How do I put my money to work?
So I'm currently a freshman, 19yo, and going to be interning at a Big4 in NY this summer. Not going to be making IB money but I'm looking to save around 2-2.5k from working. I plan on putting away at least 3-4K during each of my next two summers interning as well. Instead of just letting it sit in the bank, what kind of investment options do I have? Stocks are cool but I'm not really trying to deal with much volatility. I'm really looking for something passive, that won't fluctuate too much, and that will make more money than the bank will pay interest. I was thinking about putting it in indexes or ETFs maybe? You're thought and ideas would be much appreciated, thanks in advance.
Dude, you saving 5 grand throughout college isn't going to make you rich.
If I were you I'd spend most of it during the school year at bars, on a few cool trips and on spring break. Live a little man, you have plenty of time to contribute to investment accounts.
19 years old isn't the time to be looking to build long-term wealth. If you're interested in trading stocks maybe take a little of that money and throw it in a Robinhood and learn a little that way and keep some some stashed away in savings, but by all means have fun with it.
Bro, spend it on the sorority girls and fuckin' slayyyyyyyy.
Take a portion and buy stocks, ETFs, etc. and HOLD THEM. I bought ULTA (and a lot of it) when it was at $24 when I was in college...it's currently at $277. Buy some shit and forget about it.
You're too young for the rest of it. You need money to make money and then you'll see how tax implications get factored in.
if I were you, I'd do this: take half and put it in global equities (index fund, mutual fund, whatever, don't pick stocks yet).
take half and clean yourself up. do you have a good interview suit? buy one, keep it fresh. do you need some going out clothes? I know the other poster was kidding, but your ROI on buying a couple rounds of shots on well night will go a lot further for your confidence than buying 50 more shares of SPY.
Hahaha I'm sure it will, I think ill take your advice and just put it in some kind of index fund but I do plan to ball out a bit on the weekends, thanks fellas
Do equity index levels concern you? Valuations are at historic highs - this may be because I like value investing but I cannot bring myself to invest in any ETF/Equity at these levels.
see the thread "rates, rates, rates," I talk about valuation in there.
here's my problem, I don't have the liberty of ever being out of the market, because I don't run a company like Baupost that can have 50% cash. if this kid is trying to get the best return for the next 2 or 3 years, then yeah maybe he should keep some cash, but he's a college kid with only a few nickels to rub together, and I believe firmly that by the time he'll need to spend the money, stocks will be higher.
if you want to do the david dreman or brandes thing and pick up super cheap stocks every year and bail out once they've gone up, be my guest, but I doubt this kid has the time to dedicate to reading balance sheets when he should be out slaying dragons.
also, if there's not a single stock you'd invest in, you're doomed for a life of investment disappointment. there are always bargains, even if prospective returns are lower than the past.
Yeah I just need something that I can check 3 times a month and make sure my money isn't gone. A solid equity index is what I'm looking for as long as in 3 years stocks are a bit higher overall.
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