I’m 22, USA, no debts. I live at home for free.
I have a lot of money from my summer job. This is a current breakdown of my money:
Bank account: $15,000
IRA: $1,100
ETF (VOO): $4,500
High Yield Savings (4.5%): $5,000
I’ve looked into options trading but it seems complicated and risky. But I could make a lot of money. What should I do with my money?
Update: what do you all think about this “High Income ETF (QQQI)”? Should I invest in this or stick to the known stuff?
What should I do with all my money?
byu/Intelligent_League79 instocks
Posted by Intelligent_League79
22 Comments
I would take all the cash and dump it in QQQM and maybe keep $1000 for emergencies. I know the IRA lets you contribute up to $7000 a year so I would do the majority of it in that account
I believe you are looking for the regarded wallstreetbets sub
Not alot, just keep safe investing until you decide to move out. You’re going to need it.
Options should not be an option
just hold few days see what happens after fed meeting tomorrow 17th , ur target is a dip then enter , choosing where to enter depends on you , but stick with a good fundamental company like amzn / googl and leave it for a year or 2 compound on it sure whenever applicable
Whatever you do, do not trade options
You already have an IRA and you know about VOO, why aren’t you fully invested? You’re already on the right path, you just need to start walking.
That seems like a lot but is bleeding edge bare minimum. And you omitted your ROTH.
At 22 thats epic, but in ten years with the same mindset is where you can go… “oh shit I might be rich”.
Honestly, man, put your money in an index fund, dont gamble with options.
I use vanguard but most investment platforms have a general index fund that tracks US markets. Look up DCA trading also.
Options is more akin to gambling. You could make a lot of money or you could lose a lot of money. And the odds are against you.
The better approach is slow, steady, repeatable, and maintainable. While it’s not fancy, investing in broad market index funds has proven to be the surefire way towards wealth generation. You’ll make about 10% a year which may not sound like a lot, but over the years as it compounds and snowballs you’ll be surprised at just how effective it is. With 40 years until retirement, your $15,000 will turn into about $1m with little to no risk at all as long as you don’t touch it. And that’s without adding any contributions.
Keep saving, you think you have a lot, but you are basically broke and can’t mooch off parents forever.
Id switch the savings and checking acc, until you decide what you want to do with your money, even if you decide to invest over time, id have the 15k sitting in the high y savings, and 5k in checking, at least have your money grow over time
I would prioritize hitting the annual limit on that IRA every year.
Keep a nice buffer for emergencies, if you can do this then also make sure to treat yourself occasionally, then buy more VOO. If you still have money keep it in that HYSA. Then go gamble with options or buy coke I guess
Well you’re doing great that you’re saving. Not much need for the HYSA if you’re living at home. During uptrends put it all in VOO. Up some 22,000 percent sine inception in 2010. Always have a 10% trailing stop.
Don’t look up yieldmax
Everyone’s going to correct you on the foolishness of trying to trade options with no understanding of the market or the funds to really need explore those type of strategies. I’m going to choose to focus on something else.
Smart enough to put 5k of cash in a high yield savings but dumb enough to keep 15k in a regular bank account getting a penny of interest. Put the rest of that 15k in the high yield while you figure it out a proper investment strategy.
You should pay a small amount and get a low level accountant that will advise you to STAY AWAY FROM OPTIONS unless you want to lose everything.
Invest in sex, drugs, and rock and roll.
That’s not a lot of money. It’s close to nothing, and blowing it all on options trading sounds incredibly stupid.
YOLO it all, you’re young. Check out the lads in wallstreetbets. Just reverse them, you’ll do well. We’re counting on you.
Open a roth ira at Vanguard schwab or fidelity, max every year… Every single dollar will go to VOO then chill💪😎
As someone that thought the same thing about options, tried it, made $770 on my first week, including some trades where I made $100+ in just a few minutes, but then lost all of that and $900 more a month later, stay away from options unless you just do very cheap ones for fun during companies’ earnings reports to try to make big money on small bets. With your savings you are best off investing in the S&P500 through an ETF like SPY, VOO, etc.. You’ll thank yourself in 20 years when you have six figure gains with consistent investing.