Just graduated high school! $5,000 to invest.

mwmnj · #1 (**permalink**) 06-24-2010, 02:10 AM

Hello all,

I am 19 and just graduated from high school this week. I currently have $5,000 saved that i plan on investing.

The advice in this Forbes article seems pretty sound: (cant post link until I have 15 posts. google "$5000 portfolio" and it is the first result.")

A summary of the advice provided:
-$3,000 to index fund like Vanguard Total Stock Market Fund
-$1,500 to ETF that holds bonds like Vanguard Total Bond Market
-$500 into an international stock ETF like Vanguard Total World Stock
-put it in a roth IRA
(They gave other examples besides vanguard. I only listed Vanguard because it is seeming like the best choice for me at the moment and i would like to keep all my eggs in one basket.)

I plan on making this $5,000 investment and letting it grow for as long as possible. I may make future contributions but for now lets say i plan on just letting it sit. Since this is extra money I have saved from a part time job this year and I have zero living expenses due to the generosity of my parents I would say I have a moderately high risk tolerance.

Any advice for me or input on the advice provided in the Forbes article?

I am completely new to all of this and have no where else to look for assistance besides the internet so hopefully the members here can answer some of the questions I am bound to have along the way and point me in the right direction towards making the best decision.

C9Consulting · #2 (**permalink**) 06-30-2010, 10:17 PM

The only advice that I can tell you, is that when it comes to investing do your homework. Never do something anyone says, just because they say it. Even if warren buffet himself told you how to invest your saved money, you do your homework to make sure that everything checks out the way you think it will. A lot of articles that are written like that, aren't what most people should listen to verbatim. It's more of a guideline of how to invest.

Forbes generally gives great advice, just take it with a grain of salt.

barkerfinance · #3 (**permalink**) 07-08-2010, 06:43 PM

ETF's are a good place to invest...obviously you don't want to manage the money yourself but have a high risk tolerance...i think you could put your money to better use with the risk you are willing to take...I personally don't think bonds are a good idea right now because when rates go up bond prices go down...and rates are pretty damn low right now. People here will definitely help you down the road when you have questions though

Fin.Guru · #4 (**permalink**) 08-09-2010, 02:51 PM

This is one of those things were people are indecisive so I would just tell them to demarcate themselves now. You are young, no debt, this is discretionary money. Do you want to have a chance to make more money? Or do you want to play it safe like grandpa? My advice even though it is bias and sided toward higher risk tolerance, is pretty sound. But of course!! do your research before you start investing. Learn to invest in stocks and research the companies. Only you care most about your money. The knowledge isn't established immediately but it will probably be the best investment and multiplier of better returns.

Nick · #5 (**permalink**) 10-10-2010, 01:58 AM

an index fund is a good way to go for long term investing

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