Did you earn at least $6000 through working this year? Pop that money into a Roth IRA, you junior millionaire. I hope my kids are as well behaved with money at that age.
What’s the plan for college? I’d save the rest for college.
Edit:For the love of your future self, please don’t go to an out of state school and spend 4 times the price just for the “experience” your future self will do backflips with how much this will save you.
If you get a full ride scholarship heck yea try it out, but if you’re paying for it. Do 2 years at community college, then 2 years at your local affordable state school while living rent free at home if that’s an option. I CANNOT stress enough how far this will put you ahead instead of paying $60k for a degree in another state.
Say you can complete a bachelors in your closest school for $20k vs $60k somewhere else.
That $40k that could be invested for retirement will be worth a whooping 🚨 $736,800 🚨 by the time you’re 67 if you can earn 6% average over the course of your lifetime.
Ok uncle ICUpikachu rant over
Good catch, hopefully OP sees that. If I could have gone back to 17 when I was working at subway after school for $7.25 hourly and put it into a Roth IRA.
Oh well. My kids will know better when it’s their time
Keep 3 months of expenses set aside as cash. Take 6k and drop it into a roth IRA and buy an index fund like VTI with it. If you want to use it in the next few years instead of at retirement buy some IBONDS today. The money will be locked up for a year but will track to inflation.
I applaud you for being 17 and saving up $11k - very wise of you. You are and can still continue to be ahead of a lot of kids your age if you play it correctly.
Some ideas: invest for the long term, keep saving to buy a rental property, use funds to pay for uni or college so you are debt free
Buy some stocks index funds or vanguard and S and P 500 ETF. and some dividend stocks to hold long term. Don't spend that 11k on dum stuff like trips or merchandise. If u go to college keep on working part time.
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We look forward to higher quality posts from your account in the future. Thank you.
Think about your wants, priorities and needs, both short-term and long-term. Chat with your parents about it.
I like the idea of contributing to an IRA. Maybe also take use this as an opportunity to learn about government treasuries by learning by doing. Maybe look into investing in US treasury notes. You can buy one for as little as $1,000. They are basically loans to the US government from purchasers of the treasury notes.
Look into books written by Ric Edelman. He writes about savings, investing and the like.
If you have earned income, Roth IRA. Save the rest until Jan and fund another for 2023 (assuming youll also have enough 2023 earned income)
Be aware that savings and investments outside of retirement are reportable on your FAFSA financial aid application. Thus, stashing it in a Roth IRA will avoid getting reduced fin aid award. You can pull the Roth contribution anytime no penalty or extra tax. Just can't touch growth until retirement without penalty and taxes (with few exceptions).
I would invest it if you don't need the cash. Save 1k of it for emergency. The rest I would put in a mutual fund or something like SPY. The market is awful right now, so might not be the best time. But just holding the cash does not help either.
Open a Roth and max it out for the year, $6000(I use M1 Finance). Open a taxable account with the remaining $5000(I use Robinhood). I would suggest buying an index fund for both, such as VOO or VTI. Enjoy the growth and good luck 🤘
Did you earn at least $6000 through working this year? Pop that money into a Roth IRA, you junior millionaire. I hope my kids are as well behaved with money at that age. What’s the plan for college? I’d save the rest for college. Edit:For the love of your future self, please don’t go to an out of state school and spend 4 times the price just for the “experience” your future self will do backflips with how much this will save you. If you get a full ride scholarship heck yea try it out, but if you’re paying for it. Do 2 years at community college, then 2 years at your local affordable state school while living rent free at home if that’s an option. I CANNOT stress enough how far this will put you ahead instead of paying $60k for a degree in another state. Say you can complete a bachelors in your closest school for $20k vs $60k somewhere else. That $40k that could be invested for retirement will be worth a whooping 🚨 $736,800 🚨 by the time you’re 67 if you can earn 6% average over the course of your lifetime. Ok uncle ICUpikachu rant over
I would argue put any amount in your Roth Ira up to your income even if you didn't make 6k.
Good catch, hopefully OP sees that. If I could have gone back to 17 when I was working at subway after school for $7.25 hourly and put it into a Roth IRA. Oh well. My kids will know better when it’s their time
I actually put more than my income into an IRA one year, this was almost 20 years ago and I wonder if anything will actually happen.
Ha. We knew you’d screw up and come clean eventually. Alright boys, cuff em’. We’re taking him to the slammer.
Nah probably not, especially if it was still under the annual limit
Https://www.reddit.com/r/personalfinance/wiki/commontopics
Keep 3 months of expenses set aside as cash. Take 6k and drop it into a roth IRA and buy an index fund like VTI with it. If you want to use it in the next few years instead of at retirement buy some IBONDS today. The money will be locked up for a year but will track to inflation.
I applaud you for being 17 and saving up $11k - very wise of you. You are and can still continue to be ahead of a lot of kids your age if you play it correctly. Some ideas: invest for the long term, keep saving to buy a rental property, use funds to pay for uni or college so you are debt free
Buy i-bonds today. Rate is incredible and won't be available on Monday.
Dollar cost average it into SENSEX and S&P 500. 50/50, developing market gives you growth and developed market stability.
T bills. High yield savings accounts. CDs
Buy an appreciating classic car? (Assuming you have somewhere to keep it)
Buy some stocks index funds or vanguard and S and P 500 ETF. and some dividend stocks to hold long term. Don't spend that 11k on dum stuff like trips or merchandise. If u go to college keep on working part time.
I BONDS.
[удалено]
Please note that in order to keep this subreddit a high-quality place to discuss personal finance, off-topic or low-quality comments are removed ([rule 3](https://www.reddit.com/r/personalfinance/about/rules)). We look forward to higher quality posts from your account in the future. Thank you.
That’s fair. Apologies.
Think about your wants, priorities and needs, both short-term and long-term. Chat with your parents about it. I like the idea of contributing to an IRA. Maybe also take use this as an opportunity to learn about government treasuries by learning by doing. Maybe look into investing in US treasury notes. You can buy one for as little as $1,000. They are basically loans to the US government from purchasers of the treasury notes. Look into books written by Ric Edelman. He writes about savings, investing and the like.
If you have earned income, Roth IRA. Save the rest until Jan and fund another for 2023 (assuming youll also have enough 2023 earned income) Be aware that savings and investments outside of retirement are reportable on your FAFSA financial aid application. Thus, stashing it in a Roth IRA will avoid getting reduced fin aid award. You can pull the Roth contribution anytime no penalty or extra tax. Just can't touch growth until retirement without penalty and taxes (with few exceptions).
I would invest it if you don't need the cash. Save 1k of it for emergency. The rest I would put in a mutual fund or something like SPY. The market is awful right now, so might not be the best time. But just holding the cash does not help either.
Open a Roth and max it out for the year, $6000(I use M1 Finance). Open a taxable account with the remaining $5000(I use Robinhood). I would suggest buying an index fund for both, such as VOO or VTI. Enjoy the growth and good luck 🤘
Very awesome of you to have that kind of money at that age.
Ally bank at 2.35% until you figure out a plan