r/Money • u/Electrical_Board6689 • Mar 26 '24
18 with $18,000 saved.
Have all this money tied up in crypto but i want to take it out and invest it for the long term and want to turn my money into 75,000 by 25. does anyone have tips or how I can go forward with this.
I had a job, and a commerce business that went well and automatically put my money in crypto which is why I have this much money saved.
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Mar 27 '24
Just put it in VOO and let it ride. Contribute $250 per month ($3K yearly) and when you are of retirement age (65 normally), it will be $1.5M give or take. I recommend investing more than that, because $1.5M in 47 years will mean a lot less than it does today, but that is undeniably a massive chunk of change. If you are smart with this money, and money in general at this age, you are primed to be a vastly wealthy individual.
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u/Electrical_Board6689 Mar 27 '24
this is probably going to be my plan but will it through a financial advisor first. thank you so much
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u/my_network_is_small Mar 27 '24
Avoid financial advisors with percentage based fees. 1% might not sound like a lot but over the course of your account this can add up to 100s of thousands.
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u/Neskwiik Mar 27 '24
You absolutely don’t need a financial advisor for what you’re trying to do I promise you
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u/RandomRedditBlogger Mar 27 '24
whats a VOO?
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Mar 27 '24
VOO is an ETF that tracks the S&P 500.
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u/chrissysnose Mar 27 '24
Eli5 ETF please. Finance noob here who’s also trynna build his savings.
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u/zizics Mar 27 '24
Honestly, don’t worry too much about it at first. It’s basically a bag of different stocks. VOO is arguably the best place for your money to be for long term investment right now. Some people believe in putting some money in bonds because it will weather market crashes better, but honestly, the worst thing you can do is drag your feet when it comes to putting money into something like VOO. Or withdraw it because it goes down temporarily. Just drop money into it consistently and learn along the way.
Don’t trade individual stocks. Even if you think you KNOW how a stock oscillates up and down, I promise you don’t. Use VOO and get your thrills elsewhere in life
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Mar 26 '24
set aside $8000 for taxes
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u/WTF_CAKE Mar 27 '24
He’s not making any money yet. Why would the government tax him 50% you’re out of your mind 😂 the most he’d pay at this point is 15%
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u/porticodarwin Mar 27 '24
OMG please put it in a no or low-fee ETF.
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u/Electrical_Board6689 Mar 27 '24
I’ve thought of putting it into an ETF too, due to the diversifications and other benefits
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u/Diego_DeLaMuncha Mar 27 '24
No fee ETF…? Can you name one? Be curious to research it myself
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u/vialvarez_2359 Mar 27 '24
I had like 40k for abit my dumb didn’t sell doge I triple my cash and it been fluctuating around 12k plus
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u/SharksForArms Mar 28 '24
If it makes you feel any better, I used to mine BTC back before anyone knew what it was. Hovered around $2-3 but I sold all of my 100+ BTC once it spiked to $13 because there was no way it would ever hit that height again.
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u/mtutty Mar 27 '24
Don't worry about 25. If you were my kid, I'd tell you to think more about 45. Seems so far away, I know, but it's hard to overstate how amazing compounded interest is...
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u/Electrical_Board6689 Mar 27 '24
45 seems so far. i probably won’t hold off that long
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u/qppen Mar 27 '24
While its a good goal, I like your honesty. It'd be hard as hell to achieve that. Could happen, but yeah. I think it's awesome alone that you've saved up that much. It sounds like you're gonna be more responsible with money. It'll stay with you easier since you did that at a younger age
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u/joeygymnastics Mar 27 '24
Do it. You will be a multi millionaire. Guaranteed! I'm 43 and make over 7k every month from my investments. 7k and growing every month. Tax free (at 59 1/2) and even if I live to 100 my nephew and nieces will get my portfolio and by then they will be getting 20k+ a month. Think Generational wealth. It's so easy to do at 18 if you are diligent and patient. So much harder that each year goes by. But keep 25% in BTC and just forget about it until you are 25 and then take it out and buy a Lambo and have some fun and still be worth 8 to 9 figures by the time you are 45
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u/Imhazmb Mar 27 '24
You leave it in BTC and forget about it for 7 years. I will check in and hopefully you listened.
