College Kid Needs Advice

**Jluke** · 12-23-2015, 04:25 AM

I would suggest putting the money in an online account so you can earn 0.75% interest or more.

You probably should not have pulled your money out of the market and taken the loss. Your investment horizon is so long that you may have been fine riding it out.

Until you figure out investing and until the market really crashes - I agree stocks are overpriced - keep your money safe in a money market account.

**rennigade** · 12-23-2015, 10:48 AM

Originally posted by Jluke View Post

Until you figure out investing and until the market really crashes .

Could you let us know when the market is going to crash? I want to be sure I have a lot of liquid cash on hand and ready to go when it hits bottom.

OP...you may want to think about opening a roth ira...you can do it online...most people recommend vanguard, low fees, easy to use. Fidelity is probably just as easy. A roth ira is something used when you get close to retirement. That may be more beneficial to you since its a long term investment.

Also...OP...its generally a bad idea to time the market. The multi billion dollar companies havent figured out how to do that yet...us average joes have no chance.

**Jluke** · 12-23-2015, 11:25 AM

we had two "crashes" in 2015 - August and October... my guess is for another near the presidential election.

I'd hate to see the OP invest now only to sell at the first sign of negativity.

best thing to try is dollar cost average in increments and let it ride for the next 40 years. Whatever is invested shouldn't be withdrawn.

Set up a Roth if you have earned income to do so in that given tax year ($5500 max).

Research bogleheads for investing strategy.

**autoxer** · 12-23-2015, 11:26 AM

Originally posted by wes467 View Post

I just finished off an 8 month engineering co op and earned 25k from it. I now have a total of 35k. Im 20 and going to be starting my Junior Year in the Spring semester. I am not sure what to do with it. I am sketched about the stock market cause I lost 6 grand in it when the Chinese market tanked and pulled my money.

Any help would be appreciated.

The stock market is great for money that will be invested long term. Ignore all of the short term fluctuations and choose investment that you are willing to hold for a long time. If you expect to need any of this money in the next year or two, then put it in a savings account.

**Weird Tolkienish Figure** · 12-23-2015, 12:02 PM

Originally posted by wes467 View Post

I just finished off an 8 month engineering co op and earned 25k from it. I now have a total of 35k. Im 20 and going to be starting my Junior Year in the Spring semester. I am not sure what to do with it. I am sketched about the stock market cause I lost 6 grand in it when the Chinese market tanked and pulled my money.

Any help would be appreciated.

Are you debt free? I would pay off debt first.

**snafu** · 12-23-2015, 12:06 PM

Wes, how will you cover costs of spring semester?

Any stock market investment needs a minimum, 5 year window or it's considered gambling with odds similar to Las Vegas. I suggest a couple of 'fast read' books like The Automatic Millionaire [Bach] or Millionaire Next Door [Danko] available at your library, e-book, low cost from an on-line re-seller. Most successful investors create a plan, adjust for political and economic changes and DCA [Dollar Cost Average] their preferences.

You might enjoy the views expressed on Boggleheads.com

**LittleLamplight** · 12-28-2015, 10:19 AM

Like Jluke I recommend opening a Roth account.

**Weird Tolkienish Figure** · 12-28-2015, 11:00 AM

Originally posted by wes467 View Post

I just finished off an 8 month engineering co op and earned 25k from it. I now have a total of 35k. Im 20 and going to be starting my Junior Year in the Spring semester. I am not sure what to do with it. I am sketched about the stock market cause I lost 6 grand in it when the Chinese market tanked and pulled my money.

Any help would be appreciated.

Depends on your goals.

Long term? Buy higher risk mutual funds: small cap and overseas funds.

Medium term? Large cap mutual funds and bonds.

Short term? CD's and money market accounts.

This is my "rule of thumb" for investing.

To me owning your own home and paying down the debt is still a great investment.

College Kid Needs Advice