Quote:
Originally Posted by heartsong
My 21 y.o. son received a $20k Navy Reserves sign-up bonus. What would be the best advice I could give him about investing this? He's paying for his schooling and living expenses from his day job.
thanks!  |
How long until he withdraws the money?
If the account is worth less than 20k on withdraw, what are the consequences?
My suggestion if money will NOT be withdrawn within 10 years is put the money in 100% equities. 50% large cap, 10% mid cap, 10% small cap, 30% international.
When gains come into account, I would send them to a money market account. Over 7 years, I would expect there to be 20k in money market and 20k+ in the funds which can keep growing. There is a risk that this will not happen, though.
Might make sense to do 50% in equites and 50% in money market if not comfortable with risk above.