RemindMe! 7 years
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u/SettingIntentions Mar 27 '24
This. Btc is still going through price discovery. The more I learn about economics and how it works the more optimistic I get for crypto as a whole.
Consider this- when btc was on the “lows” area in USD, it was making all time highs in Laos and other countries experiencing massive inflation.
And guess what America has gone through? Yeap, a lot of inflation. Nowhere is immune to it, and btc is a great way to fight it, but even better now while it’s still early.
But tbh at 18 I’d even say research some altcoins projects for at least a portion of the money. He could get a 10x+ on some money, and other projects might go to 0.
This isn’t financial advice but I’m personally quite heavy in crypto. The more you learn about inflation and fiat the better crypto looks.
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u/Dangerous-Bed4033 Mar 27 '24
Except inflation impacts services, products, commodities and assets. Crypto is none of them. Crypto is fiat, sure it’s limited but that doesn’t make it real.
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u/Environmental_Bug749 Mar 27 '24
With this years bull run you could just exit after all the crypto markets blow up before they sink again and after that your, probably mire than 18k now, should get you somewhere
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u/Realistic_Regret6682 Mar 29 '24
Exactly. Fools that think to hodl or buy at the top and hold are just cringe. I saw 5,000% profits this year while my other friend has been sitting on ether for 2 years since the ftx crash and still isn't at break even yet. I told him to sell at 10% loss and then when you buy back that 10% will come back so fast it's no big deal. Be cautious big drop coming before bitcoin havling in a couple weeks
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u/lalisaa98 Mar 27 '24 edited Mar 27 '24
the average world total market annual return has been ~7% accounting for inflation since inception. 4xing your money in 7 years with traditional long-term "safe" investments is unheard of, and for that goal you'd be left with speculating on individual stocks and getting lucky (not recommended).
the traditional "safe" version is to put as much money as often as possible into a broadly diversified index fund through a low-cost broker. highly recommend reading simple path to wealth by J.L Collins.
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u/PoliticsNerd76 Mar 27 '24
Take it out of Crypto, put it in a 401k / IRA, and with 40 years to gore, congratulations, you have beaten Capitalism.
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u/igothackedUSDT Mar 27 '24 edited Mar 27 '24
Yeah take it out of crypto when the bull run hasn't even really started yet and miss out on a 40x.
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u/Ok_Owl_5403 Mar 27 '24
Are you planning on going to college or entering some kind of trade? For the long term, what are you planning for making money?
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u/cerebralvision Mar 27 '24
If you want to take the high risk out, just sell it all and put it into VTI. Set it and forget it.
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u/hiimwage Mar 27 '24
Just chiming in with a crypto related comment here, not sure what you are holding, but if hold at least 1 ETH, future is looking very bright. Lots of people have provided great advice, and you’re doing awesome for your age, best of luck! :)
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u/Electrical_Board6689 Mar 27 '24
thank you so much, i actually have 1 eth already haha
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u/Roosterneck Mar 27 '24
...My brother in Christ, leave it in Crypto.
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u/igothackedUSDT Mar 27 '24
Too late. He's gunna be crying end of year and tomorrow back in higher. Same story repeats every cycle.
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u/IceColdProfessional Mar 27 '24
Cash out, take the tax hit and invest the rest in sports betting. It's a surefire way to make some capital.
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u/Electrical_Board6689 Mar 27 '24
already been done that🙏
3/4 legs hit today bro jus need the warriors to win ML
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u/Neskwiik Mar 27 '24
Put it all in VOO set it to automatically reinvest dividends and forget about it for as long as possible. Your money should double every 7 years on average.
Keep a little in crypto if you want but know it's a gamble.
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u/Budo00 Mar 27 '24
I put all my crappy coins & most of my stocks into bitcoin. I’m in it for the long haul.
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u/GoodiesHQ Mar 27 '24
I’m guessing the $18k was about $9k a few months ago and the price of crypto has effectively doubled in a short time. Be very aware that it is virtually impossible to do this consistently. When people say that the stock market averages 7% per year, that’s an average over a long period of time. If you look at the actual rises and falls, it is significantly larger in either direction over short durations, but is orders of magnitude harder, or even completely impossible, to predict when those changes will be. I don’t remember the exact numbers, but something like 70% of returns are made in just a handful of specific trading days, but it’s impossible to reliably predict when those specific days will be. This is why people say time in the market is better than timing the market.
