Advertise on Bikeforums.net



User Tag List

Page 1 of 2 12 LastLast
Results 1 to 25 of 34
  1. #1
    '05 NUEser EJ123's Avatar
    Join Date
    Aug 2005
    Posts
    3,374
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    I turn 20 in a few days; how should I invest money?

    I have a summer job that pays 7.25/h. Working 5 hour shifts, 5 days a week, with possibly working into the fall semester at school I would really want to begin investing... preferably with an IRA.

    I'm confused as to which brokerage would best suit my needs. I'm not making a lot of money, nor do I have much to initially pay if I open up an IRA, regardless whether it's a traditional or Roth. I could probably surrender $50 a month.

    I also have $43k of student loans with variable interest rates, and I have two more college years left, plus graduate school (hopefully physical therapy school!)

    Anyways, if any college students/financial people here have input, I'd GREATLY appreciate it. Apparently when I turn 21 I will receive some international index fund from a relative who has died...not sure what I'll do with that or how much is invested. Thanks guys.

  2. #2
    Senior Member
    Join Date
    Apr 2007
    Location
    Minneapolis, MN
    Posts
    176
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    $43k in student loans and you still have two years left? Wow. Granted, I went to college 10 years ago, but I think all four years of school, 100% on loans, totalled less than $18k!

    Anyway, back to your post: Uhhhh... I am just glad you are looking at investing instead of just letting money sit around in a savings account, earning less interest than the rate of inflation.

  3. #3
    Hey guyz? Guyz? Wait up!! Siu Blue Wind's Avatar
    Join Date
    Apr 2005
    Posts
    10,547
    Mentioned
    1 Post(s)
    Tagged
    0 Thread(s)
    20? TWENTY??? Not our little EJ!!
    Quote Originally Posted by Buddha
    We are what we think. All that we are arises with our thoughts. With our thoughts, we make the world.
    Quote Originally Posted by making View Post
    Please dont outsmart the censor. That is a very expensive censor and every time one of you guys outsmart it it makes someone at the home office feel bad. We dont wanna do that. So dont cleverly disguise bad words.

  4. #4
    Senior Member
    Join Date
    May 2008
    Posts
    1,215
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Invest in paying off those loans. Unless you can make a higher percentage on your money than the interest you are paying on your loans, it is the best investment you have.

  5. #5
    Packfodding 3 caloso's Avatar
    Join Date
    Jul 2002
    Location
    Sacramento, California, USA
    My Bikes
    Ridley Excalibur, Gazelle Champion Mondial, On-One Pompino, Specialized Rock Hopper
    Posts
    30,272
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Dan The Man View Post
    Invest in paying off those loans. Unless you can make a higher percentage on your money than the interest you are paying on your loans, it is the best investment you have.
    Concur.
    Cyclists of the world, unite! You have nothing to lube but your chains!

  6. #6
    Peloton Dog patentcad's Avatar
    Join Date
    Nov 2005
    Location
    Chester, NY
    My Bikes
    2013 Scott Foil, 2009 Scott Addict R2, 2008 Cervelo P3 TT bike, 2008 Motobecane Fly Ti Hard Tail MTB
    Posts
    56,331
    Mentioned
    36 Post(s)
    Tagged
    1 Thread(s)
    Buy AAPL and forget about it.

    Thank me when you turn 25. If I'm not dead.

  7. #7
    Free @coasting RUOkie's Avatar
    Join Date
    May 2009
    Location
    In a Haggard Song
    My Bikes
    2009 ORBEA Onix Rival. 2012 Felt Breed, 1999 Raleigh 500
    Posts
    10,524
    Mentioned
    92 Post(s)
    Tagged
    2 Thread(s)
    Quote Originally Posted by patentcad View Post
    Buy AAPL and forget about it.

    Thank me when you turn 25. If I'm not dead.
    Funny, I thought you were already undead.
    Quote Originally Posted by Herbie53 View Post
    Being full of crap and depositing it here consistently is really nothing to be proud of.

  8. #8
    Senior Member mikeybikes's Avatar
    Join Date
    May 2009
    Location
    Edgewater, CO
    My Bikes
    Tons
    Posts
    3,214
    Mentioned
    2 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Dan The Man View Post
    Invest in paying off those loans. Unless you can make a higher percentage on your money than the interest you are paying on your loans, it is the best investment you have.
    I agree. Keep some money in a savings account for a rainy day (specifically, one of them online savings accounts that have okay interest rates), and focus on paying off student loans.
    My Bikes: 2010 Breezer Uptown EX | 1980 Miyata 610 | 1970 Hercules | 198? Miele ?
    Wife's Bike: 2008 Globe City 7

    My Blog, a mix of bicycling, tech, and family.

  9. #9
    Senior Member
    Join Date
    Apr 2009
    Location
    Vancouver, BC
    Posts
    127
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Spend it on having a good time while you still can. You're too young to worry about investments. I don't know many people that look back and wished they had saved more money when they were twenty. If you were talking about enough money to pay a mortgage or something, it would be different, but $50/month for the next couple years won't make much of a difference, regardless of what Rich Dad Poor Dad tells you.

