How should I invest 50K?
I am 24 and have absolutely no experiences with investing.
After payaing off student loan and cost of living/expenses, I will have about 50K earning/saving by Dec 2009.
So I plan to distrubute them in the following wayL
401K –> 16.5K (I contribute the max allowed)
CDK –> 20K (I will use this for future house buying)
Roth IRA –> 5K (Will open with Vanguard or Fidelity, likely to do with Vanguard Retirement 2050 Fund)
Scottrade –> 7K (I buy stocks from about 10 companies I like or know GE, Boeing, BOA, Citigroup, Macys, etc)
Savings –> 2 K for emergency/extra spending
I plan to buy a house in like 4-6 years.
Please help me and give me suggestions. I am not sure if I am making the right choices or not
That sounds like a great plan!
Since you gave us a plan instead of asking a general question like “How should I invest $50k?” it sounds you’re willing to learn things yourself pretty quickly, good job!
I wouldn’t change a lot of what your plan is, other than maybe beefing up your savings account with a little more dough just in case. Also, be careful about your stock choices once you open up a trading account. Don’t give into temptation, greediness, or become a day trader.
Other than that, you’re good to go buddy. If you want, you might want to invest time into learning how to be a better investor..like, real estate, stocks, business, or bonds, etc.
Good Luck.
