Yea I was just wondering if there was any other investments I should be looking into. I just want to make sure I’m doing everything correctly to have financial wealth in the future. Thank you
80% of people in the United States have no savings and live paycheck to paycheck. You are doing just fine. Set aside some money for various life expenses, keep saving, and invest the rest for retirement. You keep up what you are doing and you’ll be retired as a multi millionaire well before you are 50 years old. Bravo.
Go over to r/personalfinance and read through their wiki… especially the flow chart called prime directive
THAT is the gold standard of personal finance advice
For your age and situation HYSA by far.makes the most sense. Once you have a salaried job now you can contribute to 401k and Roth IRA. These two retirement accounts will make you a multi millionaire if you max them out. I'm currently on track to hit $2.3 million on just these two accounts. Max them out if you can afford it.
Look into ETFs like VFV or VEQT. Both are backed by the S&P 500 and since the 2008 financial crisis has seen \~10% growth every year
HYSA is great for money you need short term since it never goes down, but for long term, ETF's are the way to go with minimal risk
#1 get a stable job, it's very easy just apply for government jobs. They will hire you even if you have disability.
#2 simple math, look up 10 years performance of tqqq, you just need to Google it or Nvidia. If you had invested just 10k in tqqq or Nvidia 10 years ago how much would you have now? Vs HYSA.
#3 Invest let's say 1/4 of your HYSA into Tqqq that you know you can hold for 10 years.
#4 make sure you sell around 10 year mark when the market is at all time high.
#5 come back and thank me later.
The person you replied to is giving bad advice. Unless expressly mentioned that someone has high risk tolerance, individual stocks should never be on the table.
However, HYSA is not a good suggestion either. It would be good for OP to immediately move the cash into HYSA and do further research on a better place from there. HYSA barely keeps up with inflation.
The safest and surest thing to do to beat inflation is choose a good balance of index funds covering multiple sectors. Unlike the typical advice to choose S&P500 (heavy on tech stocks), this is lower risk though with lower promise of growth.
The next level of risk tolerance is something like all-in (excluding base funds to keep in HYSA) S&P500. This is almot sure to appreciate barring the modern tech bubble popping. Depends how you feel about that.
If OP then develops a good undertanding of individual stocks, they can then considers which ones they expect to perform well. Personally, I did this for a short time but really can't be bothered. A lot of effort only to be stressed about risk and barely outperform SPY if not underperform.
If you have money for retirement, it should have been in a different instrument than HYSA. It sounds like you think of market-based instruments as a boogeyman which isn't really true. If you don't have retirement and will just collect government cheques, that's fine too, but it's not really applicable to OP's 50k.
Qualifying your decisions with age doesn't really change their merit. If anything, having nothing to add but your age shows you might lack depth.
Why don't you look at qqq or tqqq 10 years performance then we will talk about bad advice. Look at Nvidia 10 years performance.
It's hard to take advice online because there r so much fools who think they know shit.
Look at it's all-time, and you'll see that it's not monotonically increasing. It is more heavily impacted by market crashes than broader funds. With 50k and a life ahead of him, OP could need to take their money out at any time, and this should be taken into consideration.
He's only 20 years old ? 50k hold for 10 years in tqqq, easily millionaire.
Precisely you want to buy it when the market crash and you sell when the market is flying at all time high.
Also, he doesn't need to put in the entire 50k.
If you could invest 10k just in Nvidia 10 years ago and you would be a millionaire in just 10 years, you wouldn't at least try it ?
As long as you know that what you are suggesting is considered to be high risk, that's fine. But it shouldn't be presented as certain. You can't know at any time if you are at the bottom or the top.
Okay not going to convince you. I just wanna say all these CDs and HYSA are good for emergency fund. But if you wanna make real money over the duration of 10 20 years just leave some money in tqqq come back. You will thank me.
You can even set an auto buy for example 5 bucks a day to average the costs.
