College Student: Looking for Safe Investments

[ellomun]

Hello all,

I am new to these forums and it is great to be here.

I have about 11k saved up to do with what I please. I am only a Freshman in college so I figure I have some time. I would put it in a savings account but interest is so low I would much rather put it to use elsewhere. What is a safe way to get a decent return on my money. Should I put it in an ETF, an index fund, what do you guys think?

Thank you very much and all help is greatly appreciated!

[SeanH]

Do you have $11k to truly to with as you please or do you have 11k of loan money that you need to pay bills with/tuition a year from now? That's perhaps an unfair question since their are rules and stipulations on loan money and I wouldn't want to imply you were doing something wrong. I'm just curious why as a young person you would want a safe investment unless you know you'll need the money in the up and coming. These are probably all the wrong questions though - do you have debt? Is your car paid off? Could you lock in a better rate on your tuition by pre-paying? Do you have an emergency fund?

[photo]

What is a safe way to get a decent return on my money.

That's something we'd all love to know.

Although you may not see any large expenses in the immediate future, you may need money in the next year or two, and if you do, you don't want it tied up in stocks or other things that may not be profitable for exiting at the exact time you need the money.

I'd find the highest yield in a savings or money market account and just park it there for awhile. It's true that the interest rate will be paltry, but a safe and secure investment that will be available when you need it AND give you a guaranteed good return is really not available at this time.

[LMA]

Real estate.

Yep, I know some might think that is not a "safe" place to put money but I really think it is. Specially if you are considering getting an income producing property in this market. You can use your $11k as down payment on a solid little house.

I am in Atlanta and I have seen cash on cash returns on rental properties of 10, 13, 15% and more. You will not get that anywhere in the stock market. Plus if you throw in mortgage paydown and whatever little appreciation we might have over the next couple of years, you can see a very generous return specially for someone like you who is young and has a long horizon in front of them.

Do bear in mind of course that you would be turning your $11k from a liguid asset to a non-liquid asset but again, you are young and are in a great position to do this.

[jpg7n16]

Do you have $11k to truly to with as you please or do you have 11k of loan money that you need to pay bills with/tuition a year from now?

These are probably all the wrong questions though-

do you have debt?
Is your car paid off?
Could you lock in a better rate on your tuition by pre-paying?
Do you have an emergency fund?

(edited for appearance)

No, those are all the right questions [including your 1st ones]

We need to know if there are conditions for accepting the money, to see a timeframe for how soon OP would need the money, and to see if there are better non-investment uses for the funds.

You asked the questions I wanted to ask.


How people can suggest real estate before knowing if there is any CC debt, an upcoming need for the money, or an EF in place is beyond me...

[photo]

How people can suggest real estate before knowing if there is any CC debt, an upcoming need for the money, or an EF in place is beyond me...

Especially for a freshman who is probably 18 or 19 years old! Saving and investing is important, of course, but for someone just starting out in adult life, there will be expenses (especially for someone in college) that are simply unforeseen at this time.

It would be a tragedy to have to pay interest rates on a loan for something essential when you could have had the money not tied up.

[bjl584]

Hello all,

I am new to these forums and it is great to be here.

I have about 11k saved up to do with what I please. I am only a Freshman in college so I figure I have some time. I would put it in a savings account but interest is so low I would much rather put it to use elsewhere. What is a safe way to get a decent return on my money. Should I put it in an ETF, an index fund, what do you guys think?

Thank you very much and all help is greatly appreciated!

The safest investment that you can probably make is to finish school. Keep the money as cash or cash equivelant and use it when you start your life in the "real world." You probably don't want to tie up the bulk of your money right now, as you don't know where life will be taking you once you graduate. You may have to move, buy a different car, etc. All that will take cash, and you certainly don't want to be financing that sort of stuff due to the fact that all of your money is locked up in investments.

[snafu]

An 'investment' needs a minimum, 5 yr. time-line. Better to by laddered CDs or highest paying savings a/c. Look at e-banking rates as well.

[Angelynne]

Hello all,

I am new to these forums and it is great to be here.

I have about 11k saved up to do with what I please. I am only a Freshman in college so I figure I have some time. I would put it in a savings account but interest is so low I would much rather put it to use elsewhere. What is a safe way to get a decent return on my money. Should I put it in an ETF, an index fund, what do you guys think?

Thank you very much and all help is greatly appreciated!

i think it's still best to put it in the bank. plus consider the fact that you may need the money for future purposes especially you're still a freshman. you may have to spend some of your savings for your school expenses.

[rrs2143]

I agree with the above post. Remember that schools are continuing to raise tuition year after year. Considering that you're a freshman, you'll likely face higher education expenses.

I had a similar question a few years back when I was still in college. I kept the money I saved in my Orange Savings account with ING Direct and, if I found a decent promo at local banks, I'd put some of the money in a four or six month certificate of deposit.

After I graduated, I was fortunate to have my money available because I choose to go to law school. With the money I saved up, I was able to pay more of my tuition and take on smaller student loans. Although you may not be considering graduate school right now, it may be an option for you to consider in a couple of years.

In my opinion, I think you should simply put the money in a bank account and let it grow whatever little interest it accumulates. It can either pay off any debts you may have (think credit cards, student loans, etc.) or it can be your emergency fund (which you should have).

[expo09]

What is a safe way to get a decent return on my money.

The problem with investing is that you can either go for safe investments or something that gets you a decent return. With the potential of a decent return usually comes risk.

If I was you and had this amount of cash I would put it aside to buy a home, something a lot of young people are not in a position to do. And a home is usually one of the best investment you can make.

[Angelynne]

Hello all,

I am new to these forums and it is great to be here.

I have about 11k saved up to do with what I please. I am only a Freshman in college so I figure I have some time. I would put it in a savings account but interest is so low I would much rather put it to use elsewhere. What is a safe way to get a decent return on my money. Should I put it in an ETF, an index fund, what do you guys think?

Thank you very much and all help is greatly appreciated!

Personally, because i'm still a student, if i have that much money, i would put it in the bank. i mean, yes it's the safest thing to do, and also the risk that a bank would be bankrupt is i think unusual? so, i guess i'd rather put it in the bank. besides, when you you're already in your sophomore or senior years,you might be using the money.