If you had $50K cash sitting in the bank in your early 20s, what would you do with it?

HumanSockPuppet · 2020-01-26T18:37:38+00:00

Put as much of it as possible into an tax-advantaged investment account invested in index funds.

Once your tax-advantaged accounts are maxed for the year, put the rest into a taxable account.

tripmepls · 2020-01-26T17:27:13+00:00

I’d keep 3-6 months of living expenses in a HYSA, as an emergency fund, and put the rest in a Vanguard index fund.

Nofapislit · 2020-01-26T23:46:09+00:00

Read bachelor pad economics or check out redpillfinance

xxx69harambe69xxx · 2020-01-26T18:02:11+00:00

open a managed vanguard account with roth ira capabilities and max out all 6000, save another 6000 for the next tax year, use the rest to figure out what location you want to live in for the rest of your life, and to get a sustainable career there

G4RRETT · 2020-01-26T19:46:40+00:00

If you are paying rent, then stop paying rent and use this as downpayment/part of a down payment to purchase condo so you can build equity instead of rent.

MisterMarbles1988 · 2020-01-26T18:47:24+00:00

$5000 emergency savings fund, $45,000 in QQQ. Sit and watch the chips pile up.

Purplegetraenk · 2020-01-26T20:22:24+00:00

Look around town, online what small low investment businesses are doing well. Then you just analyze what they are doing and copy them. Investing 50k into index fund is slow money

palsnotkcots · 2020-01-27T00:33:27+00:00

NOT JOIN THE NAVY

TheReplierBRO · 2020-01-27T03:45:58+00:00

When I had the money, BTC was at $80 a coin back in 2013. I considered dumping all of my $15,000 of life insurance into it RIGHT before the news of OG silk road hit the fan about Ross getting popped. I would have been a millionaire by now. But I listened to people who have doubt. If you're smart, READ THE INDUSTRY. Whatever it is. Shortly after I saw a budding company, MedBox, RIGHT BEFORE IT BLEW UP. Stocks were worth $0.75 at the time. Within a year they were at $70 plus a stock. Because I recognized they had a solid game plan written by someone smart. And they offered a legitimate product that was needed. I would have had $10 mil by the time I was 23 if I had followed my own thoughts and not the brains of others. As well, BP oil spill when I was 16 roughly. If all my major investments had gone through I would have saved my family and future from poverty. But instead I ended up listening to others fears. It's not too late to get rich. Never will be. Just that God had set me to get it early and I lost sight. My suggestion. Read markets and learn what is needed and look into the owners game plan. And what makes sense. And just read and read.

ledsdeadbaby · 2020-01-26T23:56:06+00:00

I would definitely use a portion that you could handle losing to place speculative bets that could payoff big time. High risk, high reward. Early 20s is the best time to take a chance on winning it big. You have time to make it back.

FinancialThanks1 · 2020-01-26T17:53:05+00:00

So many more factors to consider

thrwy75479 · 2020-01-27T00:32:45+00:00

Savings, index fund, or down payment on real estate to live in, or rent out, or both.

bbcbarbarossa · 2020-01-27T02:07:59+00:00

cocaine and hookers

PepeApuSmidgeMarvNog · 2020-01-26T18:15:00+00:00

Whatever you do keep at least $10k in cash for either emergencies or future investments, as you never know when opportunities or problems may arise. Keep it in a high yield savings account so you’re at least getting 1.5% back.

MVWeiss · 2020-01-26T20:52:49+00:00

Still waiting for even ONE OG to mention the best way to invest it

nixons · 2020-01-27T00:00:59+00:00

Follow the below, but wow, no one said get 1 bitcoin.

Livecrazyjoe · 2020-01-27T00:13:57+00:00

Try to buy Bitcoin on a downswing. Then hodl hodl hodl.

creating_my_life · 2020-01-26T18:29:01+00:00

not spend it.

go to the personal finance subreddit and walk through the flowchart. It's pretty good.

"Savings" and "Investments" happen after the rest of your personal finance world are in order...car loans, credit cards, emergency fund, etc.

WiterS2 · 2020-01-26T20:26:08+00:00

Do not invest all of in on the same investment.

2020-01-26T22:45:47+00:00

Dump into muni index fund. Retire a year earlier.

dar2623 · 2020-01-27T01:18:00+00:00

Go to a CFP/CFA and pay them for an actual financial plan. Use one that charges hourly or by the plan. Not one that wants to manage your 50k. Follow the directions in the plan.

clickherebaby · 2020-01-27T01:46:00+00:00

What do you do for a living

HurricaneHugues · 2020-01-27T03:51:48+00:00

Invest all of it in dividend stocks to get paid every 3 months.

Thinkingard · 2020-01-27T15:38:50+00:00

The advice here is good. At least make the effort to read a dozen or so financial books. No reason to be ignorant.

badwife132 · 2020-01-27T15:58:14+00:00

go to biggerpockets.com, learn, and then invest in real estate. I'm 29 and own 4 houses, three that I rent out. Buying rentals is the best decision i've ever made

crywankareposers · 2020-01-28T00:02:48+00:00

chiefs -1.5

2020-01-28T00:05:43+00:00

Buy a House

kyzen142 · 2020-01-31T19:32:44+00:00

I would quit my job travel for two years grow my confidence and practice getting good with girls and start making youtube videos of my adventures. If i do the YouTube thing right by the end of the two years I will have enough subs to live off of and become financially independent.

AdonisWild · 2020-01-26T21:34:09+00:00

Buy a brick for 30k, split into ozs, sell for 1500 an oz.

Brian_inwest · 2020-01-26T18:47:11+00:00

invest in my business, stocks, just make more money.

Title	If you had $50K cash sitting in the bank in your early 20s, what would you do with it?
Author	__TheDon__
Upvotes	27
Comments	93
Date	January 26, 2020 5:22 PM UTC (6 years ago)
Subreddit	Posted in /r/askTRP
Original Link	https://old.reddit.com/r/asktrp/comments/eu9la2/if_you_had_50k_cash_sitting_in_the_bank_in_your/
Archive Link	https://theredarchive.com/r/askTRP/if-you-had-50k-cash-sitting-in-the-bank-in-your.315194 https://theredarchive.com/post/315194

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