In September I turn 21 and I gain access to a trust fund with 80k. I was wondering if anybody had any good suggestions on how to go about investing it?? Right now I plan on trading equities and options. My strategy will be selling naked puts on stocks I want to own and covered calls on stocks I do own. Also, I plan to trade some earnings plays, vertical spreads, iron condors, ect. I'm mainly just looking to take advantage of high volatility and collect premium. Most trades will be risk defined. Just looking for any suggestions or ideas?
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For now, I'd keep your trust fund in your back pocket.
Thats not really a ton of money, I would keep most of it as a nest egg, maybe put some in some Mutual Funds or ETFs. But in general, that amount of cash falls into the "nice to have" category for things like moving expenses, grad school, emergencies, etc..I definitely wouldn't think of it as "how do I put this money to work for me" territory.
Investing it through Wealthfront or Betterment wouldn't be a bad idea.
I invested in college while I worked a lot and made good money on those investments, but those were different times...recession recovery...nice.
It all ended up being cashed out and put to education and traveling. I have no regrets.
I've traded various options and naked puts. With that being said, I think the best way to use your money is to buy real estate. If you follow any of the legendary investors i.e. Peter Lynch they all say that any sensible investor would buy real estate before putting a dime in the markets. Just my 2 cents and what I plan on doing when I get a sizable amount saved like you have. I would look at a website called www.biggerpockets.com
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