Have extra $9k in checking. How do I make it grow?

Withdraw all the cash in small denomination bills....head to the nearest strip club, get a seat close to stage and buy a lot of lap dances. That ought to make it grow. Or go to Chippendales, if that's your thing.

Buy roughly 150-200 barrels of oil, and hold onto it until the price goes back up near $100/barrel. Double your money!

tboonepickenswejo wrote:

Buy roughly 150-200 barrels of oil, and hold onto it until the price goes back up near $100/barrel. Double your money!

This. I purchased 1k shares of UCO and I expect to do very well in the next few years on this investment. Oil is a finite resource.

You're too young to invest. You may get run over by a bus tomorrow - live for the now.

Hookers and blow is the only rational choice for an extra $9k.

Have the cute chick in the cube stroke it after happy hour.....

trying2invest wrote:

Hi everyone. I am a 2014 college grad and have been working full time about 6 months. I am making about 65k per year and in addition to putting 10% in 401k I have accumulated about 9k "extra" in my checking account. I already have an emergency fund. I do not have any loans and do not plan on making any large purchases any time soon. What do I do with this 9k? Open an IRA? ETF? S&P 500 Index fund? Im open to a moderate amount of risk.

krispy kremlin wrote:

Given the inevitable coming deflationary death spiral, thanks to nearly a decade of liberal asinine Keynesian monetary policy, I'd say leave it in the bank account. You'll be able to buy one of those phony champagne socialist's mansions in Brookline for that amount in ten years after the wheels come off.

*De*flationary? I thought we were going to suffer hyper-inflation? Now it's *de*flation?

I wish you guys would get your stories straight.

trying2invest wrote:

Hi everyone. I am a 2014 college grad and have been working full time about 6 months. I am making about 65k per year and in addition to putting 10% in 401k I have accumulated about 9k "extra" in my checking account. I already have an emergency fund. I do not have any loans and do not plan on making any large purchases any time soon. What do I do with this 9k? Open an IRA? ETF? S&P 500 Index fund? Im open to a moderate amount of risk.

Having graduated around the same time, you are well above the curve so congratulations. While I would normally advocate for a conservative investment, I very much doubt you can save that much and aren't living at home. Now that you are financially secure, I would move out, rent an apartment, and attempt to carve out your own life. Its no longer about paying the bills, its about personal growth. If you are making 65K right out of undergrad, you most likely work in some sort of professional service capacity. That means there is significant upside to your future earnings. So, 9K compounded for an extra year or two is nothing compared to the intangible skills you gain when you figure out how to make it on your own.

Tinfoil Hat wrote:

False. There are no jobs for recent graduates in the Obama economy -- particularly jobs that pay a living wage.

Strong username to post ratio. Keep that tin foil hat on. Wouldn't want big brother reading your mind waves.

I actually do not live at home. I live in the midwest and pay about ~1000/month for rent/utilities/parking. I may a monthly car payment of like $260. I dont live too extravagantly after that. Im working on establishing a monthly budget on Mint.com but think I should be able to sock away about 1k/month in extra investments with my current income and lifestyle.

I feel like 10% in my Roth 401k is already well above my peers, but if I can afford it I suppose I might was well just jump to 15%. That would definitely detract from my "extra" investment fund, but its still being invested.

So far it sounds like I might just go 80% domestic stock index 20% international like one poster recommended and aim to add 1k/month. Thoughts?

Thanks for all the help so far guys.

Frozen concentrated orange juice futures.

I mostly agree with this but I think your prioritization of doing things like paying down cheap and tax advantaged debt like student loans and mortgage principal ahead of maxing out tax advantaged retirement contributions is an expensive mistake - a double mistake in that you lose two separate tax benefits with one move. Obviously consumer debt accumulating at very high interest rates like 20% credit cards and crappy car loans will quickly outrun the tax benefits of saving for retirement but student loan and mortgage debt are at much lower rates.

In my mind (assuming the money is extra), there are three potential things to do with that money:

1. Put it in a conservative stock portfolio i.e. index fund, IRA etc. (let the bankers earn you money)

2. Invest in yourself via fun activities (enjoy yourself)

3. Invest in yourself by starting a business (increase your earning potential)

If you want a forth option you can always:

4. Give it away to something you believe in (e.g. feeding the hungry)

Go on a bad ass vacation. Don't be one of those old guys that saved all their money their entire lives but doesn't have the energy to use it.

A good financial plan involves lots of things, not just investing.

People who SAY that you should invest rather than pay off debt are people who want to rationalize being in debt and then don't usually invest enough to offset the interest you pay on said debt.

Fact of the matter is that life has bumps in the road, so you should PLAN to set up an emergency fund and get rid of all debt other than mortgage (and IN SOME CASES not student loans). You do this to limit RISK. Once the debt is gone and you still have an emergency fund, when a big expense comes up, you pay for it with your emergency fund and slow replenish rather than acquiring more debt that costs interest.

Once you have the emergency fund in place AND you are putting 15% into retirement accounts made up of stocks in mutual funds, and you have ZERO other debt, THEN you pay down the house. You are simply eliminating risk AND saving yourself money that is guaranteed.

Once the house is paid for, you can now sink a TON of money into the market if you want.

Goal is to retire with zero debt including a paid for house. Stock market going up as much as you like isn't guaranteed, so to diversify, you pay down debt and eventually get rid of it completely. The sooner you have a paid-for house, the more money you have to do stuff with...save to buy a rental property or vacation property, invest more, easily pay for college for kids out of your income, etc.

IRAs are overrated. I'd avoid putting any money in an IRA. In many scenarios you will even come out ahead on taxes by avoiding using an IRA to invest.

Put it all in a Vanguard broad market index fund and then forget about it for the next 40 years.

Here are some good stocks that pay a fat dividend.

BBEP

VNR

FSC

PSEC

ck3237 wrote:

Here are some good stocks that pay a fat dividend.

BBEP

VNR

FSC

PSEC

Those energy names won't make those dividends with crude plummeting

Max IRA for year, 5.5k, use there remaining 3.5k for an index funds, overall market.

TLW wrote:

Max IRA for year, 5.5k, use there remaining 3.5k for an index funds, overall market.

I forget to type ROTH IRA.