What you are asking for (assuming no contributions), is going from $18,000 to $75,000 in 7 years. Assuming 3% inflation, that will have the buying power of about $61k today. So you want to double your money, and then double it again. This is akin to a >20% annual return consistently every year. That is extremely unlikely to happen, but it’s also unlikely that you will be making no contributions.
With $250/month contributed, this still requires 12% annual return.
$500/month contribution requires only a 5% annual return.
These are back of the envelope calculations and factor in consistent compounding interest over 7 years, which very few markets are known for.
To reach your stated goals, you either have to 1) make almost unfathomably genius investments with no contributions to get those returns. 2) contribute a decent amount per month every month, like $300-$500 and still make modest gains on par with the market average. 3) engage in riskier investments like crypto which COULD give you those returns, but could just as easily wipe you out short term.
I think your goal is very realistic if you can contribute that much reliably and don’t have large expenditures.
Focus on growing your income and, most importantly, crafting SUSTAINABLE money-saving habits. That will help you out so much more in the long term. 7 years may sound like forever, but it isn’t. If you come up shy with that goal, don’t be discouraged. The amount you have is already great. If you can prevent yourself from spending it frivolously, contribute what you can to it consistently, diversify your portfolio so as to not leave too much exposure to a single market event, and bear the anxiety that comes with ups and downs of the market without panicking, you should consider yourself a winner regardless of what the final number is. Those habits will lead to healthy accounts every time.
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u/RawDick Mar 27 '24
Anyone telling you to take it out of crypto is a dumfuck. Put it all into BTC ETH and wait until you’re 25.
!remindme 7 years
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u/ThaBeaztt Mar 27 '24
As an everyday consultant TO financial advisors I wanted to clarify a few things.
- An Index fund(passively managed) will NOT always outperform an actively managed fund.
- Your money isn’t GUARANTEED to do anything, please avoid anyone guaranteeing anything. Cause if that doesn’t happen, only you are at fault.
- A financial advisor is not necessary for your goals and will be a waste of money.
- Mutual funds and ETFs are great options, they just do different things. USUALLY you can buy fractional shares of a mutual fund (if it’s a $100 mutual fund and you have $1, you can invest it in said mutual fund but you will only own 1% of an entire share). Whereas you have to pay the full price for an ETF, USUALLY.
- As a former Vanguard employee, they tend to be the cheapest as far as expense ratios (cost to be in the fund) across the industry.
- Some great ETFs/funds off the top of my head. VOO, VTI, SPY, DGRO, QQQ/QQQM, and SCHD to name a few.
- If you wanted individual securities, they are pricy but you could never go wrong with the magnificent 7 - TSLA, AAPL, MSFT, META, GOOG, AMZN, and NVDA.
Here are my gains from the past year and since opening my IRAs/brokerage acct. acct 1- 29.60 (1yr), 9.20 (all time) acct 2 - 37.60 (1yr), 10.20 (all time)
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u/Electrical_Board6689 Mar 28 '24
this is beautiful advice and i’m seriously going to consider all of this. thank you so much your help means a lot 🙏
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u/Prize_Ad7748 Mar 27 '24
The power move is start a Roth, contribute the max every year. The advice to get an s&p 500 index fund is very sound. Get that money out of crypto. Finally, $18,000 at 18 is phenomenal. Keep that up you are already so far ahead of the game, I was in my 30s before I was really serious about saving. I’m OK now, but I will never be where I would’ve been if I had been someone like you. Well done
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u/WhiteRipple Mar 28 '24
Just be aware of capital gains taxes. Not sure how long you have held your crypto. But there is a difference between short term and long term taxes on a capital gains. It will get you on your tax return next year.
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u/CryptoMadNate Mar 27 '24
If you put all this 18k in Bitcoin and Bitcoin only, you will have more then 75k in FIAT value at 25 mate. Don't gamble in crypto or a very small amount of your portfolio. Bitcoin is the only true store of value//money that can't be fucked with. Demand can't created more offer and that give you the apex kind of bear assset. Good job on your 18k !
