Where to invest 2k a year?

Discussion in 'Business, Careers & Education' started by Rugger, Apr 24, 2011.

  1. Rugger

    Rugger Senior member

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    I'm young, can go moderate to high risk. Just looking for some tips. I don't make much so don't ask me why so little LOL
     
  2. Harold falcon

    Harold falcon Senior member

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    What are you investing it for?

    If a "rainy day fund" you need to put it somewhere accessible in a pinch, even like a regular savings account.

    If for education there are 529 plans or something similar that will offer tax incentives. You might want to consider paying off your current student debt early (depending on your current interest rate).

    If for retirement there are a multitude of options but the money is tough to get at without incurring substantial early withdrawal penalties.

    I have a Schwab account and dump about 2k a year into it, just as a general savings plan. Maybe for the down payment on a better house someday.
     
  3. Rugger

    Rugger Senior member

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    What are you investing it for?

    If a "rainy day fund" you need to put it somewhere accessible in a pinch, even like a regular savings account.

    If for education there are 529 plans or something similar that will offer tax incentives. You might want to consider paying off your current student debt early (depending on your current interest rate).

    If for retirement there are a multitude of options but the money is tough to get at without incurring substantial early withdrawal penalties.

    I have a Schwab account and dump about 2k a year into it, just as a general savings plan. Maybe for the down payment on a better house someday.


    General savings, but would also need it as a rainy day fund.
     
  4. Piobaire

    Piobaire Not left of center?

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    General savings, but would also need it as a rainy day fund.

    CDs or money market. Return is shit but you need a ready and liquid vehicle for a rainy day fund.
     
  5. the shah

    the shah Persian Bro #2 and enabler-in-chief

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    if there's nothing else an IRA is not a bad option. if you retire in 15-20 years that's not a bad sum + small growth to blow all at once on some premortem extravagance
     
  6. Davidko19

    Davidko19 Senior member

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    1K in roth ira and 1k on the lakers.
     
  7. yjeezle

    yjeezle Senior member

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    CDs or money market. Return is shit but you need a ready and liquid vehicle for a rainy day fund.

    i thoguht there was a fine for cd's & money markets for withdrawing early?
     
  8. drbaw

    drbaw Well-Known Member

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    I'm young, can go moderate to high risk. Just looking for some tips. I don't make much so don't ask me why so little LOL

    I've found great success here: http://www.styleforum.net/forumdisplay.php?f=20

    Seriously, if it truly is savings, and not money used for cashflow, I'd dump it all in an index fund.
     
  9. level32

    level32 Senior member

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  10. Piobaire

    Piobaire Not left of center?

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    i thoguht there was a fine for cd's & money markets for withdrawing early?
    You lose some of the interest in a CD. Big deal at this time when rates are what? 1%? Another thing to do would be to take it to a different bank, open a new checking/savings account, and just let it sit there. Segregation of the money is to help not spending it in your daily cash flows. DO NOT put it in an IRA. You will trigger a 10% tax penalty if you have to tap it.
     
  11. the shah

    the shah Persian Bro #2 and enabler-in-chief

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    DO NOT put it in an IRA. You will trigger a 10% tax penalty if you have to tap it.
    need it as a rainy day fund.
    yeah i didn't notice this earlier gamble at nearest casino [​IMG]
     
  12. Master-Classter

    Master-Classter Senior member

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    Y2K?


    Lol, I'm so clever!
     
  13. AR_Six

    AR_Six "Sookie!"

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    Mayhaps I can make use of this thread.

    I was thinking of doing this except making it 500 a month in the hopes of ending up with a down payment on a house or apartment at some point in the next few years. I get a raise every year so that number will creep up, but 500 to start seems reasonable. If I could make a decent return over the next few years, though, that'd be ideal. Wrinkle: I am Canadian eh?

    Any advice appreciated. Other than comments about moving to the U.S.
     
  14. Piobaire

    Piobaire Not left of center?

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    Mayhaps I can make use of this thread.

    I was thinking of doing this except making it 500 a month in the hopes of ending up with a down payment on a house or apartment at some point in the next few years. I get a raise every year so that number will creep up, but 500 to start seems reasonable. If I could make a decent return over the next few years, though, that'd be ideal. Wrinkle: I am Canadian eh?

    Any advice appreciated.


    100% serious: if you want to preserve the balance to tap in the next few years, there is simply nothing for a "decent return" at this time. Toss it into a high yield savings and have done with it.
     
  15. AR_Six

    AR_Six "Sookie!"

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    Really? I was thinking stick it all into a TFSA, put together a small stock portfolio, and liquidate it when I need to without paying CG's or tax on any resulting income. I mean yours is obviously much safer.
     

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