OT: Graduate student looking to invest money

  • Creator
    Topic
  • #170109
    Excited_CPA
    Member

    I’m about to graduate from college and start a full-time job at a public accounting firm. I have a couple thousand dollars that are sitting in a savings account, collecting less than 1% of interest.

    I’ve been too lazy up until now to put my money elsewhere, but now I”m thinking I want to invest it in an IRA or something. Does anyone have any recommendations on where to put my money?

    Thanks for the help!

    BEC 04/14/12 87
    FAR 08/28/12 88
    AUD 10/06/12 94
    REG 02/09/13 91

Viewing 12 replies - 1 through 12 (of 12 total)
  • Author
    Replies
  • #342679
    Anonymous
    Inactive
    #342680
    Anonymous
    Inactive

    I have a Vanguard Roth IRA and am happy with it so far.

    #342681
    Anonymous
    Inactive

    I can manage those 2K for you…let me know if you're interested…:)

    #342682
    jeff
    Keymaster

    Use it as an emergency fund. Don't invest it.

    AUD - 79
    BEC - 80
    FAR - 76
    REG - 92
    Jeff Elliott, CPA (KS)
    NINJA CPA | NINJA CMA | NINJA CPE | Another71
    #342683
    LittleMoe
    Member

    I agree with Jeff. Check out http://www.daveramsey.com. His book the Total Money Makeover gave me the kick in the pants (and guidance) I needed to get my finances in order and really begin to know how to make my money work for me!

    AUD 4/12/12 79
    FAR 5/29/12 76
    REG 8/2/12 82
    BEC 8/30/12 72 Retake 10/18/12 76!!! DONE!!!!
    ExamMatrix, Wiley Books, NINJA notes and audio
    LICENSED ALABAMA CPA 11/30/12

    #342684
    jeff
    Keymaster

    I've been through Dave's Counselor Training program 🙂

    AUD - 79
    BEC - 80
    FAR - 76
    REG - 92
    Jeff Elliott, CPA (KS)
    NINJA CPA | NINJA CMA | NINJA CPE | Another71
    #342685
    Anonymous
    Inactive

    @Jeff

    You don't believe in investing ANY money? I split mine between checking/savings and stocks/IRA…

    #342686
    Witchkizzle
    Participant

    @Acct

    Jeff's point is don't invest if you only have “a couple thousand bucks”.

    That should be emergency fund money or go towards paying down debt. The following are the principals surrounding everything Dave Ramsey has ever said. It is really just common sense money advice that “your grandparents would tell you” as he likes to say.

    Step 1: $1,000 in an emergency fund.

    Step 2: Pay off all debt except the house utilizing the debt snowball.

    Step 3: Three to six months of savings in a fully funded emergency fund.

    Step 4: Invest 15% of your household income into Roth IRAs and pre-tax retirement plans.

    Step 5: College Funding

    Step 6: Pay off your home early.

    Step 7: Build wealth and give.

    These are adaptable to your situation in my mind, while others adhere strictly to the steps and teachings. For example, my wife and I are 24 and 25 respectively with no kids and just bought a house in April. The only debt we have is our new mortgage. We have no car debt, no student loans, etc. We invest over 15% (before employer matches and profit sharing contributions) into our retirement accounts. We haven't started saving for our kid's college because we have no kids.

    So we can't say for certain “we are on step 6” or “we are on step 4” like you might hear other people say.

    Dave also doesn't like credit cards. We have ONE credit card that we pay off every month which we use for freebie flight miles and goodies like that. We have had monthly statements as high as 10,200 and recently just had two 5,500 months in a row, but they get paid every month no matter what. We only buy it on the card if we have the cash to back it up.

    It may seem like a dumbed down approach to finances, but I go to bed every night and sleep peacfully without every worrying about paying our bills, car breakdowns, home repairs, or anything else that might surprise us.

    Texas CPA
    Licensed 03/12

    #342687
    LittleMoe
    Member

    @Jeff I thought I remembered seeing you post somewhere about Dave Ramsey before but I wasn't sure. That's awesome!!

    I never knew how much peace of mind I could have by getting my finances in order and having an emergency fund. There is nothing like it. But yeah, to the original question, keep a highly liquid emergency fund that you don't touch unless it is an emergency. Once you do that, invest to your heart's content!!! At least that's what I would do!!

    AUD 4/12/12 79
    FAR 5/29/12 76
    REG 8/2/12 82
    BEC 8/30/12 72 Retake 10/18/12 76!!! DONE!!!!
    ExamMatrix, Wiley Books, NINJA notes and audio
    LICENSED ALABAMA CPA 11/30/12

    #342688
    Anonymous
    Inactive
    #342689
    Anonymous
    Inactive

    @Witchkizzle

    Thanks for the explanation!

    #342690
    Mayo
    Participant

    @Op, if you have debt with high interest rates, pay those off before investing into anything. A 8-10% return on investments won't mean much if you have a credit card with 20+% interest.

    Mayo, BBA, Macc

Viewing 12 replies - 1 through 12 (of 12 total)
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