  10. #10
    Free @coasting RUOkie's Avatar
    Join Date
    May 2009
    Location
    In a Haggard Song
    My Bikes
    2009 ORBEA Onix Rival. 2012 Felt Breed, 1999 Raleigh 500
    Posts
    10,524
    Mentioned
    92 Post(s)
    Tagged
    2 Thread(s)
    Quote Originally Posted by Just_Ryan View Post
    Spend it on having a good time while you still can. You're too young to worry about investments. I don't know many people that look back and wished they had saved more money when they were twenty. If you were talking about enough money to pay a mortgage or something, it would be different, but $50/month for the next couple years won't make much of a difference, regardless of what Rich Dad Poor Dad tells you.
    I can't believe I'm saying this, but I agree 100%. Yeah sure, try to pay off your loans, but have a little fun while you are still young enough not to give a shyte.
    Quote Originally Posted by Herbie53 View Post
    Being full of crap and depositing it here consistently is really nothing to be proud of.

  11. #11
    Senior Member
    Join Date
    Jun 2009
    Posts
    337
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    I think it's good to get into the habit of long-term investing at that age, but not to ruin the fun.

    College loans aren't evil if they're at a low rate. I'm no investor but I'd follow this simple formula for a ten year plan, less if you're earning some good coin.

    #1 build up safety cash, start long-term investing...something...anything
    fast #2 kill the higher interest debt
    #3 build more cash and make more longer-term investments after killing all debt (aside from mortgages etc...)
    #4 think about building wealth including higher risk investments

    Investing is a habit as much as anything else. Once you see the power of compounding interest you'll be hooked, assuming the market doesn't tank again.

    At your age I didn't think I could surrender any of my paycheck to my future. But now, 19 years later I regret not doing so.

  12. #12
    long time visiter Alfster's Avatar
    Join Date
    Oct 2005
    Location
    SW Ontario
    My Bikes
    2005 Trek 6700 disc 2007 Orbea Onix 2009 Raleigh One Way
    Posts
    586
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by patentcad View Post
    Buy AAPL and forget about it.

    Thank me when you turn 25. If I'm not dead.
    Not sure if you're joking or not, however it's not a bad idea. Personally I would opt for a large cap energy stock and let it sit for a decade.

  13. #13
    la vache fantôme phantomcow2's Avatar
    Join Date
    Aug 2004
    Location
    NH
    Posts
    6,266
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    If you want to invest and not blow it on alcohol now, pay off those loans that are accruing interest now!
    C://dos
    C://dos.run
    run.dos.run

  14. #14
    Senior Member DannoXYZ's Avatar
    Join Date
    Jul 2005
    Location
    Saratoga, CA
    Posts
    11,507
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Doesn't student-loans not accrue interest while you're still in school? At least that's how it was for me. In which case, it's not costing you anything to carry those loans. Put your money in something that's earning instead and when you get out of school, there's a grace period before the interest starts to build. At which point, set up a new plan to pay off the loans if your investments aren't earning as much as the interest on the loans (not likely).

  15. #15
    Grillparzer Grillparzer's Avatar
    Join Date
    Aug 2009
    Location
    Silver Spring, MD
    My Bikes
    Surly Cross Check
    Posts
    521
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Don't overlook the many benefits of booze, drugs, and loose women...at any age.
    Last edited by Grillparzer; 06-01-10 at 08:19 PM. Reason: Censorship
    People are broad-minded. They'll accept the fact that a person can be an alcoholic, a dope fiend, a wife beater and even a newspaperman, but if a man doesn't drive, there's something wrong with him.

  16. #16
    Peloton Dog patentcad's Avatar
    Join Date
    Nov 2005
    Location
    Chester, NY
    My Bikes
    2013 Scott Foil, 2009 Scott Addict R2, 2008 Cervelo P3 TT bike, 2008 Motobecane Fly Ti Hard Tail MTB
    Posts
    56,331
    Mentioned
    36 Post(s)
    Tagged
    1 Thread(s)
    Quote Originally Posted by Alfster View Post
    Not sure if you're joking or not
    I'm always joking. That being said, I own a load of APPL and I'm not selling it. Yet.

    I think APPL doubles in the next five years. Or sooner.

  17. #17
    location:northern Ohio
    Join Date
    Jul 2006
    Posts
    3,568
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by patentcad View Post
    Buy AAPL and forget about it.

    Thank me when you turn 25. If I'm not dead.
    Sure,thats the sincere safe mainstream old geezer advice.

