#18yearoldfinance #financialadvice #investingtips
Maximize Your Returns with Strategic Investments
As an 18-year-old with 20k in assets, you have a unique opportunity to make your money work for you. Here are some key considerations and advice to help you make the most of your financial situation:
1. Evaluate Your Current Assets
– Take stock of your current investments, including your BoFa CD, HYSA with Capital One, cryptocurrency holdings, and brokerage account.
– Consider the maturity dates, APY rates, and growth potential of each asset to determine their future value.
2. Diversify Your Portfolio
– While your HYSA offers a stable 4.3% APY, consider diversifying your portfolio to potentially increase your returns.
– Look into investing in index funds like VOO or VTI to spread your risk and tap into the long-term growth potential of the stock market.
3. Plan for the Future
– Think about your long-term financial goals, whether it’s saving for a major purchase, building a retirement fund, or starting your own business.
– Consider setting aside a portion of your assets for future opportunities or emergencies to ensure financial security.
4. Seek Professional Advice
– Consider consulting a financial advisor or investment professional to get personalized guidance on managing your assets.
– They can help create a customized investment plan based on your risk tolerance, financial goals, and time horizon.
5. Stay Informed and Stay Engaged
– Keep yourself informed about current market trends, economic news, and investment strategies to make informed decisions.
– Stay engaged with your investments by regularly reviewing your portfolio, rebalancing when necessary, and adjusting your strategy as needed.
In conclusion, as an 18-year-old with 20k in assets, you have the opportunity to set a solid financial foundation for your future. By evaluating your current assets, diversifying your portfolio, planning for the future, seeking professional advice, and staying informed and engaged, you can maximize your returns and achieve your financial goals. Good luck! 🚀💰
A CD is a very conservative instrument, probably not the right one for someone at the start of their career. I’d suggest a balanced portfolio, but with a focus on higher risk / return traditional investments. Crypto is fine as long as you’re not over exposed and know that it is incredibly volatile. Just make it a smaller % and dollar cost average it so you’re not exposed to market swings.
Lastly look carefully at the cost of managed funds as that can eat up your returns.
Lastly make sure your assets don’t mess up any aid you might get for schooling.
Take $7k out of your HYSA and use it open a Roth IRA at your non-Robinhood brokerage of choice, e.g., Fidelity, Schwab, Vanguard. Once the account is open, make sure it’s invested in VOO/VTI/similar.
Do this again with another $7k in 2025, if you have it. Unlike the gains in your Robinhood account, you won’t pay taxes on your Roth IRA gains. The downside is that you don’t get to take out your gains until you’re retirement age, but the extra 2-3% compounding you get now will make a big difference once you’re old.
I’m not going to fall for this BoFa joke again
> I have about 10k in a HYSA with Capital One which is at around 4.3% APY.
You really screwed up here. Had you waited for the BofA CD to mature, you could have put $20K in Cap One, and then gotten that interest rate PLUS an extra $300 for the promo they’re having.
Stop opening new accounts for free.
I’d tell you to get $15K together and do the Chase $900 offer, but without the direct deposit from a job that you say you’re quitting, that’s not going to work for you.
Wait for the BofA CD to mature, and do the Discover $150 offer.
Take half of it and put it in CFD, and then take half of it and put it in short-term ETF.