$1500 to Invest. Suggestions?

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Coldkilla

Diamond Member
Oct 7, 2004
3,944
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Here's my situation:

1. I'm a college Student.
2. Have about $1500 in disposable income.
3. Make about $90 a week (10$ hr), sitting in my car in a parking lot.
4. Know next to NOTHING about the stock market/bonds... etc.
5. Don't want to go out and get an impulse buy.

Other things to note:
1. No Credit Card Debt.
2. Paying my College Fee's (Only 3000 a year) as they come. I'm not in debt.
3. Car is fine, only a few years old, and have a mechanic as an uncle.

I would like to have more to invest, but being the poor college student I am, I cannot afford to loose the job I currently have (I can sit in my car and do my homework, making 10$ an hour on the days I don't have school).

I was wondering what yall would think would be a good investment idea for someone like me. (Serious suggestions please.. and to prevent the inevitable reply: No I don't do drugs/drink, so I'm not spending it on that.

I don't think I want this to be something that has to sit in some bank for 20 years before I can finally take it out of there. But you guys are the smart ones, not me.. Anyways, really looking to your replys.
 
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Coldkilla

Diamond Member
Oct 7, 2004
3,944
0
71
My Job: (In reply to question)

Parking Lot Tenant. I sit in my car, wait for people to pull in. Once they park, I walk up to them and take their money. Then I sit in my warm car, listen to the radio, read, and/or do my homework... every other day, for 3 hours at a time.. in the morning, home before 9:30am..
 
2Xtreme21

2Xtreme21

Diamond Member
Jun 13, 2004
7,044
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Originally posted by: Leros
What is your job? I'll gladly chill in my car for $10/hr.
Click to expand...

I'm gonna guess some kind of parking attendant at a parking lot.

And put it in a savings account. Never know when you might be in a crunch.

Edit: Hah I was right. :)
 
T

Tab

Lifer
Sep 15, 2002
12,145
0
76
How about you just open a savings account and leave it in there? Unless, of course you already have your three or six months savings. :)
 
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Coldkilla

Diamond Member
Oct 7, 2004
3,944
0
71
Originally posted by: Tab
How about you just open a savings account and leave it in there? Unless, of course you already have your three or six months savings. :)
Click to expand...

Actually no. It's in my checking account, just adding up.. getting slowly higher and higher.
 
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Coldkilla

Diamond Member
Oct 7, 2004
3,944
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71
Don't those take many many many years to climb up to a significant amount before making .23cents?
 
IHateMyJob2004

IHateMyJob2004

Lifer
Sep 29, 2004
18,656
68
91
mid cap index?

I'd say buy soemthign with a nice yield that is a safe investment like BAC ... but then I'd be yelled at. (cough ... or PFE)
 
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Heddis

Member
Sep 15, 2001
97
0
0
Invest in a Roth IRA. You are young, the amount of tax you probably paid is minimal compared to what you will pay later in life. Your money can grow tax free until you are retired potentially earning more, or less than 6%. Check out Vanguard or Fidelity for Roth IRA's. Once you start an IRA set it up to automatically deduct money from your bank account, you will be happy later. Let's say you invest the money into a Roth IRA, assuming you are 20 years old in college, with 45 years left until retirement at 8% you would have $47,880. It is relatively easy to invest and because of the tax penalties for withdrawing it is unlikely you will withdraw the money until you can.
 
dud

dud

Diamond Member
Feb 18, 2001
7,635
73
91

Suggest you consider putting it into a ROTH IRA.

You can invest your Roth in any manner you choose. May I suggest one of the outstanding target retirement funds (like the 2030) from T. Rowe Price.

Good luck ...
 
R

Reckoner

Lifer
Jun 11, 2004
10,851
1
81
IRA is a good idea, but a lot of the good ones require a minimum initial deposit (vanguard's is $3000). Throw it into a savings account until you can save up that amount.
 
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alrocky

Golden Member
Jan 22, 2001
1,771
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0
Vanguard is the King of low Expense Ratios of mutual funds. However if you only have $1,500 and only $1,500 that you want to invest, you may want to try T. Rowe Price instead as they are more low balance friendly. If you want to invest for the future and plan on adding more money, then Vanguard would be fine for you. But at $1,500 you're getting your foot in the door with their STAR Fund (VGSTX) which requires an initial minimum investment of $1,000. It's a well regarded balance fund.

Low Expense Ratios are important because COSTS matter. Start investing as early as possible and as much as you can. You'll thank yourself later.
 
UncleWai

UncleWai

Diamond Member
Oct 23, 2001
5,701
68
91
Originally posted by: Coldkilla
I knew there would be posts like wai's and flesh's.. i tried avoiding it
Click to expand...

Ok, you want a serious answer?
According to Milton Friedman's permanent income hypothesis, you should spend all your $1500 right now to achieve maximum level of utility. This is due to you being a poor college student and your optimal current consumption is beyond your current income level. Your small increase in current income still does not make your current income to be higher than your optimal consumption. As a result, you should spend all your $1500, preferably on hookers and weed, to achieve the highest level of utility in your lifetime.

 
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Indolent

Platinum Member
Mar 7, 2003
2,128
2
0
You can live off of $90 a week while saving money? Do you live rent free with your parents and not do anything else at all?
 
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