation really.
Also, this spring and summer I am working and will be payed about 10,000 dollars, 8,000 of which I'd like to save/invest somehow, and then the following two summers I'll be earning about 14,000 which will be able to pay for my second two years. So I actually have a chance of leaving college with no debt what so ever, and if I can invest some money, I may have the chance to even leave college with investments.
So my question is, where should I start right now with that 500 dollars, and what should I do with the 5-8,000 that I want to invest this summer.
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Thu Mar 11, 2010 10:03 pm |
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Creditnet_com
Full Member
Cash: $ 10.65
Posts: 53
Joined: 22 Feb 2010
Location: Seattle, Washington
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First of all, kudos to you for wanting to be responsible so early in your adult life! Some college students get into a lot of financial troubles during those 4 years at school and find it hard to climb out after graduation. The best thing you can do for your future is save, spend responsibly, and even start building a credit history (always pay on time and in full).
The safest forms of investments would be CD's or money market funds (talk to your bank). If you're interested in playing around with the stock market, I recommend using Vanguard. They have options that are free and some at very low cost; when you're investing with a little money, the last thing you want to do is spend a large portion of it on fees! You can also call their toll-free number, tell the specialist your situation and goals, and hear what they can offer to you.
Good luck!
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Fri Mar 12, 2010 1:20 am |
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oldguy
Senior Member
Cash: $ 275.70
Posts: 1316
Joined: 21 May 2006
Location: arizona
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With $500 you can open an on-line account at Chas Schwab, or any similar on-line broker. I would recommend buying Spyders (symbol SPY) - they are traded like a stock, no minimum purchase. Spyders are a fund of the 500 major companies in the US, so it is internally diversified. You can add as much as you want whenever you want - and then later you can sell whatever you need for school. If you leave it invested for over one year, you get a tax break on your profit (so don't accidently sell a bunch at 11 months).
You are right about starting early - $10,000 at 11%/yr left for 40 yrs = $650,000. But if you start 5 years later, it will be only $385,000. Like Einstein said - compound interest is one of the most powerful mathematical equations.
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Fri Mar 12, 2010 1:38 am |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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Getting started is more important than the amount. Don't worry about it and just go for it. Most of the major investment companies (ie T Rowe, Vanguard, etc) will open an IRA for $0 initial and $50 a month or less. That would be a great way to get started in a small way. Best wishes!! 
~Tim~
Eye Candy : Why Whimsy
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Fri Mar 19, 2010 6:53 am |
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