Young Investor Seeks Guidance on Building Wealth
A 19-year-old college student has taken to online forums to seek advice on investing his $70,000 savings. The business major, who has been working as a server and running a reselling business, feels overwhelmed by the numerous investment options available.
A Strong Foundation
Warren Buffett’s wise words, “If you don’t find a way to make money while you sleep, you will work until you die,” resonate with the young investor. He wants to create a passive income stream to secure his financial future. With a credit score in the 700s and a year of credit card management under his belt, he’s ready to take the next step.
Seeking Wisdom from the Community
The 19-year-old turned to Reddit’s r/FinancialPlanning community for guidance. Redditors jumped into the conversation, offering valuable insights and advice. Here are the top three suggestions for first-time investing:
Diversify with VOO’s S&P 500
Multiple Redditors recommended investing in VOO’s S&P 500, citing it as a low-cost, long-term strategy. One commenter emphasized the importance of understanding the difference between ETFs and mutual funds, highlighting VOO’s benefits, such as lower fees and no capital gains distributions.
QQQ’s ETFs: A High-Growth Option
QQQ’s ETFs were also popular among Redditors, who suggested the young investor consider this high-growth option. One commenter advised splitting funds between VOO’s S&P 500 and QQQ as part of a more expansive investment plan.
Max Out Roth IRA
The majority of Redditors agreed that maxing out the Roth IRA is a wise move. They recommended contributing the maximum $7,000 for 2024 and again in 2025, emphasizing the importance of consistent investments.
Real Estate Opportunities
Real estate can be a lucrative investment option, but it often requires significant capital. However, platforms like Arrived Home’s Private Credit Fund offer access to short-term loans backed by residential real estate with a minimum investment of just $100. This provides an opportunity to diversify a portfolio and earn high returns without directly owning property.
By taking the first step and seeking guidance, the 19-year-old server-turned-reseller is on the path to building a secure financial future. With the right strategy and a bit of patience, he can create a passive income stream that will serve him well in the years to come.
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