21 Years Old, 15k Cash Saved up... What should i do with it?

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Im 21, still living at home and i have 15k saved up.  I have 10k of it in an mid-cap mutual fund right now.  Is there anything else i can do to make my money work for me?  What would you do with this money?

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H&H&B with that kind of money.

wp746911 (Jan. 24, 2017 @ 3:31p) |

If you're going to have 2 H's, you're going to need 2 B's.

BostonOne (Jan. 24, 2017 @ 7:16p) |

Pensions aren't guaranteed. It's quite dangerous and financially irresponsible to plan your financial future around a pe... (more)

RailroadTrack (Jan. 27, 2017 @ 6:03p) |

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You said nothing about education, income, expenses, or future plans. No one can help you without this information.

I would lease a ///M3.

Buy condoms and/or Plan B

College? Tradeschool? If not, I'd just leave it where it is.

go travel the world for a year or two and get the hell out of this dump.

Figure out about six months budgeted expenses and call that your emergency fund.

How are you getting this money? If "earning", consider putting it in a Roth if you don't expect to use those funds for several years.

While I like the idea of learning to save when young, I also feel that it is important to not deprive yourself of "life experiences". If you think are doing fine in your education etc. and you will be in a good career, the typical earning of 60K to 100K will be much-much higher than what you are saving now. So put some money in Roth and use some of your cash to take a back packing trip to Peru/Thailand and get some world exposure.

BTW - I hate mutual funds - I like ETF's better - you don't get whacked by mutual fund distributions near the end of the year.

keep building it. 15k ain't shit anymore, man.

jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

What would I do? Figure out what I want to do with my life for the next 10 years and work to it.

The cash I would roll either into a well thought out education with solid job prospects or a business start up. All depends on wants and desires and skills you currently have.

rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire with high net worth or a homeless person with approximately $5 to your name.

jaytrader said:   
rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire or have debt up to your eyeballs.

  thats 3,750 loaves of bread can buy.

rufflesinc said:   
jaytrader said:   
rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire or have debt up to your eyeballs.

  thats 3,750 loaves of bread can buy.

  I don't understand why you go around redding my posts. It's getting old.

jaytrader said:   
rufflesinc said:   
jaytrader said:   
rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire or have debt up to your eyeballs.

  thats 3,750 loaves of bread can buy.

  I don't understand why you go around redding my posts. It's getting old.

  idk same reason some people go around redding MY posts

Explain more of your life situation: studying? any debt? if you plan to use this money within 5 years, don't put it in the stock market. You can put it in a CD or money market account that basically pay no interest but you don't want to risk losing this money in the stock market if your goal is short term. Having said that, if you don't plan to touch this money until retirement, put this in a Roth IRA account using discount brokerage firms like Scottrade, Vanguard, etc.

jonathancucco said:   Im 21, still living at home and i have 15k saved up.  I have 10k of it in an mid-cap mutual fund right now.  Is there anything else i can do to make my money work for me?  What would you do with this money?
  
- If you don't have any immediate need for it - i would keep it in mutual fund.   Make sure you have a decent fund and research bit about the expense ratio.  I would go with vanguard - and pick say 3 funds, and split it across $5K each.   Without complicating matters - just go with vanguard, put $5K on small cap, $5K on mid and $5K large cap.  Most important thing to make sure now, you don't pay too much on fee or commission.

- If you plan to plan bit further, put some of it in Roth - it has i think $3K per year limit - but good thing is, you don't have to pay any taxes on it ever!!!   And in case of emergency, you can withdraw the original money you put in without any penalty.  

-  Plus if you have job or have money coming in, try to add say $50 per month or may be few hundred every six months to the fund - so you can keep growing the overall portfolio.

Pull your $15k out in cash of $1 bills. Now proceed to smack yourself across the face with it repeatedly for not investing it in a tax advantage account.

Well, you could at least take $5.5k out of that stack to invest in an IRA before April due date. It would make your slaps hurt slightly less.

jaytrader said:   
rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire with high net worth or a homeless person with approximately $5 to your name.

  You're buying that bread wrong. $0.99 at ALDI and Wegmans.

stanolshefski said:   
jaytrader said:   
rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire with high net worth or a homeless person with approximately $5 to your name.

  You're buying that bread wrong. $0.99 at ALDI and Wegmans.

 yeah but is it organic whole wheat low glycemic or that nasty white bread?

rufflesinc said:   
stanolshefski said:   
jaytrader said:   
rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire with high net worth or a homeless person with approximately $5 to your name.

