# How should I invest $10k?



## ir0n_ma1den (Apr 27, 2007)

I am 18 and will be a senior in highschool next year and my dad is giving me $10k to invest. Now I would probably be keeping this money into the investment for atleast 5 years probably more.

Now I heard that right now an index fund (read: Vanguard) is the best way to go, but i really don't know. What would you invest in with $10k?


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## davemonkey (Mar 29, 2008)

Let me send you may paypal address....heeheehee.

Seriously though, if you plan on going to college, invest in something short-term so you can use it for tuition. Or, if college is already cover through scholarships (or you parents), then invest it long-term so you can't touch it until you graduate.

As far as exactly what or where, I can't really say. CD's are crappy right now. You can put it in an online account like emigrant or ingdirect and get better interest rates. The stock market is a bit risky for a short-term investment. If there is land for sale where you live, I can tell you that land always goes up, and up, and up....but you won't get much land for that $$ unless you buy in low-population-density areas.

Good luck, and a big pat on the back for being responsible with this opportunity! 

-Dave


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## ir0n_ma1den (Apr 27, 2007)

Oh I plan in investing long-term so I wouldn't touch the money until after college anyways. so anywhere from 5-10 years is how long I will leave the investment(s) alone.

I've posed this question on different forums and have gotten wildly different answers:

Pick 4 large-cap, non financial sector, blue chip american stocks. (GE, MSFT, PG, PFE, UTX, etc)
Purchase $2500 of each.
Hold










If I were you OP, I would open up a vangaurd IRA and contribute $5,000 (the max you can per year, unless your old, which you are not) and invest the other 5K in short-term bonds and balanced funds.

allocate the IRA into the riskiest investment available (Emerging Mkts Stk Idx Inv) and DONT touch it! It WILL go down in value in the short term because the US will start defaulting on it's debts around the world soon, this will spill over into inflation here at home, and instability around the world. But your young like me so don't worry.

The 5K you can try to keep in safer investments in an attempt to avoid the slowing market. Once things stabalize (like 3 or 4 years, after this solvency and housing crises gets solved), I would invest again in a very risky investment vehicle because you are young and can afford it. Look into bonds CDs and a vehicle offered by banks (the name escapes me at the moment, I know the principal is guaranteed but earns horrible returns).












Bwhahahahah!!!! stable in 3-4 years? a sum of money to the tune of trillions of $$$$$$$$$$$$ has disappeared due to stupidity and greed, with only a "uh, sorry about that" apology. ---if---- things go back to normal by 2015 I will be -very- surprised.

if you have a sharp stop-loss plan you can do well playing hot potato with the emerging markets game. ishares rock. always do your homework. otherwise you can lose your shirt. there is a trend going on now, internationally...

FXI, EWA, EWO, EWK, EWZ, EWC, EWQ, EWG, EWH, EWI, EWJ, EWM, EWW, EWN, EWS, EWA, EWY, EWP, EWD, EWL, EWT, EWU, ITF


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## milalic (Aug 26, 2005)

Get a financial adviser


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## Bert H (Mar 2, 2004)

milalic said:


> Get a financial adviser


I agree!


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## cah925 (Jun 23, 2007)

X2 on the financial advisor!


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## Nelumbo74 (May 2, 2008)

milalic said:


> Get a financial adviser


Absolutely!


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## mikenas102 (Feb 8, 2006)

milalic said:


> Get a financial adviser


Normally I'd agree with this but let's face it, it's only $10k. Yes it's a nice ***** of money but it's not exactly going to make or break a large majority of us. Why hire a financial adviser and pay him a couple hundred when with enough research someone could do almost as well and sometimes better than a financial adviser? As an added bonus all the research gives you knowledge you can use for the rest of your life. Is APC the best place to get financial advice? Probably not, but some people could probably make helpful suggestions and point you in a general direction. Ask around, call a rich uncle, read and study. Save yourself the couple of bucks an advisor would cost you. Save the advisor for bigger ventures. Do your own research now and let the knowledge you gain pay you dividends.