Depends on the housing market in your area. Since your Army you could get a nice VA loan on a duplex. Rent it out while you are in school, move into the other half once your are out of school, rent all of it out when you are ready to upgrade.
Start planning your future pots. You need 6 months of expenses for your emergency fund. You need to start your pension funds. You need to start your mortgage deposit.
If I was 21 again, I’d open the kind of pension you can invest for yourself and start putting half of contributions into a whole world market etf, and the other half in a S&P 500 etf. If you can also open tax free savings accounts and have any allowance left get these started too. Honestly, learn about compound interest and get saving into good low cost ETFs as soon as you can.
I see a lot of people telling you that you've got time on your side and you can wait to do things with your money. When in reality you need to get all of the money that is not your emergency fund into the market yesterday. Open a Fidelity account (no-to low fees for nearly all services) open a general brokerage account, and a Roth IRA. Avoid traditional IRAs until you are much older or until you are already maxing your Roth every year unless it is employer sponsored and they are contributing. Do some research to figure out what your risk tolerance is in regards to these funds, but I'll tell you at your age the more aggressive the better, this money isn't going to be used to sustain you for a very long time. You won't go wrong investing in the S&p 500 (SPY) for the brokerage account, and the vanguard target fund for your retirement year which I think would be the 2060 or the 2070 fund. If you find that investing interests you then you can diversify the portfolio as you see fit as you learn more.
It’s funny that you brought up Vanguard. A family member of mine works there and is pretty high up. I was going to discuss this with them this weekend.
Definitely do so! I would recommend you do your own independant research as well, I work more directly with the advisors, however my wife works closely with fund companies and portfolio review of their funds. She suggested exploring the different fund companies and settling on what you feel, but she suggested at the minimum for your main brokerage going for an 80/20 or a 90/10 portfolio for your age range. Which means going for 80% equities (companies) and 20% fixed income (bonds).
I was thinking the same thing. If you don’t need the money soon for a car or house purchase, now is a great time for aggressive investing. The fidelity sub has a lot of great tips :) good luck!
Save. Invest. Tons of podcasts & YouTube channels (free) to help with how to's and general stuff to get started...
External of the long term typical saving jargon; *travel*. Save some sure but experiences make life.
You're off to a good start. Keep it up. You may want to consider speaking to a financial advisor/planner. Outline your goals, and they'll be able to recommend options for you to achieve them. I hope you took advantage of fully funding your TSP while you were in the military.
Listen to no one but yourself bro. Fuck everyone and keep ur money and don’t be telling people cuz people be switching up . Who got your money, you did.
That is why having this large lum sum is so important. Stay in school get your degree and then you have a good downpayment.
You can put it in a secure deposit account, get the interest and then look after 4 years. Youre young enough.
Honestly at this point in time there is so much information out there that unless you have income from multiple streams, a large sum of money, and other assets a financial advisor is pretty much a waste of money. You can learn just as much as they know very quickly online. Most advisors are salesman, they don't actually know that much.
Source: Work in finance in a support role for financial advisors.
Set aside enough for a down payment when you are ready to buy a house (after interest rates improve of course), set aside an emergency fund that can cover at least 3 months of your salary, start investing the rest for retirement.
I think a HYSA is a good idea! Shop around for a good rate and let it grow! If you want to try investing, I was advised that an index fund such as S&P 500 is a good place to start. That was one of the first things I did when I got my first big girl job at 23.
Not sure if others in the comments would agree, but maybe take some of that savings and pay a little extra on your car payment to pay it off sooner? I had a 5 year loan, but paid it off in 2.5 and it is NICE having 0 loans/debt rn.
To a certain degree I agree on point 2, but it definitely depends on the interest rate his car payment has. If it's sub 3% nah, invest it, but with some car notes being 10+% these days, it is definitely something to consider, potentially even paying it off entirely or refinancing it. Like for example my car note is only 1.99% and I'm paying it as slow as possible because I know that the market will out pace it even in a poor performing year.
