07-10-2008, 10:22 PM
[QUOTE=Danielp248]Just looking for some financial advice from you wise-old-folks 
Anybody got any tips?
My Situation
Here's my situation. I'm 20 yrs old with a decent paying full-time job. I'm 3/4 of the way through my BS at Excelsior. I plan on going to grad school afterwards. (MA or Ph.D., haven't decided exactly what degree I want yet)
My Money's Situation
After my expenses, I'm left with approx. $18,000 a year to invest/save ($1,500 a month). As of today I have $15,000 sitting in a Charles Schwab Money Market (SW2XX) and another $5,000 in a Charles Schwab Mutual Fund (SWCGX).
I might need some of the money ($10,000 or so) in the near future to pay for my grad school (the rest I might be able to cover with a student loan), but other than that I will (hopefully) not need to touch this money> at least until I need to make a down payment on a house (6 - 8 yrs from now).
My Questions
How should I invest my money? Should I open an IRA (Roth/Traditional)? Whats the best way I can take advantage of my situation (young age, low expenses)? Is it worth it for me to hire a financial consultant?[/QUOT
No matter what you do, no matter what path you choose- THE most important thing will be to have a retirement account going that you NEVER touch. Ever. When my husband and I were 25 we bought our first house and cashed out our 401s. We thought that having $6000 was so much use to us at that moment. It took us years until we built that back up, AND we will never regain the compound interest lost. Compound interest is your friend when you are young. Slow and steady contributions will have huge payoffs. At some point within this decade you will probably marry and maybe start a family- so your "extra" money won't be quite as much. My two cents say to put it away for retirement, because once you start a family, that is what sometimes gets neglected.
Anybody got any tips?My Situation
Here's my situation. I'm 20 yrs old with a decent paying full-time job. I'm 3/4 of the way through my BS at Excelsior. I plan on going to grad school afterwards. (MA or Ph.D., haven't decided exactly what degree I want yet)
My Money's Situation
After my expenses, I'm left with approx. $18,000 a year to invest/save ($1,500 a month). As of today I have $15,000 sitting in a Charles Schwab Money Market (SW2XX) and another $5,000 in a Charles Schwab Mutual Fund (SWCGX).
I might need some of the money ($10,000 or so) in the near future to pay for my grad school (the rest I might be able to cover with a student loan), but other than that I will (hopefully) not need to touch this money> at least until I need to make a down payment on a house (6 - 8 yrs from now).
My Questions
How should I invest my money? Should I open an IRA (Roth/Traditional)? Whats the best way I can take advantage of my situation (young age, low expenses)? Is it worth it for me to hire a financial consultant?[/QUOT
No matter what you do, no matter what path you choose- THE most important thing will be to have a retirement account going that you NEVER touch. Ever. When my husband and I were 25 we bought our first house and cashed out our 401s. We thought that having $6000 was so much use to us at that moment. It took us years until we built that back up, AND we will never regain the compound interest lost. Compound interest is your friend when you are young. Slow and steady contributions will have huge payoffs. At some point within this decade you will probably marry and maybe start a family- so your "extra" money won't be quite as much. My two cents say to put it away for retirement, because once you start a family, that is what sometimes gets neglected.
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