College student here. I'm not working at the moment. I have about 2.5k. I don't want to keep all my money in cash. I need your help on how to decide whats best way to get interest for about 1k?
Bonds? Term deposit bank accounts? Or something else? And why?
>>16926923
stock market numb nuts, bonds and CD's will net you 3-5% and you can't easily convert those to cash. the stock market returns 16% on average, and you can just buy into a mutual or index fund if you don't wanna pick them yourself
>>16926956
> the stock market returns 16% on average
Heh
>>16926956
30 dollars is not much
>>16926963
i'm not making this up, google it or stay broke I don't really care
>>16926978
yes i'm aware 30 dollars isn't a lot of money, and thats the kind of return you'll get with CD's and bonds. honestly $2,500 isn't shit, and there's no get rich quick scheme with that small of a starting stack
>>16926956
How does an index fund works? Whats the catch?
>>16926956
This b8, you better improve
>>16926956
>>16926992
>he actually believes it
>>16927029
2.5k isn't really enough for a brokerage account. There's shit like robinhood and acorn for small investing but you need to have at least some knowledge of what you're doig and you will need to wait years to see any real gains.
>>16926956
This guy is right. Buy a S&P index fund or something similar. 16% on average is wrong, it's 9.7%. It's lost some in the first six weeks of this year but is picking up again.
Which is still way, way more than you'll get anywhere else.
>>16926956
lol. Certificates of deposit return less than a percent right now, unless you are dumping a huge amount of money into one, which one thousand dollars is not.
Roth IRA. Try Vanguard for account. They have low / no minimums. Put it in a global stock ETF like VT (if you go with Vanguard) Low expense ratio is key. You're not trying to "beat the market", just go along for the ride.