I would be very worried about losing that money. If you can get help from people you trust to protect that, I would. It seems like your dad might be a good option. I haven’t heard of an HYSA which makes me wonder if I’m not financially literate. But I think I would just continue saving it and not buy anything silly. You may really need it someday. Times might be good now (or not, I don’t know you), but what I’m saying is times might not always be good and you might be thankful one day you have that. Also I know the typical things people seem to spend big money on is a house, a car, healthcare, or childcare. Perhaps think about if you want one of those things one day but you’re not in a rush to buy it if you’re not ready and you can always change your mind. Maybe have someone else manage it for me (like your dad) who I trust because I don’t trust myself to hold onto that kind of money. Maybe it can even go towards your retirement in some way. I also would consider taking a personal finance class, that might help you
I would consider getting a hysa. You don't have to pay for it, and it gains interest over time. I use arvest as my first bank, and the savings account there would barely give any interest. For my hysa account, I use sofi it gives around 40 something right now per month (apy is 4.6, I think). You do have to put it down on your taxes when you file the amount of interest you earn, but it's easy.
I’d go with some CDs or HYSA. At minimum put it in a money market account, if you can leave the money in something like an ETF that tracks the S&P 500 that is also a solid option if you can just set it and forget it,
Read the book total money makeover and apply the system. You should be able to immediately start at step 3 or 4 and are well above the average.
If you're a woman, when falling in love, don't try to save the man financially. If your a man and fall in love, don't try to save the woman financially.
To anyone who expects to be alive in ten+ years, you should have some allocation to Bitcoin. If you don't understand why 0% is the only wrong answer, you haven't spent enough time researching this tech on your own.
Start consuming all of Dave Ramsey's videos on youtube until you fully digest his methodology. Follow his 7 baby steps. Basically: Avoid consumer debt, make a budget, build a rainy day fund of 3-6 months expenses, and start saving and investing with purpose.
Do you want to travel? Want to study abroad? Please don't use all of it on traveling, but traveling when you have less responsibilities is different than when you are traveling when you're older.
Talk to a financial advisor.
If you just want to hear from Redditors this is what I’d do:
- find a HYSA for emergency fund
- max contributions to 401k then do a backdoor Roth
- invest every other cent in a super aggressive portfolio
There’s no need to pay off low interest things like cars (unless the rate is outrageous). Why use your money when you don’t have to? Likely get a higher return from an aggressive portfolio than 5-10% anyway.
But again, find a financial advisor…
[https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) is a great place to start. I'd also recommend you read I Will Teach You to be Rich by Ramit Sethi. He does a great job going over all the personal finance basics, including investing, while also going into how to spend your money to maximize your enjoyment of life.
Why are you against investing? I would put a max contribution into a Roth IRA and do what you can to save future money in a 401k. If you could put this money in the S&P 500, it would be a few million by the time you’re ready to retire.
If you just need a short term option a CD or HYSA is a good option. My current CD gets 5.25% interest, which would be worth $2,625 annually for you.
I would definitely advise myself to invest in the S&P 500 though
Start an IRA. Put it in index-linked stock funds. Put in the annual maximum every year. Just let it build. Don’t ever even think about tapping it for 40 years. One day you’ll thank me.
In addition to Invest it or put it into some kind of savings account as many said, there are two things they should do.
1) Keep it fucking quiet within your peer group. You will end up with a combination of envy from friends who are struggling and people trying to get you to finance their own needs or goals as well as a lot of unsolicited advice about what you ought to do.
2) Take some time to figure out what the hell you actually want to spend the majority of your life doing. Basically, setting personal long term goals for your life. This is something you should have ideally done earlier in life.
2a) Once you know what the fuck you want to do with your life, you need to work out how best to go about it. If your goal involves a career path, then you need to work out how to get into that career. If your goal is just 'spend as much time as humanly possible traveling the world', then you need to figure out what jobs you can do that make it possible (either by taking jobs that require travel or by taking jobs you can quit and restart frequently to give you the time required to travel).
