Deciding how to use a surplus of money that I came into

VasiliyZaitzev · 2016-05-26T12:40:16+00:00

A. Pay off any debt you have, especially consumer debt.

B. Bank the rest (or index fund, yada, yada).

C. STFU About it. Do NOT mention this cashola to any of your loser friends or, worse, any girls, because MFers will hamster their way into deciding that it's theirs and you should spend it on them. BEST case is, drinks are suddenly on you all the time.

RedditAdminsSuck_88 · 2016-05-24T20:37:34+00:00

Pay off all debt. If you have already done that, create a fund for 6 months worth of living expenses and park it in a money market fund or other low risk markets.

Alpharettaraiders09 · 2016-05-24T23:09:33+00:00

Listen to these people who have commented!

Pay off debt is huge and then portfolio!!

ronsoness · 2016-05-24T21:20:54+00:00

it's not a lot of money, but at 21, it is a notable amount.

since you have all things taken care of, i would probably put some in your bank and invest some. you want to open an account at a reputable brokerage like scottrade, charles schwab, fidelity. you don't need to hire an adviser, just open an account. then i rec'd buying some etfs or mutual funds, which are pre-diversified funds based on a collective group of stocks. example, SPY is based on the S&P500 performance. or you can look at these vanguard funds https://investor.vanguard.com/mutual-funds/list#/select-funds/asset-class/month-end-returns . it's diversified so risk is reduced. buy multiple funds (bond market, us stock, international stock) and you'll have a very safe portfolio that requires very little research and understanding of individual companies. note there is a small fee these funds charge.

and also put some money in your bank account. it will give you peace of mind to know you have "money in the bank". you don't need to spend it, just it being there is amazing. trust me, as a person who grew up poor, peace of mind is priceless.

[deleted] · 2016-05-25T03:29:55+00:00

Start a low-medium risk portfolio with the advice of a professional

[deleted] · 2016-05-25T01:09:56+00:00

debts, stocks, maybe even an etf if you're gay

Title	Deciding how to use a surplus of money that I came into
Author	trippymofoAF
Upvotes	7
Comments	11
Date	May 24, 2016 8:34 PM UTC (10 years ago)
Subreddit	Posted in /r/askTRP
Original Link	https://old.reddit.com/r/asktrp/comments/4kvwj6/deciding_how_to_use_a_surplus_of_money_that_i/
Archive Link	https://theredarchive.com/r/askTRP/deciding-how-to-use-a-surplus-of-money-that-i-came.105912 https://theredarchive.com/post/105912

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