Ask Terry Questions Where should a younger, single person invest his money?

Where should a younger, single person invest his money?

By Terry Savage on May 17, 2018 | Investments

Hi, my son is 30 yrs old, single, good job with a checking account of $46,000 and increasing. Looking for what he could invest a good chunk of this money into. Thanks for any help you can give me.

Terry Says

I can think of only two good choices at this point.  If he has a 40l(k) account at work, he should contribute -- especially if his company matches his contribution.  When he joins the plan he will have to choose investments within the plan.  At his age, he should buy the S&P 500 stock index fund.  And keep contributing monthly.  And never be scared out of his decision by big market moves.  Over the long run that has always been a winning strategy -- and at age 30, he has a very long run ahead of him. If he doesn't have a 40l(k) plan at work, then he should contact Fidelity or Vanguard directly (800-FIDELITY or 800-VANGUARD) and open a ROTH IRA -- He won't get a tax deduction, but he can contribute $5500 of earned income every year and ask them to put it into their S&P 500 stock index fund.  Same advice as above.  He won't get a deduction, but over the years the money will grow tax-free to be taken out at retirement. The other possibiity -- if he knows he is staying in one place, same job --is to use the money to buy a house-- or for the down payment.  As we've all learned, there is no guarantee that home prices will always climb.  And he might someday marry and find his new bride doesn't like that house!  But over the long run, I'm pretty sure it will be a good investment.

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