Source
r/personalfinance•
JimCrowBBC

Need help with growing funds from a summer job

Planning

Hi Reddit,

I am a college student that has finished a summer job. I made around $3.2k this summer after taxes, and I was wondering what options I have for growing my wealth. I am not worried about saving for retirement yet. Preferably, I would like to put my money in something where it can grow for the next 3 to 5 years without me having to monitor it often.

Currently, I have the option of placing it in my bank, but the returns per year are less than 2%. What options do I have available?

Posted Sep 14, 2019, 4:49 PM UTC

06
ImpressivelyLost•

Safety option is to do a CD or treasury bill for a 3 year term but that won't see huge growth. Your best option might be to go the way of a lot of people on here and invest into something like VTI which grows pretty regularly.

1
Dystopiannie​•

You can’t have low risk AND short term AND high profit.

1
JimCrowBBCOP•

Not really looking for high profit just anything better than what my bank is offering

1
keylime84•

"I'm not worried about saving for retirement yet." Those words are how so many people end up never ready for retirement. Time is on your side, put even 20% of anything you earn towards retirement, your future self will be very glad. My 17 year old funds a Roth with a goal of achieving financial idependence by 35.

1
JimCrowBBCOP•

What should I put my money in to save for retirement?

1
keylime84•

Low cost, broad stock index funds. I'd suggest the same thing my son does (through a custodial account until he turns 18). Fidelity no minimum, no fee Roth IRA, 100% in either their SP500 fund with a super low expense ratio, or my son put his money into FZROX which is zero expense. It's a Fidelity version of a "whole US stock market" fund, will track with VSTAX. Ignore the ups and downs, and don't touch it until you hit FU status. Diversify into bonds and other stuff only when you get older and are in the distribution rather than accumulating phase.

Don't be like some of my bosses that have come to hate their jobs, but can't afford to retire. I've learned to keep quiet about my plans to punch out early, generates a certain amount of resentment.

1