Alright, I'm thinking about what I want to do in college, b/c I want to take full advantage of the good situation I'm in.

My parents did the prepaid plan a long time ago, so my college is pretty much already paid for, as long as I go to a Public State college or university. Along with this, my dad prepaid 2 years of dormitory, and put a few thousand in a mutual fund so that I will have money to support myself with in college. Obviously, I'm extremely pleased with all this and understand i'm lucky to not have to come up with the money myself.

But it would be foolish for me to not take advantage of the situation, so here it goes: If I get a full time job, which i definately plan to, I will not need that several thousand dollars in the mutual fund to support myself, it will be extra money.. The early I can ebgin investing, the better. I'd like to invest it as soon as I turn 18, but wont have full control over the funds until i'm 21. If my dad doesnt want me to do it, he'll hold the funds from me until i'm 21, then let me have at them. if he agrees with the idea, he'll let me do it at 18.

So here's the question to start with: How would you invest around $10k (give or take a little) as an 18-21 year old?

Note: please take this seriously, none of this extra cash is going into a car, at all.

 

Start a Roth IRA

 

While it is impressive that you want to invest, I'm not so sure things will all go down this smooth. Even if you don't spend your cash on women, booze and drugs while in college (not that there's anything wrong with that ) , you may find that a few other expenses are going to pop up. So don't put your money into anything that has a penalty if you take it out.

 

+1 and +1

Both are good sound advice. Once you're "into" your situation you'll have a better feel for how expenses will be, even with a full-time J O B you'd be wise to take advanage of having a cushion, even if you don't need it in the long run. Once you're settled, set a bit aside, just in case, and go with a Roth IRA. Or, take it ALL to the track and bet on *LUCKY* #13

 

take a trip to FOXWOODS (biggest casino in the world now i believe in our lovely state of CT). Or check out mutual funds. Also look at the time frame for how long you want you plan to invest to decide on your tolerance. Begin reading up on the financial world like crazy, so you always know what's happening with your money. try www.money.msn.com or Yahoo! Finance to start.

 

This is better advice than I can offer you.

 

I don't know alot about the US investments but in general but your money into a mutual fund and forget about it. By the time you retire (around 55) you could have between $150,000 and $300,000 and that's only from you initial $10,000. Make sure that your MF is professionally managed and you'll be all set.

 

Or, you cud let ME hold it for you... I'll "invest" in some Mods... urp, I mean, some "funds", for you, and, in 35-40 years, if you can finde me... I mean, when you're ready to cash out, I GUARANTEE you 1 MILLION!!! (Italian lira)

 

heheheh nice


an IRA is that non-taxed fund you can set and get back when you're 65 right? I'm not looking quite that long term, I'd like to see effects by the time i'm 30. I do plan, however, to put aside money from my paycheck for an IRA fund.


my initial idea was to purchase a condo. It has some risks though. This may be good because first off i wouldn't need to put all $10k down to get my hands on a condo. Secondly, since my dormitory is paid for 2 years, That leaves me room to rent the condo out since i have 2 years of free living. So i'll be sitting on an investment that can only gain value for 2 years, and if i keep a tenant in there at all times, it wont cost me much at all, other than time to fill out papers.

Of course theres always the chance that
1) i have a hard time finding a tenant or
2) the tenant damages something and i have to fix it with my own money

Does this seem like a stupid idea?

 

why woulod you need a full time job? You are living in a dorm and most have a meal plan. SO you have 3 hots and a cot and your set. If you want mad/party money get a part time job on saturday and work a few hours and that should support your beer/liquor fund. Well unless your an alcoholic. That way your money invests, you dont need to work full time and you can still party your lucky a$$ off.

By the way how much is in the mutual fund? I am finishing colllege and I took my investments to a money market with my bank, granted I dont gain as much but I loose nothing. Depending on how much your folks stashed away for your lucky a$$ depnds on the interest. I would recomend a Roth IRA too, but Id say wait til after you get out and find a decent job.