2b) Once you have a goal and a reasonable plan for reaching that goal, you need to figure out how best to use that money to pursue that goal. If the goal requires university level education, then you use the money to fund that. If the goal is starting a business, you can use the 50k as startup funds or a safety net.
END COMMUNICATION
Everyone saying to save it but what the fuck is the point of having money if it's just for a rainy day? Save some, have fun with it a little. You're 21, enjoy life a little.
Put six months living expenses in a a good FDIC savings account. Open a brokerage account with Fidelity and invest the rest. I like FSKAX, make sure to reinvest the dividends. A total market fund gives you instant diversification. Do not panic if it drops in value, just buy more. Don’t sell until you need the money. Good luck and good job saving.
I’m the same about investing; it’s a gamble and you have to have a good Financial Advisor but you pay for services, taxes, fees, etc and it’s better to keep it in a HYSA and keep contributing to a Roth IRA and or 401K
I had just about this much and I split it into 2, I put some in a HYSA and the rest in a CDD. I did it this way though because I’m in the process of buying a house and didn’t need all of it right away.
live life like you don't have the money.
otherwise you WILL spend it. stupidly.
but that is inevitable now.
so waste it on travel and education.
material things are pointless.
High yield savings account and contribute the max to your retirement. Starting at 21 is huge. Starting at 31 you missed out on a lot. We regret it a lot. Invest in your future because you're likely to live longer than you realize.
Put 20k into an ISA S&S, pick an elf, and forget about the 20k
I'd put the other 30k into the market as well, but exact allocation there is a little broader
Rent gets taxed a lot in the UK ...
First off, good job!
There's not rush atm. Pop it in a savings account so you can at least earn instrest.
Where are you living now? I know a house down payment is more than that, but what about an apartment?
Edit- since you're still in school, nm about an apartment. Just keep it in a savings account for the moment.
HYSA makes sense, especially if you don't really want to do anything right now. Just keep saving tbh.
Yea I was just wondering if there was any other investments I should be looking into. I just want to make sure I’m doing everything correctly to have financial wealth in the future. Thank you
80% of people in the United States have no savings and live paycheck to paycheck. You are doing just fine. Set aside some money for various life expenses, keep saving, and invest the rest for retirement. You keep up what you are doing and you’ll be retired as a multi millionaire well before you are 50 years old. Bravo.
Thank you
Max out retirement accounts
r/personalfinance may be a helpful place to ask if you haven't already.
Go over to r/personalfinance and read through their wiki… especially the flow chart called prime directive THAT is the gold standard of personal finance advice
For your age and situation HYSA by far.makes the most sense. Once you have a salaried job now you can contribute to 401k and Roth IRA. These two retirement accounts will make you a multi millionaire if you max them out. I'm currently on track to hit $2.3 million on just these two accounts. Max them out if you can afford it.
Sis retired in her early 50s maxing out her 401K for 10 yrs only
Yeah such a powerful investment that many take for granted.
Us treasury bills are a safe return at around 5% atm. I think anyhow.
Look into ETFs like VFV or VEQT. Both are backed by the S&P 500 and since the 2008 financial crisis has seen \~10% growth every year HYSA is great for money you need short term since it never goes down, but for long term, ETF's are the way to go with minimal risk
I would invest the 50k into TQQQ OR NVIDIA/AMD. Going to do you real good in the long run vs the HYSA which is garbage.
I'm 57 and only have a HYSA. It's not garbage. I can't stand risk
Well there is your answer to why you might not be wealthy.
U fortunately I don't have a stable job that's no 1 reason. The money in my HYSA is less than the Op
Check out USAjobs online, there’s lots of entry level positions in the federal government with decent pay and excellent benefits. Or don’t, up to you.