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## jazzlvr123 (Apr 29, 2007)

invest it in me ill make sure its well spent


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## aquaphish (Jan 22, 2005)

mikenas102 said:


> Normally I'd agree with this but let's face it, it's only $10k. Yes it's a nice ***** of money but it's not exactly going to make or break a large majority of us. Why hire a financial adviser and pay him a couple hundred when with enough research someone could do almost as well and sometimes better than a financial adviser? As an added bonus all the research gives you knowledge you can use for the rest of your life. Is APC the best place to get financial advice? Probably not, but some people could probably make helpful suggestions and point you in a general direction. Ask around, call a rich uncle, read and study. Save yourself the couple of bucks an advisor would cost you. Save the advisor for bigger ventures. Do your own research now and let the knowledge you gain pay you dividends.


When you need help and advice on a planted tank APC and other releated sites are where to go. When you need advice on financial issues you go to a finacial intitution and not whre you get advice on how to grow plants.

Next time you need medical advice try home depot. "FSYS" Now you have my personal financial advice.


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## BryceM (Nov 6, 2005)

Want my advice? It's unconventional.

Take the money and start a business. In your life, you'll never have a better opportunity to try your hand at small business. You might loose it all, you might break even, and you just might figure out how to take part in the "Real" American dream. It doesn't have to be big or fancy. It just needs to be something that you know how to do well.

At your age there is little risk. Later, when you're married with 2 kids it's almost impossible to dive in and assume the start up risk of a new business. The risk of failure is high, but the potential rewards (including a lifetime of business savvy) are enormous.

But that's just me.

You can always do the market, buy bonds, or just stick it under the mattress if you are averse to risk.


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## mikenas102 (Feb 8, 2006)

aquaphish said:


> When you need help and advice on a planted tank APC and other releated sites are where to go. When you need advice on financial issues you go to a finacial intitution and not whre you get advice on how to grow plants.
> 
> Next time you need medical advice try home depot. "FSYS" Now you have my personal financial advice.


Huh??
Perhaps you read into my post the wrong way or you're just a bit abrasive or bitter. I'll assume the former.


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## aquaphish (Jan 22, 2005)

What is so harsh or bitter suggesting that a young new investor look to a financial advisor for financial assistance. Why go to a site that is for Planted tanks and not financial advise. Would you go to Home Depot for medical advice. I hope not. So why go to a site for Planted tanks for financial advice.

The best advice is to see a financial advisor so the first time investor can get professional advice, he may not want to use that advice and look elsewhere but the best thing to do is get that professional advice. 

It is plain and simple and nothing harsh about it.


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## BryceM (Nov 6, 2005)

Can I squash this before it becomes a forum flame war?

Like always, what is written often comes across more harshly than it would in person.

Both Mike and aquaphish make valid points. How 'bout we just move on............


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## Squawkbert (Jan 3, 2007)

For a short (5 years) term investment, I'd look at:

Gold/Silver/Pt futures

Dogs of the Dow strategy (read up on ot at The Motley Fool)

Vanguard 500 idx - if you really want to be able to park it & forget it for a while (the above strategies will have you looking at stock & metals pricing on a frequent basis).


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## Josh285 (Sep 17, 2008)

If I hand $10K...Honestly I would invest in a nice shiny new set of 22" rims and use the rest of the money to modify anything else on the car to make them fit...then maybe a fastbag system...but thats just me


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## Seattle_Aquarist (Mar 7, 2008)

Vanguard Total Stock Market Index Fund

Buy 10% per month ($1000) for the next ten months (average in). Start immediately, the market is on sale.


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## bigstick120 (Mar 8, 2005)

Seattle_Aquarist said:


> Vanguard Total Stock Market Index Fund
> 
> Buy 10% per month ($1000) for the next ten months (average in). Start immediately, the market is on sale.


No hurry, stocks will be on sale for a good while yet. This is painful. If you believe all the media hype the best thing to do with your money is stick it under your mattress.


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## orlando (Feb 14, 2007)

Buy a boat and sail around the world!

or bury it in your property someplace.


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## modster (Jun 16, 2007)

Don't go to a financial adviser. It's a waste of money. The kind of investment that you want to make depends on how much risk you can take. If you can go to sleep at night with 80% of your money gone, then buy index fund. I recommend Russell 3000 over S&P simply because Russell includes small capitalization companies which tend to have higher return. One thing you should remember is that index fund is really a long term investment and by long, i mean way longer than 5 years. If it sounds too risky to you, maybe you should buy inflation bonds. Its return is based on the inflation rate, which mean your 10k will still have the same purchasing power in the future. It's a pretty good deal considering the current inflation is high.


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## orlando (Feb 14, 2007)

Turn some property over..Buy some, fix it up then sell it....


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