  You're buying that bread wrong. $0.99 at ALDI and Wegmans.

 yeah but is it organic whole wheat low glycemic or that nasty white bread?

  YUM

15k in a 10-13 percent dividend stock can bring in a nice 150 or so a month in extra "cash"

poese said:   15k in a 10-13 percent dividend stock can bring in a nice 150 or so a month in extra "cash"
  For a stock paying 10-13 percent dividend in today's environment is almost guaranteed to do one or both: reduce the dividend, drop in share price.

Two words: Honda Odyssey

stanolshefski said:   
jaytrader said:   
rufflesinc said:   
jaytrader said:   keep building it. 15k ain't shit anymore, man.
  its still a lot more than the average person has

  Why does everyone compare to "the average person" or "the average family?" What matters is dollars, not percentages or comparisons. A loaf of bread costs $4 (or whatever) regardless if you're a millionaire with high net worth or a homeless person with approximately $5 to your name.

  You're buying that bread wrong. $0.99 at ALDI and Wegmans.

  I miss Wegmans. 

H&B.....obviously.


You need to live a little.

.....aaaaaaaand goodbye OP.

cash out 10k from bank in 20s. go to your room, lock the door, throw money around make it rain.

when that's out of your system, deposit it all and figure out how to get more money quicker.

So im living at home, and I am 100% debt free.  I completed 2 years of school, and I have a job with the city.  Currently making around 40k, but should be around 100k-110k within the next 5-6 years.  I already know this is not enough money to support the life style I want.  I want to own a business in the future, or have a rental property or two.  Maybe both lol.  I do live a little, went on 2 vacations in 2016.  That 15k is what I've put together over like 3-4 years.  I don't have any immediate need for the money.  I could probably leave it somewhere for like the next 5 years.  The mutual fund I'm in is a vanguard admiral fund with an expense ratio of 0.08%.  And I'm pretty sure thats the only fee associated with the account.  I understand that eduction is valuable but there is no chance I go back to finish a 4 year degree.  In my opinion it is worthless to find a job.  The education system is broken, but thats for another post.  My job is full time and ill be 44 when I can retire with a 50% pension.  If I promote this can be 70-80k per year tax free after I retire.     

So im living at home, and I am 100% debt free.  I completed 2 years of school, and I have a job with the city.  Currently making around 40k, but should be around 100k-110k within the next 5-6 years.  I already know this is not enough money to support the life style I want.  I want to own a business in the future, or have a rental property or two.  Maybe both lol.  I do live a little, went on 2 vacations in 2016.  That 15k is what I've put together over like 3-4 years.  I don't have any immediate need for the money.  I could probably leave it somewhere for like the next 5 years.  The mutual fund I'm in is a vanguard admiral fund with an expense ratio of 0.08%.  And I'm pretty sure thats the only fee associated with the account.  I understand that eduction is valuable but there is no chance I go back to finish a 4 year degree.  In my opinion it is worthless to find a job.  The education system is broken, but thats for another post.  My job is full time and ill be 44 when I can retire with a 50% pension.  If I promote this can be 70-80k per year tax free after I retire.     

So im living at home, and I am 100% debt free. I completed 2 years of school, and I have a job with the city. Currently making around 40k, but should be around 100k-110k within the next 5-6 years. I already know this is not enough money to support the life style I want. I want to own a business in the future, or have a rental property or two. Maybe both lol. I do live a little, went on 2 vacations in 2016. That 15k is what I've put together over like 3-4 years. I don't have any immediate need for the money. I could probably leave it somewhere for like the next 5 years. The mutual fund I'm in is a vanguard admiral fund with an expense ratio of 0.08%. And I'm pretty sure thats the only fee associated with the account. I understand that eduction is valuable but there is no chance I go back to finish a 4 year degree. In my opinion it is worthless to find a job. The education system is broken, but thats for another post. My job is full time and ill be 44 when I can retire with a 50% pension. If I promote this can be 70-80k per year tax free after I retire.

Sorry everyone, don't really know how to use this thing.

jonathancucco said:   Im 21, still living at home and i have 15k saved up.  I have 10k of it in an mid-cap mutual fund right now.  Is there anything else i can do to make my money work for me?  What would you do with this money?
If you are somewhere where parking is not ridiculously expensive (EG NYC), buy a used car.