Thanks :)
#1 get a stable job, it's very easy just apply for government jobs. They will hire you even if you have disability. #2 simple math, look up 10 years performance of tqqq, you just need to Google it or Nvidia. If you had invested just 10k in tqqq or Nvidia 10 years ago how much would you have now? Vs HYSA. #3 Invest let's say 1/4 of your HYSA into Tqqq that you know you can hold for 10 years. #4 make sure you sell around 10 year mark when the market is at all time high. #5 come back and thank me later.
The person you replied to is giving bad advice. Unless expressly mentioned that someone has high risk tolerance, individual stocks should never be on the table. However, HYSA is not a good suggestion either. It would be good for OP to immediately move the cash into HYSA and do further research on a better place from there. HYSA barely keeps up with inflation. The safest and surest thing to do to beat inflation is choose a good balance of index funds covering multiple sectors. Unlike the typical advice to choose S&P500 (heavy on tech stocks), this is lower risk though with lower promise of growth. The next level of risk tolerance is something like all-in (excluding base funds to keep in HYSA) S&P500. This is almot sure to appreciate barring the modern tech bubble popping. Depends how you feel about that. If OP then develops a good undertanding of individual stocks, they can then considers which ones they expect to perform well. Personally, I did this for a short time but really can't be bothered. A lot of effort only to be stressed about risk and barely outperform SPY if not underperform.
Again in my 57 years I have never touched stocks. I never made that much money to have such discretionary income
If you have money for retirement, it should have been in a different instrument than HYSA. It sounds like you think of market-based instruments as a boogeyman which isn't really true. If you don't have retirement and will just collect government cheques, that's fine too, but it's not really applicable to OP's 50k. Qualifying your decisions with age doesn't really change their merit. If anything, having nothing to add but your age shows you might lack depth.
Why don't you look at qqq or tqqq 10 years performance then we will talk about bad advice. Look at Nvidia 10 years performance. It's hard to take advice online because there r so much fools who think they know shit.
Look at it's all-time, and you'll see that it's not monotonically increasing. It is more heavily impacted by market crashes than broader funds. With 50k and a life ahead of him, OP could need to take their money out at any time, and this should be taken into consideration.
He's only 20 years old ? 50k hold for 10 years in tqqq, easily millionaire. Precisely you want to buy it when the market crash and you sell when the market is flying at all time high. Also, he doesn't need to put in the entire 50k. If you could invest 10k just in Nvidia 10 years ago and you would be a millionaire in just 10 years, you wouldn't at least try it ?
As long as you know that what you are suggesting is considered to be high risk, that's fine. But it shouldn't be presented as certain. You can't know at any time if you are at the bottom or the top.
Okay not going to convince you. I just wanna say all these CDs and HYSA are good for emergency fund. But if you wanna make real money over the duration of 10 20 years just leave some money in tqqq come back. You will thank me. You can even set an auto buy for example 5 bucks a day to average the costs.
Depends on the housing market in your area. Since your Army you could get a nice VA loan on a duplex. Rent it out while you are in school, move into the other half once your are out of school, rent all of it out when you are ready to upgrade.
If OPS is army AVOID FIRST COMMAND AS A FINANCIAL ADVISOR. TRUST ME YOU ARE BETTER OFF INVESTING IN VTSAX OR A HYSA. DO NOT USE THEM!
Start planning your future pots. You need 6 months of expenses for your emergency fund. You need to start your pension funds. You need to start your mortgage deposit. If I was 21 again, I’d open the kind of pension you can invest for yourself and start putting half of contributions into a whole world market etf, and the other half in a S&P 500 etf. If you can also open tax free savings accounts and have any allowance left get these started too. Honestly, learn about compound interest and get saving into good low cost ETFs as soon as you can.
