What NEXT….where should my money go?
I’m wondering what should I do with my money. I’m 25 yrs. old and I have a full-time and part-time job. I invest about 7% of my earning into my retirement account. I have approximately ,100 in the account. I live at home, so I’ve been fortunate enough to pay off one of my student loans(perkins) and I owe approximately ,770 on my other loan(federal direct). I plan to go back to school for my master’s in the Fall of 2011. My goal is to purchase a home once I finish school in 2013. I have approximately ,000 in various savings accounts. I don’t have any credit card debt, so next year and while in school I plan to aggressively pay down my last student loan(I imagine once I finish my graduate program I’ll be in about ,000 debt, so I want to get rid of some of this debt). I know educational debt is good debt, but debt is debt when you’re trying to purchase a home. By 2013, I believe I’ll have about k saved.
My question is what should I do with my money now? The person who handles my retirement account is trying to encourage me to invest in life insurance. I don’t see a need for life insurance since I don’t have dependents or liabilities. What makes sense for me? I’m considering investing in real estate in the Las Vegas area. I see some properties listed as low as ,000. I also figure it may sound nice, but with all the foreclosures in Las Vegas the property value could be horrible. Would it be smart to invest in Vegas now and buy in Los Angeles 4yrs from now. What should I do? I feel like I’m letting my go to waste and it’s not working for me!
2 Responses
Erin
09 Feb 2010
VSFT
09 Feb 2010
You need a proper financial plan. It is very dangerous to answer these kind of questions with short 1-2 sentence answers. You need to prioritize your goals and financial objectives, understand your tolerance for risk. Proper, detailed inventory of your assets and liabilities is also important. All of this is necessary to create a comprehensive financial plan that you can then use to strategically and accurately guide your decision-making.
see http://www.valuesoftinc.com for what I mean.
regards,
person who actually cares about you doing this the right way

I would wait on the graduate degree program and save at least 20 percent of the purchase price of the home and then pay off all of your debts then take night classes if you want to while you still work.
If Vegas is where you want to live or rent out property then it’s good to buy it while it’s cheap.