I (19M) have saved around 10K and Have a payed off car. I’m going to community college right now so that isn’t costing too much money. What should I invest in meanwhile? I was thinking a CD would be my best option. Thanks in advance!
What do I invest in?
byu/FuriousFlamingo_YT inpersonalfinance
Posted by FuriousFlamingo_YT
4 Comments
A CD or a HYSA to save that 10k would be a great idea right now. See also: [https://www.reddit.com/r/personalfinance/wiki/commontopics](https://www.reddit.com/r/personalfinance/wiki/commontopics)
CD or IRA if you aren’t going to need the money any time soon, if you want to have it accessible in case of emergency look for high interest savings or a money market account
High yield savings account is a great option because you can take out your money any time but it still grows at least a little. After you have enough saved for 6-12 months of emergency expenses, you should look into opening a Roth IRA to start saving for retirement.
1. Open a Roth IRA. It is the best investment tool out there for your age. Only drawback is the limit on how much you can invest. Don’t listen to the 401k broker. Do you want to pay the taxes now when you can afford it, or wait until you have less income and taxes are higher?
2. Get an IUL. Yes, it’s technically life insurance. It also averages 10-12% gains and does not carry the age limits of a Roth. You don’t have to be 60 to get it out, and the government cannot make you take it out if you don’t want to. Again, the 401 and bank people want you to pay taxes later when they are higher.