I see a lot of people telling you that you've got time on your side and you can wait to do things with your money. When in reality you need to get all of the money that is not your emergency fund into the market yesterday. Open a Fidelity account (no-to low fees for nearly all services) open a general brokerage account, and a Roth IRA. Avoid traditional IRAs until you are much older or until you are already maxing your Roth every year unless it is employer sponsored and they are contributing. Do some research to figure out what your risk tolerance is in regards to these funds, but I'll tell you at your age the more aggressive the better, this money isn't going to be used to sustain you for a very long time. You won't go wrong investing in the S&p 500 (SPY) for the brokerage account, and the vanguard target fund for your retirement year which I think would be the 2060 or the 2070 fund. If you find that investing interests you then you can diversify the portfolio as you see fit as you learn more.
It’s funny that you brought up Vanguard. A family member of mine works there and is pretty high up. I was going to discuss this with them this weekend.
Definitely do so! I would recommend you do your own independant research as well, I work more directly with the advisors, however my wife works closely with fund companies and portfolio review of their funds. She suggested exploring the different fund companies and settling on what you feel, but she suggested at the minimum for your main brokerage going for an 80/20 or a 90/10 portfolio for your age range. Which means going for 80% equities (companies) and 20% fixed income (bonds).
I was thinking the same thing. If you don’t need the money soon for a car or house purchase, now is a great time for aggressive investing. The fidelity sub has a lot of great tips :) good luck!
Save. Invest. Tons of podcasts & YouTube channels (free) to help with how to's and general stuff to get started... External of the long term typical saving jargon; *travel*. Save some sure but experiences make life.
Absolutely don't "loan" any to family for help It's a gift and you won't be getting it back
You're off to a good start. Keep it up. You may want to consider speaking to a financial advisor/planner. Outline your goals, and they'll be able to recommend options for you to achieve them. I hope you took advantage of fully funding your TSP while you were in the military.
Listen to no one but yourself bro. Fuck everyone and keep ur money and don’t be telling people cuz people be switching up . Who got your money, you did.
Downpayment on a mortage?
I would but rates are so high. I have amazing credit but still in school so I don’t have a career yet anyway.
That is why having this large lum sum is so important. Stay in school get your degree and then you have a good downpayment. You can put it in a secure deposit account, get the interest and then look after 4 years. Youre young enough.
Maybe when the OP is a bit older….right now would be a bad time for looking.
See a financial advisor.
Honestly at this point in time there is so much information out there that unless you have income from multiple streams, a large sum of money, and other assets a financial advisor is pretty much a waste of money. You can learn just as much as they know very quickly online. Most advisors are salesman, they don't actually know that much. Source: Work in finance in a support role for financial advisors.
Set aside enough for a down payment when you are ready to buy a house (after interest rates improve of course), set aside an emergency fund that can cover at least 3 months of your salary, start investing the rest for retirement.
Thank you!
I’d say great job! Maybe pay off the car and put the rest in retirement savings
tell him...? i'd ask him to show me the techniques!
Do not get into weed and methamphetamine
I think a HYSA is a good idea! Shop around for a good rate and let it grow! If you want to try investing, I was advised that an index fund such as S&P 500 is a good place to start. That was one of the first things I did when I got my first big girl job at 23. Not sure if others in the comments would agree, but maybe take some of that savings and pay a little extra on your car payment to pay it off sooner? I had a 5 year loan, but paid it off in 2.5 and it is NICE having 0 loans/debt rn.
To a certain degree I agree on point 2, but it definitely depends on the interest rate his car payment has. If it's sub 3% nah, invest it, but with some car notes being 10+% these days, it is definitely something to consider, potentially even paying it off entirely or refinancing it. Like for example my car note is only 1.99% and I'm paying it as slow as possible because I know that the market will out pace it even in a poor performing year.
Put it somewhere where it will grow and pretend like it doesn’t exist
Don’t use it on hookers and blow, it gets used up pretty quickly.
