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Anyone here have suggestions on what to do with excess money at that age besides starting a company? I'm 22 and use my excess money to max out my roth ira every

Anyone here have suggestions on what to do with excess money at that age besides starting a company? I'm 22 and use my excess money to max out my roth ira every year and keep the rest in the bank, but if there's someway to "invest in myself" I'd certainly be willing to consider it. I'm a PhD student in CS if it matters, but general advice would be preferred.

ttol 16y ago
If you're 22 and you have excess money (meaning your tax advantageous retirement contributions are maxed, your bills are all paid for, and you have 6-8 months of emergency fund), and you don't want to start your own company (and you don't want to donate the money), then you can become a small angel and help others start their companies. The reason I'm not saying things like "buy CDs", or "put it in a mutual fund", is because you're 22, this is Hacker News, and you can afford to swing for the fences and play conservatively later (eg. when you have a family that depends on you). Also, by keeping the money in the bank, you're in effect saying that the rate the bank is giving you is the best return you'll get for your money (voting with your dollars). At present time, this is most definitely not the case, so it may be beneficial to look into anything that produces a higher return than bank rates (currently maxed at ~1.5%/yr). In my experience, starting a company early yields extreme results beyond just money, and you're in a position to do so -- why, may I ask, do you say "besides starting a company"? EDIT: Not sure why I'm being downvoted. Parent poster was looking for advice on how to invest in himself with excess cash. I'm posting from experience since I've been there, and looking to hopefully get him on some track to put his cash in a place that generates higher returns than in the bank. It's silly to give the bank free use of his cash with the return they're giving him, when he could be using the same one to generate higher returns elsewhere.
- johnswamps 16y ago
  > why, may I ask, do you say "besides starting a company"? Because I'm looking for options that I'm not aware of. I didn't say I wasn't considering it.
- dotBen 16y ago
  you can become a small angel and help others start their companies It's actually really HARD to become a small angel if you are not an accredited investor (something like $300k/year income and/or $1m+ assets). I have some money I am looking to play with but I'm not accredited status and most startups (if properly advised) won't touch non-accredited investors.
- deleted 16y ago
  [deleted]
hugh3 16y ago
At the age of 23, with five thousand dollars to spare and no commitments outside a PhD program? Take a trip around the world.
aspiringsensei 16y ago
If you'd like to sock away a bunch of extra tax-deferred cash, variable annuities (low cost ones from vanguard/tiaa-cref) can be OK options....Assuming you're genuinely saving for retirement at 65, the present value of a tax deferral over the next 43 years is pretty big.

ttol 16y ago

If you're 22 and you have excess money (meaning your tax advantageous retirement contributions are maxed, your bills are all paid for, and you have 6-8 months of emergency fund), and you don't want to start your own company (and you don't want to donate the money), then you can become a small angel and help others start their companies. The reason I'm not saying things like "buy CDs", or "put it in a mutual fund", is because you're 22, this is Hacker News, and you can afford to swing for the fences and play conservatively later (eg. when you have a family that depends on you). Also, by keeping the money in the bank, you're in effect saying that the rate the bank is giving you is the best return you'll get for your money (voting with your dollars). At present time, this is most definitely not the case, so it may be beneficial to look into anything that produces a higher return than bank rates (currently maxed at ~1.5%/yr). In my experience, starting a company early yields extreme results beyond just money, and you're in a position to do so -- why, may I ask, do you say "besides starting a company"? EDIT: Not sure why I'm being downvoted. Parent poster was looking for advice on how to invest in himself with excess cash. I'm posting from experience since I've been there, and looking to hopefully get him on some track to put his cash in a place that generates higher returns than in the bank. It's silly to give the bank free use of his cash with the return they're giving him, when he could be using the same one to generate higher returns elsewhere.

johnswamps 16y ago
> why, may I ask, do you say "besides starting a company"? Because I'm looking for options that I'm not aware of. I didn't say I wasn't considering it.
dotBen 16y ago
you can become a small angel and help others start their companies It's actually really HARD to become a small angel if you are not an accredited investor (something like $300k/year income and/or $1m+ assets). I have some money I am looking to play with but I'm not accredited status and most startups (if properly advised) won't touch non-accredited investors.
deleted 16y ago
[deleted]

hugh3 16y ago

At the age of 23, with five thousand dollars to spare and no commitments outside a PhD program? Take a trip around the world.

aspiringsensei 16y ago

If you'd like to sock away a bunch of extra tax-deferred cash, variable annuities (low cost ones from vanguard/tiaa-cref) can be OK options....Assuming you're genuinely saving for retirement at 65, the present value of a tax deferral over the next 43 years is pretty big.