Investing $1000

[MaxPowers]

My friend got their tax refund back and want to start investing. They want to start an IRA. What are your ideas on this? I want to suggest putting it in savings until they have more, or waiting till they actually have a job (currently full time school) so they could do a asset builder instead of a lump sum.

[Slug]

We would need a lot more info on your friend to appropriately answer the question.

Any current debt? What kind? At what rate? How much?

Eligible for a Roth IRA or not?

Have an emergency fund? If yes, of how many months?

Those kinds of questions...

[bjl584]

Originally Posted by MaxPowers

My friend got their tax refund back and want to start investing. They want to start an IRA. What are your ideas on this? I want to suggest putting it in savings until they have more, or waiting till they actually have a job (currently full time school) so they could do a asset builder instead of a lump sum.

We need more info.

The best advice is to tell your friend to adjust their witholding so they don't get a refund.

As far as what to do with the thousand, it depends on their financial picture and her goals and plans.

[ecoadapt]

Originally Posted by bjl584

We need more info.

The best advice is to tell your friend to adjust their witholding so they don't get a refund.

As far as what to do with the thousand, it depends on their financial picture and her goals and plans.

Yeah right, getting a refund will depend on their financial status! I suggest this advice will be good so far!

[disneysteve]

Originally Posted by MaxPowers

My friend got their tax refund back and want to start investing. They want to start an IRA. What are your ideas on this? I want to suggest putting it in savings until they have more, or waiting till they actually have a job (currently full time school) so they could do a asset builder instead of a lump sum.

If your friend is a full-time student, he probably can't open an IRA. You must have earned income to fund an IRA. You can't use a tax refund for that purpose. Now if he does have a job, then he would be eligible to open an IRA.