    Let's step back 30+ years and reevulate this.
    This kid will look back on missed college shinanigans the rest of his life.Everyone has student loanes unless you give blood to the University Athletic Dept.
    Keep the gpa up,spend the extra money one booze ,broads,and an occasional toga party and enjoy your college days.
    --------------------------------------------------------------------------------

  18. #18
    Senior Member mikeybikes's Avatar
    Join Date
    May 2009
    Location
    Edgewater, CO
    My Bikes
    Tons
    Posts
    3,214
    Mentioned
    2 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by DannoXYZ View Post
    Doesn't student-loans not accrue interest while you're still in school? At least that's how it was for me. In which case, it's not costing you anything to carry those loans. Put your money in something that's earning instead and when you get out of school, there's a grace period before the interest starts to build. At which point, set up a new plan to pay off the loans if your investments aren't earning as much as the interest on the loans (not likely).
    Depends on the loan. Many loans do in fact accrue interest while payments are deferred.
    My Bikes: 2010 Breezer Uptown EX | 1980 Miyata 610 | 1970 Hercules | 198? Miele ?
    Wife's Bike: 2008 Globe City 7

    My Blog, a mix of bicycling, tech, and family.

  19. #19
    la vache fantôme phantomcow2's Avatar
    Join Date
    Aug 2004
    Location
    NH
    Posts
    6,266
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by DannoXYZ View Post
    Doesn't student-loans not accrue interest while you're still in school? At least that's how it was for me. In which case, it's not costing you anything to carry those loans. Put your money in something that's earning instead and when you get out of school, there's a grace period before the interest starts to build. At which point, set up a new plan to pay off the loans if your investments aren't earning as much as the interest on the loans (not likely).
    To those who say to have fun in college: I don't think anybody is suggesting otherwise. If you have money you want to invest, your best bet is chipping away at loans. I don't think it's been suggested to not buy any beer filled red cups etc.

    Unsubsidized stafford and all private loans accrue interest in school; unsubsidized loans -- for which you're heavily limited to how much you may borrow -- do not. Unfortunately for the OP, he's probably got no more than 8000 in unsubsidized loans.
    C://dos
    C://dos.run
    run.dos.run

  20. #20
    Senior Member
    Join Date
    Apr 2009
    Location
    Vancouver, BC
    Posts
    127
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by phantomcow2 View Post
    To those who say to have fun in college: I don't think anybody is suggesting otherwise. If you have money you want to invest, your best bet is chipping away at loans. I don't think it's been suggested to not buy any beer filled red cups etc.
    There is always more fun to be had.

    (I agree with your logic, but I would still spend it on beer)

  21. #21
    slow as I ever was Ex Pres's Avatar
    Join Date
    Dec 2007
    Location
    an imposter living in the 35223
    Posts
    5,780
    Mentioned
    5 Post(s)
    Tagged
    0 Thread(s)
    Hokie Hokie Hokie-Hi
    IEOR'80 here
    Spend your money curing hangovers with a greasy burger from the Hokie House (does it still exist?)

  22. #22
    Bring May Flowers aprilm's Avatar
    Join Date
    May 2007
    Location
    Soon to be South Carolina!
    My Bikes
    '10 Kuota Kebel
    Posts
    961
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Just_Ryan View Post
    Spend it on having a good time while you still can. You're too young to worry about investments. I don't know many people that look back and wished they had saved more money when they were twenty.
    How old are you? Because I know PLENTY of people who regret spending their days in college partying. This "Oh, I'll deal with it later" attitude is the reason so many people are in debt right now.

  23. #23
    You Know!? For Kids! jsharr's Avatar
    Join Date
    Apr 2005
    Location
    Just NW of Richardson Bike Mart
    My Bikes
    '05 Trek 1200 / '90 Trek 8000 / '? Falcon Europa
    Posts
    6,117
    Mentioned
    12 Post(s)
    Tagged
    3 Thread(s)
    Hey EJ! Follow Pcads' lead, buy Apple.
    Are you a registered member? Why not? Click here to register. It's free and only takes 27 seconds! Help out the forums, abide by our community guidelines.
    Quote Originally Posted by colorider View Post
    Phobias are for irrational fears. Fear of junk ripping badgers is perfectly rational. Those things are nasty.

  24. #24
    Riding Heaven's Highways on the grand tour ModoVincere's Avatar
    Join Date
    Aug 2006
    Posts
    1,676
    Mentioned
    4 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by patentcad View Post
    I'm always joking. That being said, I own a load of APPL and I'm not selling it. Yet.

    I think APPL doubles in the next five years. Or sooner.
    If, by doubles, you mean goes to $1/share? I think you are correct.
    1 bronze, 0 silver, 1 gold

  25. #25
    Senior Member
    Join Date
    Apr 2009
    Location
    Vancouver, BC
    Posts
    127
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by aprilm View Post
    How old are you? Because I know PLENTY of people who regret spending their days in college partying. This "Oh, I'll deal with it later" attitude is the reason so many people are in debt right now.
    Those people were doing it wrong. I'm 29. I'm not suggesting he take up competitive binge drinking.

    I'm not even saying he should spend it on partying. Just have a good time. If you're already having a good time, save it for an extra good time when you need it, because you will if you're going straight to a grad program. It's just my two cents.

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •