18 year old with some cash laying around seeking tips

Currently 18 years old with around $6000 saved from working part-time and during summers. People always seem to say that you should avoid having your money in cash (which is the case for me), however, I'm not really sure how to go about this. 

I've been picking stocks since I was 15. Nevertheless, I only invest in maybe 1-3 companies per year so I'm by no means 'actively' investing or how you you'd like to put it. I do quite enjoy my strategy and the process of researching and eventually investing in stocks. However, I neither have the time nor am I confident enough in my abilities to spontaneously invest all my capital in a handful of stocks. 

It seems like a waste to have my money lying around in my bank account so I thought I'd ask WSO for some advice. 

E.g Should I look into funds? And if so are there any ppl recommend?


Should I just keep my money in my bank account for now? 

I personally like the idea of having my cash invested in some sort of 'safe' asset where it exponentially grows by like 2-3% per year. I guess this is easier said than done though. 

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Comments (10)

Most Helpful
Jan 20, 2022 - 12:24pm
youngchimp123, what's your opinion? Comment below:

If you want to be super safe and are willing to take lower returns to offset it, maybe look into dividend investing, or some low volatility dividend etfs.  Some of these can hand off annual yields of about that 2-3% you mentioned. Personally, I'm invested in ETFs that track major indices: VOO and VUG. Honestly, whatever your appetite may be, there's something out there for you, and 6000 at 18 is nothing to sniff at! Just go on youtube or do a google search of whatever ETFs (or individual stocks if you choose to continue on that route!) fit your goals.

Jan 20, 2022 - 1:40pm
Del19mocs, what's your opinion? Comment below:

Thank you for the tips! I haven't looked into dividend etfs before so I'll definitely check that out. 

In regards to the ETFs you mentioned, do you reckon that it's a good time to buy into the VOO considering current market conditions?  

Jan 20, 2022 - 4:24pm
youngchimp123, what's your opinion? Comment below:

If you have a long time horizon, I don't think there's really a bad time. Just make sure to dollar cost average your way in if you choose to do so. I'm down a lot in 2022 so far, but I'm buying all the way down, and will be buying all the way back up as well!

Jan 21, 2022 - 5:34am
Del19mocs, what's your opinion? Comment below:

Of course! However, while I try to figure out what that investment could be I feel like my money should be lying somewhere actually accumulating (hopefully) positive growth. 

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Jan 27, 2022 - 12:04am
blueberriemuffins, what's your opinion? Comment below:

At 18 years old, a small to mediumish percentage of their portfolio in something like TQQQ I don't think should be "avoided like the plague". Depends on their situation, but I'd take advantage of that rent free, small responsibility life while I can. Just make sure you have a long timespan with that investment (2-5 years?). I just think the risk of "losing it all" at that age is not that large compared to the possibility of making a handsome return.

Jan 21, 2022 - 7:23pm
Pizz, what's your opinion? Comment below:

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