You also need an eight month emergency fund.  

You should also invest for retirement over the long run, but the market is a bit expensive right now.  I would be saying something very different in 2009, but I'd invest a bit more conservatively today.  

Beyond that, spend some CAPEX on a fun hobby that's more fun when you're young, like motorcycles, hang gliding, or skydiving.  Ok, I'm a bit crazy, but you can substitute that for a stand-up piano and some piano lessons.

I know, it's a three or four thousand dollars.

I know, that money will turn into roughly $50K (inflation adjusted) at retirement.

But if you've saved up $15K when you're 21, you deserve to spend a double-digit percentage of it on a really cool hobby.  

I'd much rather see you reduce spending on vacations and increase one-time capital spending on a cool hobby.  Visiting Florida is pretty neat, but visiting 8000 feet above the surface is a bit neater.  So is visiting a shipwreck.  And those things cost a hundred bucks or less for a day, not $5000 for a week.  And my most vivid memories aren't of climbing Macchu Picchu but of hang gliding at sunset in the Catskills and of diving on the Prins Willem in Lake Michigan.  My best friends are from hang gliding and from diving.  And you get to tell a lot of fun stories.

Other cool thing:  besides the training, if you buy stuff used, you can usually sell it for most of what you put for it.  Sometimes stuff even appreciates.  I bought a used hang glider for $2100 in 2010.  Today it's worth $3000.  I paid $250 for two steel 100HP scuba tanks in 2009.  Like a sucker, I paid a $50 premium to buy new, but they're now worth $250-300 used.  

If I had to do everything over again (and to be sure, with the knowledge that I was going to make it, the economy was not going to crash between '10 and '17, and I was not going to lose my job), that's what I would have spent a bit more money on at 21.

Invest in emergency savings, invest in a retirement account (to be sure you also get a pension), but don't forget to invest in yourself.

brooklyn95 said:   So im living at home, and I am 100% debt free.  I completed 2 years of school, and I have a job with the city.  Currently making around 40k, but should be around 100k-110k within the next 5-6 years.  I already know this is not enough money to support the life style I want.  I want to own a business in the future, or have a rental property or two.  Maybe both lol.  I do live a little, went on 2 vacations in 2016.  That 15k is what I've put together over like 3-4 years.  I don't have any immediate need for the money.  I could probably leave it somewhere for like the next 5 years.  The mutual fund I'm in is a vanguard admiral fund with an expense ratio of 0.08%.  And I'm pretty sure thats the only fee associated with the account.  I understand that eduction is valuable but there is no chance I go back to finish a 4 year degree.  In my opinion it is worthless to find a job.  The education system is broken, but thats for another post.  My job is full time and ill be 44 when I can retire with a 50% pension.  If I promote this can be 70-80k per year tax free after I retire.     


You might benefit from doing some study of municipal pension systems in this country. I don't know about NYC specifically, but most systems are drastically underfunded.

brooklyn95 said:   So im living at home, and I am 100% debt free.  I completed 2 years of school, and I have a job with the city.  Currently making around 40k, but should be around 100k-110k within the next 5-6 years.
 

  Pay mom and dad some rent?

qcumber98 said:   I would lease a ///M3.
  
Why get an ///M3  when you can get a //////M3 that have twice the HP

Most succinct advice I can think of is to live like you don't have it.

H&B

brooklyn95 said:   My job is full time and ill be 44 when I can retire with a 50% pension. If I promote this can be 70-80k per year tax free after I retire.
  
Are you military?  I can't think of any other employer that offers a 50% pension, which is being reduced next year to 40% after 20 years with mandatory contributions to a retirement plan.   

Skipping 11 Messages...
brooklyn95 said:   
RailroadTrack said:   
brooklyn95 said:   My job is full time and ill be 44 when I can retire with a 50% pension. If I promote this can be 70-80k per year tax free after I retire.
  
Are you military?  I can't think of any other employer that offers a 50% pension, which is being reduced next year to 40% after 20 years with mandatory contributions to a retirement plan.   

  no, i work for the city of new york.  i have mandatory contributions of around 3%

  
Pensions aren't guaranteed. It's quite dangerous and financially irresponsible to plan your financial future around a pension plan.  The Baby Boomers learned that the hard way. 

Invest your $15k into index funds.  If not the entire $15k, as much as you can.  You've saved a lot more than many of your peers. 



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