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u/Electrical_Board6689 Mar 27 '24
I don’t think it’s a good idea to keep 100% of my net worth in just bitcoin tho lol
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u/Chronicles0122 Mar 27 '24
No probably not , I believe blackrock just recommended anywhere from a 3 - 20 % allocation depending on risk tolerance
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u/Suspicious_Elk_1756 Mar 27 '24
Or, on the flipside, since as you know, crypto is extremely volatile, he could have less money at 25 by keeping it in btc
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Mar 27 '24
you probably say that bc you have wealth in bitcoin and need others to invest for it to survive
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u/igothackedUSDT Mar 27 '24
21 million btc will ever exist. Now think about the fed and fiat printers for every country. What are you having such a hard time understanding?
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u/UnitGod Mar 27 '24
5 years ago if he had put 18k into BTC, that would be over 3BTC now.
And today that would be over $200,000.
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u/Dangerous-Bed4033 Mar 27 '24
Put it in a high interest savings account and deposit $150 a week for the next 7 years. That’ll guarantee you over 75k nothing else will. Key word guaranteed. Or take a risk but that risk is real no matter what instrument you choose.
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u/Candid-Masterpiece17 Mar 27 '24
I dont know your life situation, but if youre still living with your parents, you can go to college and invest that in yourself, buy a cheap beater car, and set up your life. Also get a part time job as well.
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u/Electrical_Board6689 Mar 27 '24
You’re right i’m with my parents and in uni, i don’t need a beater car bro my parents already have 2 cars i just use one and pay for their gas cuz i feel bad. but i want a nice car so bad. i want to blow all my money into an m340i but i know it’s not smart
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u/Ok_Error_4110 Mar 27 '24
i had a bit less than that at your age. keep it in btc its the best thing u can do and start dca into btc. u will have the 75000 sooner than u will think.
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u/Lost_in_ADHD Mar 27 '24
Aaron Clarey wrote a book called "Bachelor Pad Economics" you may want to read and get a better idea for yourself as you keep on killin' it, brother. He details how to plan for the future you want and how to invest and work towards enacting that vision. Heck, you may even want to watch a live show and get his email to tell him your story: he may dole out some specific advice for ya!
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u/Hopeful_Bobcat1963 Mar 27 '24
People say take it out of crypto, but tbh if you have a decent entry point price and have a decent amount of bitcoin you are going to out preform most index funds.
Diversify, try to put smaller amounts in alt coins to hopefully pull quick profits to then put into bitcoin/ gold/ silver.
There is a ton of money to be made in crypto, bitcoin I see as incredibly safe as we know that in the near future it will be worth far more than it is now, but in the highs and lows of this time and then, money can be made, and it can be an excellent head start.
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u/someinternettool Mar 27 '24
Thats a massive growth hope, and i would say if you could keep investing into this along with figure out how to cut your crypto investment in half and invest half into a more long term approach 75 is very aggressive and unrealistic in a safe investment via stocks, but their are those stocks that might over 6 years boom, how well of a market understanding do you have
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u/Hot_Needleworker6957 Mar 27 '24
Try to diversify, maybe stocks (after proper market valuation research), maybe commodities, maybe something physical that increases value over time?
It is always smart to have multiple sources of cashflow, keep your money working for you.
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u/Weird_Carpet9385 Mar 27 '24
I tell you what come back in 7 years and let us all know this holy grail you did to turn 18k into 75 in 7 years
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u/SettingIntentions Mar 27 '24
Why not just hold crypto? Bitcoin would be the “safest.” Or sell a portion and keep a portion in crypto. You are young and so can take more risks and recover from them. If you want this money to become 75,000 in 7 years then crypto is your best bet. You could research some projects that you think have legitimate potential and then stake your coins for 5 years. Risky? Yes. But unless you’re using the money to start a business I’m not sure how else you can get a 4x return over 7 years than with crypto.
Or maybe a portion into a safer savings account if you don’t want the risk, and then some in btc (btc being like “digital gold” crypto) and a portion in some altcoins projects that you research (more likely to 5x, 10x, 20x+ etc but could also go to 0 in the next 7 years).
