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Money, Business & Finance Ground >> What to do with 40K


7/26/09 4:08 PM
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Givva Schitt
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Member Since: 6/21/09
Posts: 35
 
I am 24 y/o. Right now I have 40K that I don't need, possibly even until I retire. If I want to invest it for 40 years, what would be the best thing to do? I'm thinking if I were to put it into an IRA, it would turn into a nice chunk of change for when I turn 65. Any advice?
7/26/09 8:31 PM
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Givva Schitt
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Member Since: 6/21/09
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Thanks for the advice, Dutch. I've seen some articles about retirement and how much money is necessary if you want to live a good, enjoyable one, and it can be a little intimidating. I figured I might as well get a head start on it and turn some extra money into a lot of extra money for the future, before I start a family and buy a house. I'm going to put some thought into that fund you linked to.
7/29/09 6:00 PM
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DirkH
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What would be the point in placing 40K, that you already have in cash, I assume, into an IRA?

You put money in an IRA because it's pretax dollars, so if you put $100 a week in it only costs $90 out of the paycheck.

Invest it, yes. But it doesn't have to be in an IRA. Just buy stocks, ETF, mutual funds, or whatever directly. That way you can have access to your money at any time in the future without having a tax penalty.

Now that I've typed that.....a ROTH IRA might make sense because Roths are funded with after tax money, but not a standard IRA.

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