need some financial advice, ATOT

[StevenYoo]

Originally posted by: zebano

Originally posted by: SoulAssassin
Just dump it in one of the 5% banks like Emigrant Direct.

These are both good pieces of advice. The first step is to get more information about your loans. I know that with my school loans, they did not accrue any interest until I was out of school. I wasn't savvy enough to do this then, but if you took out a larger than necessary loan, you could put it into a CD or a 5%+ savings account (ING/Emigrant Direct are popular ones). The reason I recommend these options is that they have guaranteed returns. As long as the interest on this is greater than the amount of interest you are accruing on you're loans, it's a great strategy (just don't break down and spend the money).

yeah I have the 5.05% HSBC online savings.

 

[SoulAssassin]

Originally posted by: StevenYoo

Originally posted by: zebano

Originally posted by: SoulAssassin
Just dump it in one of the 5% banks like Emigrant Direct.

These are both good pieces of advice. The first step is to get more information about your loans. I know that with my school loans, they did not accrue any interest until I was out of school. I wasn't savvy enough to do this then, but if you took out a larger than necessary loan, you could put it into a CD or a 5%+ savings account (ING/Emigrant Direct are popular ones). The reason I recommend these options is that they have guaranteed returns. As long as the interest on this is greater than the amount of interest you are accruing on you're loans, it's a great strategy (just don't break down and spend the money).

yeah I have the 5.05% HSBC online savings.

Then, assuming the interest on your student loans in deferred as well, dump the money there. If interest is accumulating and the rate on your student loans is >4% and you can make payments on it now, you might want to consider starting to pay it down. I would recommend having at least a couple months of living expenses in a liquid account (such as HSBC) before making the payments on the loan though.

edit: stay away from individual stocks unless you want to invest in the 'buy soul assassin a new car' stock. The rate of return is absolutely guaranteed (to be 0%), you get a paper certificate (and that's all you get), and you can withdraw the money anytime you want (that I agree you can which is never).

 

[alrocky]

Originally posted by: StevenYoo
I want to start... or some other kind of long-term investment vehicle

Ask here. Also check the Reference Library for suggested reading.

Vanguard's STAR mutual fund (VGSTX) has a $1,000 mimimum initial purchase. All other Vanguard funds are $3k or more. T. Rowe Price is a lot more low balance friendly as you can get in their mutual funds with a $50 a month auto investment plan.