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comment by thenewgreen
thenewgreen  ·  3543 days ago  ·  link  ·    ·  parent  ·  post: What Do I Do Now? After College.

I'm going to suggest something crazy.

    I have about five thousand dollars saved.
-You likely worked hard for this. Don't waste it frivolously. Save it. Invest it. Roth IRA?

    I’m expecting about two thousand more from my grandfather’s inheritance.
If your grandfather knew that you would end up just fine, rent is paid, car is purchased, food is in the refrigerator, what do you think he would have wanted you to use that $2k on? What do you think stood out to him as valuable memories from his youth? Make THOSE memories for yourself with that $2k.

Good luck, I'm glad you posted, it's nice to meet you justfornow





_refugee_  ·  3542 days ago  ·  link  ·  

Hell stick it in a 1 to 5 year CD!

edit: Stick it in a 1-5 year CD with ALLY BANK, this is not because I work for them (I don't) but because they offer a ridiculously great long-term CD rate and you decide a CD is a good choice for you you should get the best freakin' rate. In fact all their deposit products have very good interest rates. Places like BoA's are straight laughable.

user-inactivated  ·  3542 days ago  ·  link  ·  

    Roth IRA?

Doesn't the money put into an IRA have to be income rather than just money for it to be a tax shelter?

rob05c  ·  3542 days ago  ·  link  ·  

It can come from anything you've already paid taxes on.

More importantly, with a Roth IRA, the principal can be withdrawn without penalty (but not the interest). Which means you can use it as an emergency fund.

Whereas a Traditional IRA has huge penalties for withdrawing anything before you turn 60.

thenewgreen  ·  3542 days ago  ·  link  ·  

Probably, I have no idea. I've never had money that wasn't income.