I'm 23. What should I do with $10,000 dollars?

[Ilikeshinythings]

Well, just like the title said, I need some advice as to what to do with some money I recently acquired. Any advice will be very appreciated. I understand it's easier to make money once you have money, so I would like to invest in some risky stocks. You all seem to be very smart and successful so I trust you will have some great advice! Thanks.

Dan K

 

[Marduke]

Personally, I'd play it safe and stick it in a 8-14 month CD (whichever has the best rate, 5+%).

....or more flashlights....

 

[Ken_McE]

Health insurance. Stocks and bonds. Begin retirement fund. Kill any outstanding debts. Maybe bump up your profesional qualifications. And splurge on one good light

 

[nerdgineer]

Take out $200 for mad money. Then go to the Vanguard site and check out their various mutual funds. Low fees and a solid reputation. Put the rest in an indexed stock and/or bond mutual fund (they have lots of mixes of these two).

Congratulations.

 

[Ilikeshinythings]

So far so good, I will check out the vanguard site. I definitely plan on talking to some of my business professors to find out their input. I want to buy a nice light but I should start a new thread for that!

 

[Oddjob]

Health insurance. Stocks and bonds. Begin retirement fund. Kill any outstanding debts. Maybe bump up your profesional qualifications. And splurge on one good light

+1. Good luck with your decision and whatever you end up doing with it.

 

[DonShock]

Dittos on the retirement fund. The time value of coumpound interest can do amazing things. Do some tests at any of the online retirement calculators. I recall seeeing an example once, I may have some of the numbers wrong but the basic idea is what matters, where $10K invested just once at age 20 would yeild the same retirement amount as a person who started investing $10K PER YEAR from age 50 until retirement.

 

[ernsanada]

Buy some shiny things!

 

[AFAustin]

I agree with nerdgineer 100% on Vanguard---the lowest fees, quality products, especially the index funds, and integrity. Start now and you will still be with them (and a lot richer) when you reach retirement age some day.

And Don Shock is right about the tremendous effects of compounding when you start saving at a young age. Here's the calculator I use: http://moneycentral.msn.com/investor/calcs/n_savapp/main.asp Run some numbers and you will be amazed.

 

[JohnR66]

First and foremost: Buy yourself a really nice flashlight.
Second: Payoff any high intrest debts, like credit cards and such. Not doing this and investing the money, may still yield net losses. Not smart.
Third: Invest. Don't go after the high risk investments. be smart with the money.
Fourth: Unless you have a major debt to pay, Take no more than 15% of that money and go enjoy yourself with it. Live a little today, but be ready for tomorrow.
FWIW, John

 

[BIGIRON]

Vanguard. In an indexed fund with multibalance. But I would lean more to the funds with significant offshore (China, India) components.

 

[Knifemaster]

Well you are still young so the best advice I can give you is to blow it all go on a trip to Europe or SA just have fun with it. When I was your age I went down to Mexico for 6 month and spend all my money on hookers and booze. I'm glad I did that because I had fun while I still could. These days i wouldn't have the health or the energy to do that but I managed to make much much more money. The problem is when you get older you can't enjoy it like you could when you were younger. Have fun :devil::nana:

 

[BIGIRON]

Not bad advice from knifemaster. Just depends on where you're heads at and where you want to go.

By conservatively investing some of it, you'll alway have your "f-you money" under the mattress (meaning you can more easily walk away from bad employment, relationships, etc). That's a freedom not many people enjoy.

 

[jasonsmaglites]

start a business.
the money can buy you some supplies and help you to live off of while you are picking up business.
mine almost never made it off the ground.
i went to my parents for money and got denied thinking i wouldn't stick to it.
thankfully i put $1500 in supplies on my cc and now five years later have a sucessful windshield repair and interior repair business catering to car dealers in d.c. area
just pick something you like or could do and go for it.
i was your age when i started mine and would never turn back.

 

[Knifemaster]

Not bad advice from knifemaster. Just depends on where you're heads at and where you want to go.

By conservatively investing some of it, you'll alway have your "f-you money" under the mattress (meaning you can more easily walk away from bad employment, relationships, etc). That's a freedom not many people enjoy.

Ok 5K fun 5K savings :devil:

 

[chesterqw]

giving them to me may be a good way after all j/k

maybe just spend a little and save them in the bank...

 

[lctorana]

$3000 in cash investments - term deposts, etc
$7000 in blue-chip shares.

 

[jtr1962]

If you have any outstanding high-interest debts pay those off first, then put as much as you can in a Roth IRA. I think you can put in a maximum of either $4K a year, or your earned income, whichever is less. Invest the IRA money in a couple of decent mutual funds. After the initial $10,000 runs out, continue investing the maximum annually in a Roth IRA from your other income. The money will grow tax-free, and you will be able to take it out tax-free starting at age 59 and a half. If you do this consistently for your entire working career, you should retire a multimillionaire.

 

[Groundhog66]

You're still young, it ALL needs to be spent on Women, Booze and Toys. After it's all gone, you can spend some time wishing you invested it more wisely.

 

[Mike M]

Buy a light, pay off and CC debt and put the remainder in an etrade complete savings account. It is high yield (5.1%) and safe.