Imagine you're 20 and you have $20k to invest - what do you do?

[kscarrol]

Originally Posted by chenry

Ha I get it.... how I wish it were true (being 20) - while I do live in HB - not asking about me (updated my original post to make that more clear)

Just looking for opinions with the scenario I shared

Ah, misunderstood your original post... thought you were the 20 year-old! Good suggestions above, an index fund or a solid medium risk mutual fund and keep saving/adding to it! Once a good base is built then they can take some for more risky investments/trading.

Edit: I really was not passing judgement as I was fortunate enough to have my parents pay for my college allowing me to start my career debt free. Those who live in glass houses...

[wcr3d]

Uummm, just south of you?

[Penguino]

Originally Posted by chenry

in line with what I was thinking too - thnx

I've yielded 30% the past 3 years in MFs. Your $20K would be $30-$40K upon graduation.

Alternatively, it could also be $10K.

Since you are 20, no debt, and no student loans, etc. Let the money grow by itself and don't touch it. At age 30-35, pull it out and use it to buy a house cash, or a decent down payment.

[4Hockey4]

Originally Posted by ppointer

I would split that $20k four ways. With the first three quarters I would buy Apple, Amazon, and Tesla. With the last quarter think about a little gamble on Palantir. If you don’t want to gamble, go with Microsoft instead. Disclosure - I am not a professional investor or advisor, and I own shares of all of those companies I just listed. Come back to me in a year and we can compare notes.

again, literally ran investments for DC companies, hell my Dad makes higher % with dividend stocks. That wasnt the question.

I saved over $50K by moving conservative Sunday before spring crash.

I could make more, but world markets are getting more unstable, and I am happy with the 10%-15% per year, with very little risk. Stable is name of game now IMO.

[Smgs1992]

Buy a house. Friend was in a similar situation but with 50k from inheritance. He took part out for a downpayment on a truck for work and used the majority of the remaining money for a downpayment on his house

Forgot to mention he bought it for $170k and put about $30k into it and just sold it for $320k
(Houses are cheap in ohio so $300k+ Gets you a rather nice house)

[4Hockey4]

Also, as soon as Biden is official, and we get clarity on him locking down the country, ya better have your monies conservative...5K+ point drop, w/o the quick recovery

Cheers

[smyles]

Toilet paper.

[Maynard]

Everybody overbought TP already. I'd go with diapers. I forsee a big uptick in demand by Feb.

[XutvJet]

Open Roth IRA and buy $20K in Vanguard S&P 500 index funds. Period.

[upstatedoc]

Originally Posted by XutvJet

Open Roth IRA and buy $20K in Vanguard S&P 500 index funds. Period.

Psst, op said he was done with this thread

[M3Bimmer77]

Invest in stock market

[chassis]

One of the following, and let it ride for 30 years:

QQQ
MSEQX
FDGRX - closed to new investments but it is still available as a legacy choice in some retirement plan providers

[smyles]

Originally Posted by Maynard

Everybody overbought TP already...

yes, but

[roastbeef]

Originally Posted by chenry

A lot of smart people here...so I give you this scenario for feedback:

You're 20 (no it's not me)
You have managed to work and save $20k which is sitting in savings
You have $2500 in QQQ
You will graduate from college in 2024
Income between now and graduation is TBD (maybe another couple thousand after expenses)
No debt now or upon graduation

Next move is...?

I've already given my advice so I figure I'll throw the net out and see what others would recommend

use the money to pay off any debt, then invest 15% of the income in this priority- 401k to meet or exceed match, then a roth ira.

[bimmerfrk]

Originally Posted by roastbeef

use the money to pay off any debt, then invest 15% of the income in this priority- 401k to meet or exceed match, then a roth ira.

Put it all in At&T. Very high yield and very safe. From there just keep compounding.

[AutoAuto]

First and foremost, at age 20 I would immediately set up a Roth IRA. There are very positive long term tax benefits for someone starting early. It’s also a good incentive against spending the money.

If I had to pick one fund it would be a total stock market fund exchange traded fund.

I wish I knew this at age 20!