Investment Advice for a College Student

Discussion in 'Community Discussion' started by ECUpirate44, Aug 30, 2011.

  1. ECUpirate44 macrumors 603

    ECUpirate44

    Joined:
    Mar 22, 2010
    Location:
    NC
    #1
    Hey everyone, I was hoping some of my wiser Macrumors buddies could give me some advice.

    I'm a 20 year old college student and I want to look into investing anywhere from 5-6K which I have made over the past few months working. I'm not a big spender and if I don't do something with this money, it is just going to sit in my savings account until after college so I figured i'd should do something with until then. I took a look at CD's, but with the interest rates so low, it doesn't seem like that route would make much sense. I'm open to stocks, but with the market as wary as it is right now, it makes me nervous. I'm really not interested in making a high risk, high reward investment either. Any advice you guys have would be greatly appreciated!
     
  2. Tomorrow macrumors 604

    Tomorrow

    Joined:
    Mar 2, 2008
    Location:
    Always a day away
    #2
    At your age, a Roth IRA makes sense. I'm assuming you want to park the money somewhere and let it build for many years, this might be the best way - and the earnings are tax-free.
     
  3. eawmp1 macrumors 601

    eawmp1

    Joined:
    Feb 19, 2008
    Location:
    FL
    #3
    Mattress.

    Seriously, Roth is the way to go in your situation for long term (i.e. retirement savings). You can manage yourself or park it in a muni fund (you can designate the risk/potential return).
     
  4. statik13 macrumors regular

    Joined:
    Jun 6, 2008
    #4
    If it was me, I'd set up a meeting with an investment banker. They should be able to assess your risk tolerance and help you choose your best investment vehicle.
     
  5. Mousse macrumors 68000

    Mousse

    Joined:
    Apr 7, 2008
    Location:
    Flea Bottom, King's Landing
    #5
    Pay off any debt you may have: Credit cards, mortgaged, car payments...anything. Once all your debts are paid, then you look to start saving. I find it astounding to hear about a college student without any debt.:cool::cool::cool:

    Being a student you'll need quick access to you $$$ for an emergency, so short term investments or saving is the best bet. Tying it up long term would be foolish if it lets debt pile up. Once you've got a steady income, then you can start thinking long term investment. My $0.02.
     
  6. steve2112 macrumors 68040

    steve2112

    Joined:
    Feb 20, 2009
    Location:
    East of Lyra, Northwest of Pegasus
    #6
    I agree with this. Instead of locking up all of it in an investment that you can't touch (without penalty), keep some of it around for emergencies. I would hold back 1-2k of it, then put the rest into something like a Roth IRA. Roths are amazing if you have a long time to wait, since it's all tax free growth. You still need some of it readily accessible, though, to handle anything that pops up, especially if you are getting close to graduation.
     
  7. ucfgrad93 macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #7
    Another vote for paying off any debt you might have. I would personally keep the rest in just a savings account until you finish college. You never know what sort of emergencies could crop up.
     

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