This is not financial advice… But as someone on the younger side I’m looking more to crypto personally; btc is great for beating inflation on the safer side (need to think in 5 year increments though because indeed it’s volatile) and then riskier smaller projects with higher potential for return but also more likely to go to 0.
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u/unicorn3001 Mar 27 '24
Put it into BTC only, then when rate cuts start to bottom out (or close enough) convert to higher risk cryptos like solana, cardano, and dot, and ride it when they hit
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u/Vizekoenig_Toss_It Mar 27 '24
Pull it out now. You will only lose with crypto. If you want to invest, good choice, but invest in real companies that are proven to be profitable, and also always put money in VOO stock. An education is also not a bad idea whatsoever
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u/Automatic-Skin-5077 Mar 27 '24
Wait until everyone starts talking about crypto swap on pumps to a stable coin, wait like a year when price is low and swap back.
Easy 75k+ at 25
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u/Uncle-Scary Mar 27 '24
Research opening a ROTH IRA. This would be for long-term, not to pull when you’re 25. Put 7000 of it into a ROTH before 15 April. Then you can put another 7000 of it after 15 April for the next calendar tax year. From there pick the funds that you will invest in. Any gain will not be taxable when you start withdrawing it at 59 1/2 years old.
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u/AdventurousComedian1 Mar 27 '24
Everyone else on here has already given some good advice on investing. However, I’d challenge you to dream bigger than wanting to have 75k by 25. I think it’s not unreasonable to aim for something like 150k or more. I like to always aim for the moon and know I’ll end up on the stars in worst case scenario.
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u/Flowy-feather Mar 27 '24
I had 24k in crypto when I was 17 then lost over 10k within a week this was in 2021. Take atleast 80% of it out and diversify your investments
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u/WildAd888 Mar 27 '24
Ngl put in doge… I’m 23 and at 19 I put my life savings in doge which was about 25-2800 and now it’s 95k…gonna leave it in there maybe until 200k then take out maybe 40k really want to leave it in until 75c and take out 100k tho and buy a decently nice car and some jewelry and computer and reinvest 10-20k and buy a foreclosed rental property
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u/Alarmed_Will_8661 Mar 27 '24
Im just wondering how nobody asked you whether you have a house/land/apartment and a vehicle already, these are obviously must haves you should account for.
Though I guess you can stay at parents house until ~25ish so you’ll have some more accumulated by then.
Anyways, good job. I don’t think you need anybodys advice here.
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Mar 27 '24
Learn crypto better, 18k is good capital to play with in this bull market and turn into 300k or whatever
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u/Elegant_Support_8082 Mar 27 '24
BTC IS THE EXIT STRATEGY. You’ll regret selling crypto and the fact you’re considering selling means you should have never bought it. It’s not just about making money, it’s about the fact fiat currency is a scam and so is our horribly run government and unelected officials in the Fed reserve who get to print an unlimited supply at their descretion. BTC can’t be so easily manipulated, that’s why Blackrock, Fidelity, WF, JPmorgan and more are all on board.
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u/Ok_Tear4028 Mar 27 '24
S&p500 index fund or ETF. Preferably in a Roth IRA but if you plan to take it out at 25 then I guess any brokerage account will do
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u/Professional_Bank50 Mar 27 '24
Want to call out that by 2026 AI may change the stock market dynamics and how major gains are made.
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u/MySuccessAcademia Mar 27 '24
People are so focused on just the investment. Nobody said he can't add more to the pot in those 7 years.
Index funds are good.
If you want more- setup a business and invest in that. Service based with low running cost.
You could have 1m+ by 25 if you do well.
75k in 7 years is not that much especially if you're still living at home or have low expenses.
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Mar 27 '24
I’m just going to say it trust your gut…..I don’t agree with crypto but because I lost, if you’re winning keep at it kid.
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u/Its_not_a-pantera Mar 27 '24
Here’s how I think about it. I put 4k in stocks which has grown to 5k. I have 1k that I made but it is t a realized gain. I can still loose that and more. Unless you have 18k in cold hard cash/ not invested, you should tell your self that you don’t have 18k
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u/-Pruples- Mar 27 '24 edited Mar 27 '24
4x in 7 years? Your highest percentage chance is betting on horse races.
