Investing $20,000
My nephew has $20,000 in his savings account. It is the only money he has and he wants to invest it and protect it He is 31 years old Should he put it in a CD for 2 plus years or T bills? Does he open an account first? What are your recommendations ? Thank you
Terry Says
Whoa — both you and he need to understand the inherent tension between “investing” and “protecting”!
Investing ALWAYS involves risk of loss!
His first investment should be a copy of The Savage Truth on Money, still available on Amazon. It explains that key info very clearly.
Then if he is working, he might open a Roth IRA and buy a mutual fund with part of his money — knowing this is a very long term bet on the future of America. The rest can be left in a money market fund for emergencies, while he continues to build savings for next year’s IRA contribution.
