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  1. #1
    la vache fantôme phantomcow2's Avatar
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    Am I investing my money the right way?

    Currently, about 80% of my financial value is invested into a 529 plan for college. As I understand it, this gives me a decent rate of return (in terms of interest), and is tax free IF I can prove the money is being withdrawn for educational purposes. A very tiny portion of my income is devoted to a 401k, and the rest is disposable. I think that the 529 plan is good because education is my immediate need (and financial drain). But I am wondering if there might not be another plan or investment strategy available that will give me a greater rate of return.
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  2. #2
    Senior Member permanentjaun's Avatar
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    Teach yourself how money works and where you can invest it. Real estate, stocks, bonds, cd's, commodities, mutual funds, hedge funds, futures, businesses ventures, stock purchase plans, etc..

  3. #3
    just over the next hill cruzMOKS's Avatar
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    Enjoy the ride.
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  4. #4
    Senior Member skiahh's Avatar
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    Quote Originally Posted by permanentjaun View Post
    Teach yourself how money works and where you can invest it. Real estate, stocks, bonds, cd's, commodities, mutual funds, hedge funds, futures, businesses ventures, stock purchase plans, etc..
    Uhhh, well, not so much real estate at the moment.

    Since you're in college, PC, seems to me you need to shift your investing to long term goals now, like saving for a down payment or for retirement. Doesn't really pay to put the funds into a 529 now only to take them out shortly to pay for school.

    That's my take, anyway.
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  5. #5
    Spelling Snob Hobartlemagne's Avatar
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    You should understand your immediate financial needs and your comfort zone.
    Start with at least 3 months of expenses in cash accounts in case of job loss.
    Move gradual in risk. Money Market and CD's first. You can get better rates for longer duration CDs.
    Some are as short as 6 months, others are a couple years. A Money Market account is like an interest paying checking account. Most want you to limit your transactions for better earning. I had one once that
    if I wanted to write a check out of it, the minimum was $200. These accounts dont lose value
    with the market.

    Next up- Mutual funds. Still on the conservative side. Money can be lost even in mutual funds.
    Do your homework before selecting one of these.

    The first rule of flats is You don't talk about flats!

  6. #6
    Air
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    Destroyer of Wheels Air's Avatar
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    I take a different take on money.

    Where do you want to be when you're 50? Work backwards.

    Putting 3k into a Roth per year for five years straight can lead to a significant nest egg if invested wisely. HOWEVER, since you're in school you may not have that kind of disposable income. The advantage to a Roth is that even though the money you put in is after taxes the money when you go to withdraw it at the time of retirement is tax exempt. You can invest in a number of different ways once your money is in that account and again those depend on your needs.

  7. #7
    pj7
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    Think about your long term future, that's my advice.
    I started saving for retirement when I was a teenager. Maxed out my 401k contribs as soon as I was able, and live off the little money I *don't* invest.
    I'll be retired by the time I hit 45 with a very hefty income.
    You'd be amazed at how easy it is to save a million dollars if you start young, and you never miss it.
    I am a sig Virus. Please put me in your sig so that I can continue to replicate.

  8. #8
    Senior Member permanentjaun's Avatar
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    Quote Originally Posted by skiahh View Post
    Uhhh, well, not so much real estate at the moment.
    It's a buyers market. Bottom might not have been found yet, but it's still time to look for opportunities. There are still places in the US where prices have risen. There is always money to be made in any market. You can make money on the way up and the way down.

  9. #9
    Senior Member StrangeWill's Avatar
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    I suggest the my wallet foundation.

  10. #10
    My name is Mike, not Cal
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    can you say Human Fund...money for people.
    "I got my lips chewed off by a dingo!" --David Letterman

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