Help 18yr old invest 15k

[MrPolarZero]

I think you might want to look into putting up a small business. The earnings that you will get there is not really that big but it is much more stable than high risk investments.

[littleroc02us]

How does $3,801,883.03, if you simply put the 15k into an index fund with say Vangaurd and contribute $5000 to a roth IRA for 50 years that is the amount you will have if you average 8% return. Not bad...

[moneyfox]

I think you might want to look into putting up a small business. The earnings that you will get there is not really that big but it is much more stable than high risk investments.

Disagree with this one. Most small businesses fail and would be a high risk investment. I'd rather stick it in a fund that invested in 'small business'. Let the fund manager pick the companies.

This money you have been lucky to get at your age is a great start in life, so I hope your investments are doing well.

I'd love to have got a lump sum when I was 18 I am sure even though there are differences between US and UK in terms of investing £15k, the general principles seem to be aligned.

Looking forward to reading more stoires on the forums. Still trying to save more each monthand spend less here.

[TexasHusker]

Disagree with this one. Most small businesses fail and would be a high risk investment. I'd rather stick it in a fund that invested in 'small business'. Let the fund manager pick the companies.

This money you have been lucky to get at your age is a great start in life, so I hope your investments are doing well.

I'd love to have got a lump sum when I was 18 I am sure even though there are differences between US and UK in terms of investing £15k, the general principles seem to be aligned.

Looking forward to reading more stoires on the forums. Still trying to save more each monthand spend less here.

The story behind the story is that small businesses fail because they are under-capitalized or have lazy or incompetent operators.

If you have adequate capital and offer good service, your chances of failure are quite low.

[scfr]

The story behind the story is that small businesses fail because they are under-capitalized or have lazy or incompetent operators.

If you have adequate capital and offer good service, your chances of failure are quite low.

Although this is a dredged up old post I am going to go ahead and comment (sorry). I basically agree with what TH says. HOWEVER, because OP was only 18 at the time of the inheritance, I would say that for him/her, investing an entire inheritance in a small business at age 18 probably wouldn't be a good idea. They may be a very competent and hard-working person, but may just be lacking in the experience, know-how, connections, or passion to make a small business succeed.

If owning a small business is something that OP is interested in, I would suggest that s/he focus on their education and get some work experience under their belt in the field that interests them. They might work in the field and find out that it is not what they expected and the interest wanes. In the meantime, invest the inheritance very conservatively so that it is there when/if they decide to take the plunge in to business ownership.

[FLA]

Congrats for thinking long-term! Open a Roth IRA and fund it for 2010 (5k if you have at least 5k of earned income). Fund it every year so that your money is growing tax-free. Choose low-cost index funds (both inside the Roth and out). Read a few books about asset allocation. Avoid commissioned salespeople. If you want to work with a financial planner, then seek out a fee-only CFP. Google "Garrett Financial Network" and choose one in your area. Best of luck to you!

I agree with this. I suggest Vanguard's low cost index funds. I think all young adults should read Financial Planning for Dummies, it covers all the bases from college to your first job to basic investing. I would not see a financial planner for such a small amt, do your reading and you'll see you can invest on your own. Index funds are easy peasy.

[disneysteve]

Folks, this thread is 6-1/2 years old. It got bumped up by a spammer. OP is now 25 and hopefully doing just fine.

[~bs]

I agree with this. I suggest Vanguard's low cost index funds. I think all young adults should read Financial Planning for Dummies, it covers all the bases from college to your first job to basic investing. I would not see a financial planner for such a small amt, do your reading and you'll see you can invest on your own. Index funds are easy peasy.

I think mutual fund investing would be the way to go, and index funds even better for someone just starting off. try investing 1/3 in domestic stocks, bonds, and world stocks.

[TexasHusker]

Folks, this thread is 6-1/2 years old. It got bumped up by a spammer. OP is now 25 and hopefully doing just fine.

I am most anxious to hear !

[bjl584]

Folks, this thread is 6-1/2 years old. It got bumped up by a spammer. OP is now 25 and hopefully doing just fine.

Hmmmmm......

There is a glitch somewhere that allows new members to view the old threads on occasion. I'm not sure how to fix. 99% of the time new members can't see old posts.

[TexasHusker]

Hmmmmm......

There is a glitch somewhere that allows new members to view the old threads on occasion. I'm not sure how to fix. 99% of the time new members can't see old posts.

I love old posts! Usually they aren't much different than new posts!

[disneysteve]

I love old posts! Usually they aren't much different than new posts!

Generally, that's true. Personal finance really doesn't change. The advice is always the same. The names and details vary but the advice doesn't.

Still, it's annoying when the new posters dredge up the ancient posts. Happens a lot. Not quite as much as it used to but still a lot.

[Captain Save]

Disagree with this one. Most small businesses fail and would be a high risk investment. I'd rather stick it in a fund that invested in 'small business'. Let the fund manager pick the companies.

This money you have been lucky to get at your age is a great start in life, so I hope your investments are doing well.

I'd love to have got a lump sum when I was 18 I am sure even though there are differences between US and UK in terms of investing £15k, the general principles seem to be aligned.

Looking forward to reading more stoires on the forums. Still trying to save more each monthand spend less here.

hmm... this is why I'm not a big fan of blanket advice.. Someone who is content on working for a corporation .. and decides to put money in a fund ... is fine .. but if we're talking about putting money in a small business we're most likely talking to an entrepreneur.. . The entrepreneur wants control and is aiming for higher longer term return .. there are a lot more variables as to why a small business can fail.. sometimes it can fail after a few years but the owner still earns a fine living .. maybe the business has run its course .. Some businesses are riskier than others. Someone going to med school and eventually opening up a practice - that's a lot less risky than opening a restaurant for example. and less risky than a typical 9-5 (once you're done with school) ... although the point of entry is much more expensive.

[clatoden99]

Look into dividend growth investing.

With this method, you can receive a steady stream of income which will rise as you sit on your couch and watch TV, are sleeping, eating or doing just about anything else. By having the foresight to invest in dividend growing companies, you will receive raises on a consistent basis by doing absolutely nothing!

Your capital will remain completely untouched in the entire process. It is likely you will profit from gains, but may also lose in the process. However, with this method of investing you don't need to pay too much attention as these are usually stable companies that are sure to go up given a longer time frame.

[moneyfox]

Generally, that's true. Personal finance really doesn't change. The advice is always the same. The names and details vary but the advice doesn't.

Still, it's annoying when the new posters dredge up the ancient posts. Happens a lot. Not quite as much as it used to but still a lot.

It's how people find a forum - searching for topics of interest. If a post is open, then it can be commented on.

Surely if it is such an issue, then posts with no action after 30 days / months can automatically close.

I think investing 15k is an interesting topic - lots of approaches I have seen.