Styleforum › Forums › General › General Chat › investment options for student
New Posts  All Forums:Forum Nav:

investment options for student

post #1 of 11
11/29/09 at 5:10am
Thread Starter 
i'm about to finish my first semester of college. things are going smoothly so far.

i get student loans and i get about $2,500 each semester that is extra. i've gotten one installment and it's sitting in my savings account. i get another $2,500 in january.

i guess the money is for me to live on and such...but i have a well-paying part-time job that pays for my living expenses and everythign else. i don't get to save much from the job, but the loan money is still there untouched.

i'd love to invest this money in a safe, secure way, for perhaps 4-6 years, and get something out of it. i know very little about investing of any kind.

any suggestions? i'd be looking to invest about $5k in q1 of 2010.
Reply
Reply
post #2 of 11
11/29/09 at 5:19am
I'd say pay back 2500 worth of student loans. How much interest are you paying on your loans?
Reply
Reply
post #3 of 11
11/29/09 at 5:25am
Thread Starter 
uhhh very little. i take out two loans, on subsidized and another unsubsidized. not 100% on the interest, havent checked on it in a while. ill find out. edit 6.8% on the unsubsidized.
Reply
Reply
post #4 of 11
11/29/09 at 6:17am
Buy into an index fund
Reply
Reply
post #5 of 11
11/29/09 at 11:29am
Well, unless you can be sure to get a greater than 6.8% return on your investment, Just reduce the size of your unsub. loan.
Reply
Reply
post #6 of 11
11/29/09 at 12:20pm
I think trying to invest and get a return higher than 6.8% right now is too risky. I'd say just pay it back. I'm in a similar situation, but my loans are 3.5%. I'm just going to try and back them back quicker.
Reply
Reply
post #7 of 11
11/29/09 at 2:45pm
Do not invest in the market. Any gains you make are -6.8% which is incredibly significant. It's not like you have any real upside potential anyways, even if you're up 20-30% in a year you're loosing a 1/3 of it to interest and the amount of money you're talking about is so small it's equivalent to a few text books. And of course, there is always downside potential- if I have a magic formula to get me 30% I would be using it What I would do? Find merchandise to resell on eBay or forums. Warren Buffet started out buying pinball machines
Reply
Reply
post #8 of 11
11/29/09 at 2:54pm
put 2k in a roth ira account every year. buy an index fund (SPY for S&P 500). you'll have a huge chunk of sum by the time you retire and the earlier you start (even with just 2k) the better.

use rest to pay back loans.

i believe subsidized loans (and i think unsubsidized loans) start to accrue interest after you graduate. wouldn't investing then be a better choice?
Reply
Reply
post #9 of 11
11/29/09 at 3:02pm
^ the juice runs on unsubsidized loans while you are in school.
Reply
Reply
post #10 of 11
11/29/09 at 3:13pm
Quote:
Originally Posted by RedLantern View Post
^ the juice runs on unsubsidized loans while you are in school.

ah. then pay back unsubsidized loans first.
Reply
Reply
post #11 of 11
11/29/09 at 3:39pm
Several bottles of good spirits. Will guarantee great returns.
Reply
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Chat
Styleforum › Forums › General › General Chat › investment options for student