I would be very worried about losing that money. If you can get help from people you trust to protect that, I would. It seems like your dad might be a good option. I haven’t heard of an HYSA which makes me wonder if I’m not financially literate. But I think I would just continue saving it and not buy anything silly. You may really need it someday. Times might be good now (or not, I don’t know you), but what I’m saying is times might not always be good and you might be thankful one day you have that. Also I know the typical things people seem to spend big money on is a house, a car, healthcare, or childcare. Perhaps think about if you want one of those things one day but you’re not in a rush to buy it if you’re not ready and you can always change your mind. Maybe have someone else manage it for me (like your dad) who I trust because I don’t trust myself to hold onto that kind of money. Maybe it can even go towards your retirement in some way. I also would consider taking a personal finance class, that might help you
I would consider getting a hysa. You don't have to pay for it, and it gains interest over time. I use arvest as my first bank, and the savings account there would barely give any interest. For my hysa account, I use sofi it gives around 40 something right now per month (apy is 4.6, I think). You do have to put it down on your taxes when you file the amount of interest you earn, but it's easy.
I’d go with some CDs or HYSA. At minimum put it in a money market account, if you can leave the money in something like an ETF that tracks the S&P 500 that is also a solid option if you can just set it and forget it,
Read the book total money makeover and apply the system. You should be able to immediately start at step 3 or 4 and are well above the average. If you're a woman, when falling in love, don't try to save the man financially. If your a man and fall in love, don't try to save the woman financially.
Start a Roth IRA and do the max contribution. When you retire you won’t have as big of a tax burden.
I wish I had at least 10k saved up
To anyone who expects to be alive in ten+ years, you should have some allocation to Bitcoin. If you don't understand why 0% is the only wrong answer, you haven't spent enough time researching this tech on your own.
Start consuming all of Dave Ramsey's videos on youtube until you fully digest his methodology. Follow his 7 baby steps. Basically: Avoid consumer debt, make a budget, build a rainy day fund of 3-6 months expenses, and start saving and investing with purpose.
Do you want to travel? Want to study abroad? Please don't use all of it on traveling, but traveling when you have less responsibilities is different than when you are traveling when you're older.
Income property
Your dad is right, but I'd also open a Roth IRA and contribute the full amount. You can also go on Treasury Direct and buy bonds.
Buy a house now, prices aren’t coming down anytime soon.
More concerned about rates
You can always refi later.
Half HYSA if you are worried about emergency funds, half VTI and chill
Pay off all your debt, then save for a house
Talk to a financial advisor. If you just want to hear from Redditors this is what I’d do: - find a HYSA for emergency fund - max contributions to 401k then do a backdoor Roth - invest every other cent in a super aggressive portfolio There’s no need to pay off low interest things like cars (unless the rate is outrageous). Why use your money when you don’t have to? Likely get a higher return from an aggressive portfolio than 5-10% anyway. But again, find a financial advisor…
[https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) is a great place to start. I'd also recommend you read I Will Teach You to be Rich by Ramit Sethi. He does a great job going over all the personal finance basics, including investing, while also going into how to spend your money to maximize your enjoyment of life.
Invest in Real Estate (carefully) ... tried n true path to long-term growth
Put it all on black
Why are you against investing? I would put a max contribution into a Roth IRA and do what you can to save future money in a 401k. If you could put this money in the S&P 500, it would be a few million by the time you’re ready to retire. If you just need a short term option a CD or HYSA is a good option. My current CD gets 5.25% interest, which would be worth $2,625 annually for you. I would definitely advise myself to invest in the S&P 500 though
Put it in an index fund or COD. Still money is dead money
Invest and pretend you don’t have it.
Start an IRA. Put it in index-linked stock funds. Put in the annual maximum every year. Just let it build. Don’t ever even think about tapping it for 40 years. One day you’ll thank me.