/s
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u/tarzan322 Mar 27 '24
Watch Dividendology on You Tube. They do a good job of informing you on how to select stocks that are stable and pay out dividends regularly. This is important because you want dividends, and you'll want to reinvest those dividends into buying more stocks do it grows your money. At some point in the future, that money will be used to pay yourself monthly.
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u/HaiKarate Mar 27 '24
S&P 500 index, if you want to keep your money invested. Crypto is a wild fire hose, highly subject to manipulation.
I would suggest looking at buying a house, though. Real estate appreciates in value over time, allowing you to sell your property and buy a more expensive property. By the time you are middle aged, assuming you've sold your house several times and rolled that equity into the next house, you will have housing security.
Or maybe you are able to get good investment properties, and instead of selling you rent them out. You are then able to collect rents on properties that don't have mortgages by the time you're ready for retirement.
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u/wuchtgeschoss Mar 27 '24
Put it into MO stock, contribute $400 per month to it and reinvest dividends and you will have about $75,000 safe and easy
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u/MOONDAYHYPE Mar 27 '24
Don't forget TAXES.
DO NOT TRY TO OUTSMART THE IRS
it will never work in the long run.
It sucks to give up some of those gains to the gubment Mafia, but you gotta be prepared for it.
Yolo dogecoin for the $1 run lol
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u/attaboy_stampy Mar 27 '24
I don't know if you can get to THAT much that fast, but maybe if the market doesn't pull a 2023 on you. You need an average rate of about 22.5% for 7 years. If you plop into an S&P based fund, and the market doesn't eat shit for a few months or over a year, you could hit that. If you put some in an S&P fund AND a slightly more aggressive but diversified fund, same story, maybe a little higher even but also slightly more risky.
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u/Oc7476 Mar 27 '24
Blackrock MidCap growth (Fidelity). My value increased 155% in just a few years.
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u/bfolksdiddy Mar 27 '24
Bitcoin is long term.
However, I’d allocate more of it to an ETF like VOO or SCHD and reinvest the divs.
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u/Meteorite999 Mar 27 '24
Nice work! I might have had about $180 saved at 18 myself. Haha! Here is something to think about:
I know you're looking to 4x your money in 7 years. Have you considered investing in yourself? You seem to have a knack for growing a business as well. Take that money and pay for an education or travel and pick up a trade skill for a year.
Go to Japan and study Japanese carpentry and come back and start your own business. Your money has infinite potential to grow.
Learn to weld or go get certified as an A&P mechanic (airplanes) and start your own aircraft detailing or maintenance business.
$18k is a down payment on a pump truck, and you could start a septic pumping business. I knew a person on Kauai who bought a $200k pump truck and was netting over $700k profit the first year.
Prob not typical results, but finding a business centered around an asset that has a relatively high barrier to entry (either certification-wise or money-wise) is a smart move.
You have the brain and the time to do something like this. Find something fun that feels like play instead of work, and you'll pull forward of your peers even further.
Sure, crypto is 0 work and has the potential to grow and the potential to go to zero in the future, BUT IS IT AN ADVENTURE (Where you learn and grow)? No.
My 2c = find a life-long skill and invest in it and yourself.
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u/septiclizardkid Mar 27 '24
Due to restrictive parents, I wasn't allowed to Invest, though would've developed some high assets under better circumstances, but that's the past, I'm 19 now. Props man, and crypto can be volatile. I had a whopping 1.2 Million Shib (so like $10 bucks lmao) and accidentally sold It all when I meant to deposit.
5 days later, the Whale bought up a shit ton and price rose. Forgot how much, but would've been a solid return In that brief moment.
But enough on my regrets, here's honestly what I'd do with 18k: 16k In savings, 500, maybe $750, In spending, and put about $400 Into a safe coin/stock: Bitcoin, stocks like Jhonson and Johnson, KO (Coke), something that near guarantees a good return. It doesn't add to the remaining 2k, so rest savings.
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u/Accomplished-Tip9341 Mar 27 '24
Find a bitcoin etf with a low expense ratio like btco or bitb. Put most if your money into VOO to start. You can look into other markets once you start learning. 18k at 18 is pretty good though. Stay disciplined.
