Ask a question to other Boomeraters!

See other questions in the Financial & Legal forum

"Extra cash, what to do?"

  • cohan99
    Posted: Feb 18, 2012 07:33 PM
    Flag for inappropriate language
    Grand Junction, CO
    View Profile

    Hello all,

    I've been perusing this forum and have seen some great investment ideas thrown out there, so I thought I'd see what advice you might offer a friend of mine who has asked me to help her figure out what to do with some extra cash. Here are some details:

    -Age: 23

    -Salary: $45k/yr

    -Savings: ~$20k, sitting in a low-interest savings account

    -Debt: $0 (no student loans, car payments, etc.)

    -Properties: None (rents apartment in city, is not looking to invest in a house yet)

    -Looking at possibly going to grad school within 5 years

    -Has SEP IRA through employer, does not contribute (unbelievable, I know, but this is going to change!)

    -Has expressed interest in making a return (obviously), but doesn't want to lock down all her cash

    -Medium risk tolerance--she is a little freaked out about volatility of stock market

    What I have suggested is that she starts contributing to her IRA immediately, at least to the level of employer matching (5%). Then, there are a wealth of possibilities--Roth IRA? Mutual Funds? Money Market savings account?

    What would you suggest?


No replies have been written yet.

Post your reply

Do you have some thoughts to add or some advice to give?
Only registered Boomeraters can post replies. Log in to your account or Sign up now (it's free)



Looking for a financial advisor?

Search our extensive database of over 3,500 advisors from both independent and large firms.

Enter your zipcode below

Or use this link to find a financial advisor or find a lawyer