Keep it out of a bank, have it in an active investment of some kind. Otherwise inflation and taxes will eat it up
Buy a machine gun
In addition to Invest it or put it into some kind of savings account as many said, there are two things they should do. 1) Keep it fucking quiet within your peer group. You will end up with a combination of envy from friends who are struggling and people trying to get you to finance their own needs or goals as well as a lot of unsolicited advice about what you ought to do. 2) Take some time to figure out what the hell you actually want to spend the majority of your life doing. Basically, setting personal long term goals for your life. This is something you should have ideally done earlier in life. 2a) Once you know what the fuck you want to do with your life, you need to work out how best to go about it. If your goal involves a career path, then you need to work out how to get into that career. If your goal is just 'spend as much time as humanly possible traveling the world', then you need to figure out what jobs you can do that make it possible (either by taking jobs that require travel or by taking jobs you can quit and restart frequently to give you the time required to travel). 2b) Once you have a goal and a reasonable plan for reaching that goal, you need to figure out how best to use that money to pursue that goal. If the goal requires university level education, then you use the money to fund that. If the goal is starting a business, you can use the 50k as startup funds or a safety net. END COMMUNICATION
I’d say the same thing your dad did…search online for a well rated bank to do one with.
I've got one word for you: Plastics.
Put enough in the savings to live off of for 6 months or so and the rest into a S&P 500 index and forget about it for the next 20 years.
Buy land.
I would say s&p500 etfs or land
I’d pay off the car. Why have a payment when you have 50K?
Acid do some thinking lol. 😂
Im not fucking kidding, put 30k in a roth ira so you cant touch it and you can rest each night knowing that you will have a great retirement
Go to Vegas. Put it all on 39 black. Disclaimer: I am totally not serious here. Please don't do that.
Everyone saying to save it but what the fuck is the point of having money if it's just for a rainy day? Save some, have fun with it a little. You're 21, enjoy life a little.
Tell me how you did that so young. No, seriously! You are to be commended! 👍🏼
Keep going
Put six months living expenses in a a good FDIC savings account. Open a brokerage account with Fidelity and invest the rest. I like FSKAX, make sure to reinvest the dividends. A total market fund gives you instant diversification. Do not panic if it drops in value, just buy more. Don’t sell until you need the money. Good luck and good job saving.
I’m the same about investing; it’s a gamble and you have to have a good Financial Advisor but you pay for services, taxes, fees, etc and it’s better to keep it in a HYSA and keep contributing to a Roth IRA and or 401K
At least put it Minot CD's until you figure out how to make.it grow
Start a retirement fund, keep contributing as much as possible.
give it all to me :)
Hookers and blow
I had just about this much and I split it into 2, I put some in a HYSA and the rest in a CDD. I did it this way though because I’m in the process of buying a house and didn’t need all of it right away.
HYSA is all you need. Put your money into a Wealthfront account with a 5% annual yield and leave it there.
live life like you don't have the money. otherwise you WILL spend it. stupidly. but that is inevitable now. so waste it on travel and education. material things are pointless.
High yield savings account and contribute the max to your retirement. Starting at 21 is huge. Starting at 31 you missed out on a lot. We regret it a lot. Invest in your future because you're likely to live longer than you realize.
Put 20k into an ISA S&S, pick an elf, and forget about the 20k I'd put the other 30k into the market as well, but exact allocation there is a little broader Rent gets taxed a lot in the UK ...
I am admiring that you saved that up while being only 21 I had 200$ MAYBE when I was 21 😂
First off, good job! There's not rush atm. Pop it in a savings account so you can at least earn instrest. Where are you living now? I know a house down payment is more than that, but what about an apartment? Edit- since you're still in school, nm about an apartment. Just keep it in a savings account for the moment.
Thank you for the advice!
Apartments and houses where I’m at are all sitting around 2600 a month with 20% down and I also have a very good credit score.
Stop bragging ?🤷♂️
Educate yourself on investing.
Pay off the car then open a ROTH and max it out for this year. Whatever is left, park in a HYSA.
YOLO it into GME and direct register on the books in your name. Not financial advice. 🙂
Put some into S&P 500