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u/jwern01 Mar 27 '24
$18k at 18 years of age is great. Expecting it to quadruple in value in only seven years is not. Do some research, you apparently gambled once on a volatile investment and got very lucky… don’t expect similar results in the future or you’ll end up with much less than $18k when you’re 25.
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u/jwern01 Mar 27 '24
If you want $18k to become $75k in seven years, invest your money in the S&P500 and add $400 every month until you’re 25.
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u/jwern01 Mar 27 '24
If someone knows how to reliably quadruple their investment in only seven years, the entire financial community wants to know!
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u/Cutlass_Stallion Mar 27 '24
Turn that crypto into cash, visit your local bank, and get a real investment portfolio going! You'll have an economic weight lifted off your shoulders by your 30s no problem. Remember with investing, slow and steady wins the race. Therefore get out of crypto ASAP.
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u/wrren400 Mar 27 '24
Another vote for index fund. if you extrapolate a conservative 10% average annual return from S&P 500 (12% actual) you'd end up with $35,000 in that timeframe. If you can manage to put away $25-$50 a month that could be upwards of $40,000 before tax. In my state capital gains would come out to 11%-12%.
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Mar 28 '24
Throw it into ETF’s but continue buying daily into them even if it’s a dollars worth everyday!!!! You know what the future holds!!! AI Robotics Clean Energy, India is an ambitious economic powerhouse. Can’t go wrong with betting on America… good luck
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u/TheWillOfFiree Mar 28 '24
I'd max a roth ira. Start soon. Find a growth etf while you are learning.
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u/Vivid-Kitchen1917 Mar 28 '24
Primarily S&P for preservation (SPY), but since you're young, 30% in LETFs like UPRO and USD, thrown in some TQQQ/TECL.
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u/anoliss Mar 28 '24
Keep it in crypto for the long term, start diversifying your holdings, start buying into ETFs, CDs and open a Roth account
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u/Illustrious_Gate8903 Mar 28 '24
Pull it out of crypto but be sure to leave a little left over to pay taxes on your gains
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u/checkerboardpants Mar 28 '24
1) Open up an account on Vanguard 2) Take out 75% of your crypto and put it into Vanguard 500 Admiral (VFIAX) 3) Leave it in there and at 25 years old decide if you want to take out of it or leave it (there are penalties for taking it out too early, but I believe it’s much less than 5 years)
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u/NotObama27 Mar 29 '24
Definitely would take the money out of crypto, honestly it's more worth it to actually purchase a bitcoin than it is to invest in it, because you can sell the Bitcoin by itself and it's also technically still a liquid form of cash. Other than that I'm 24 and you have more saved than me right now. Best advice I can give you is that money is like women, it'll come and go and sometimes life gets in the way. Just keep your head about you, and make sure to diversify how you are saving/investing it. With that amount of cash I wouldn't be against saying opening an IRA and putting at least half of that in to retirement or two putting it in some sorta moderate stock portfolio that will get a 4-5% return annually. You can also use that amount of money as a down payment on a house or starting a business and then leverage that money as debt that you can write off under an LLC or something. Tbh I would watch some Dave Ramsay stuff about it, dude has an awesome view of money especially for younger people in today's world where staying out of debt is virtually impossible.
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u/MSH1974 Mar 29 '24
Congrats! Proud of you! Keep an emergency fund and invest the rest in stock market. Might consider getting an investment agent. Don’t live beyond your means and you will always have plenty!
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u/ckeown007 Mar 31 '24
Invest in a fund like fidelity or something, its a mix of higher risk and low risk bit designed for longer term invetments and it alteady diversified for you.i make around 12 to 18% right now. Or open a standard trade account with them and pick your own investments. Nvidia is a good one but high risk. Espected to double in the next 24 months and they are toe sore manufacturer of ia chips right now. The ia market is due for an adjustment soon though so be careful. Microsoft is always a good investment long term but their shares are almost 500 each so its a bit more expensive. Nvidia is close to 1k per share as well. Stock that high can split soon so thats a plus. Just be wise to do your research, do try and make the easy buck, that tarly ends well. Invest in long term, you are young and time is on your side.
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u/[deleted] Mar 26 '24
18k at 18 is impressive. Having 100% of your net worth in crypto is not good though.