What to do with my money

[kvnfo]

I'm a young guy, and have about 15k in my savings, I want to invest somewhere. I have no clue on what or where I could go about doing this.

I have a 11 month old boy whom I plan to put into college (I know I'm young myself and still in college) I own a few sites that bring in a steady flow of cash monthly enough to support me and enough to pay the bills. I also work a full time job.

So instead of having that money sitting around in my savings I want to put it to good use. Someone please point me in the right direction. Thank you.

[bjl584]

There's nothing wrong with having cash sitting around. An emergency fund is an important part of an overall financial plan. Beyond that, does your employer have a 401K? Have you looked into a Roth IRA?

Do you know anything about investing? Are you more comfortable talking to a financial planner and letting them handle your finances?

[kvnfo]

I'm looking into investments, maybe a bond?
I would be fine with a financial planner, but would rather do things myself.

[bjl584]

I'm looking into investments, maybe a bond?
I would be fine with a financial planner, but would rather do things myself.

Do it yourself investing is fine, but you need to know what you are doing before jumping in with both feet. So, how much do you know about investing? If you don't know much I would recommend educating yourself before investing any of your hard earned money into anything. There are plenty of books and websites dedicated to teaching you all about investing and saving.

What is your strategy for purchasing a bond? Do you have anything particular in mind?

[snafu]

Since you work for your money, I believe your money should work for you. Setting aside 3 months of living expenses, I suggest you open an account with a low cost Mutual Fund [MF} with low fees and a good reputation like Vanguard. It's important that You look after your money so until you better understand investing, I think it's wise to arrange Dollar Cost Averaging [DCA] in a Dividend MF or Index MF. That means you authorize your bank to release a set amount each and every month to Vanguard [or company of choice] to fund your DCA investment. [they have representatives/salesmen who explain the details] For example: their minimum opening balance may be $ 1,000. Your DCA could be $ 200. each month from existing savings for the following 6 months. Re-evaluate and adjust to $ 100. from earnings to carry on the program long term.

When you are more comfortable with the procedure and your income increases you can raise the monthly sum. The point is over a long time the value of the account will move ahead of the actual sum you have paid. Yes, the value of the holding will move up and down, that's what the stock market does. You make a plan and stay with your plan, adjusting it every year or more as your circumstances change. There is risk and you must be able to sleep at night without worrying about your money.

Buying a Bond is a money losing choice just now since interest rates are the lowest in anyone's experience. There are fees which reduce your initial investment and with costs rising for most things we are buying, your bond's buying power diminishes.

[jadet]

If you're not sure where to start you should start researching. Read a book, talk to an advisor, research online.

From there you can assess your tolerance for risk and the best investment choice for you.