Investing small amounts of money.

HoLeChit · Jun 21, 2015

I'm cashing in on an old 457 investment account, I'll be coming upon $3800, $2800 after taxes. Best way to go about using this? I have about $3200 in debt, aside from my car. This money could put me very close to paying off debts. However, I was seriously considering taking $600 to purchase a toy (prob a new gun) and then using the rest to pay off debts. However, are there any worthwhile ventures I could invest in with such a small sum of money and make my money work for me?

WhileI would love to be debt free(or at least leaps and bounds closer), I feel that finding a way to make my money work for me would be a more profitable scheme in the long run. I can and have been paying double or triple my minimum payment on my debt for a while, so paying it off is not a problem. My question is, how do I go about making my money work for me? Buy up some affordable highly desired guns and wait for the next gun control scare? Buy up some stocks and hope for the best? I love economics/investing and can do alright with investing. I'm just looking for a fresh mindset.

Thoughts? Ideas?

nofearfactor · Jun 21, 2015

Get ready for 2800 different ideas asking this around here....... I have been pondering seeing if any one was interested in starting an investment club or something like that. Just take a small amount and play around and see what all we could do with it.

(Tapatalk)- on the road.

BadgeBunny · Jun 21, 2015

What NFF said ... I'd not take the hit and just roll it into an eligible plan ... why give the .gov almost half of what little you have?

http://www.irs.gov/Retirement-Plans/IRC-457(b)-Deferred-Compensation-Plans

Here's a little light reading to consider ...

RyanSixer · Jun 21, 2015

Vanguard IRAs have a minimum of $3000 that averages about 10% growth per year if I remember right.

JD8 · Jun 21, 2015

You just got two pretty good pieces of advice IMO. If you don't follow that, I'd pay off debt as much as possible..

HoLeChit · Jun 21, 2015

nofearfactor said:
Get ready for 2800 different ideas asking this around here....... I have been pondering seeing if any one was interested in starting an investment club or something like that. Just take a small amount and play around and see what all we could do with it.

(Tapatalk)- on the road.

I'm not too familiar with "investing clubs"?

BadgeBunny said:
What NFF said ... I'd not take the hit and just roll it into an eligible plan ... why give the .gov almost half of what little you have?

http://www.irs.gov/Retirement-Plans/IRC-457(b)-Deferred-Compensation-Plans

Here's a little light reading to consider ...

I definitely agree with you, and I could roll it into my current 401k, however I was wanting to diversify my small portfolio, try to build some liquid equity. I cannot borrow from my 401k, and would like to have a little money in something that isn't making .02% interest in a savings account. I am alright with a little risk and having to sacrifice a little bit in taxes. I'm only 26 and have plenty of time to worry about retirement. (That may sound bad, but for the record I am already working towards my retirement) I feel that having $2800 in liquid equity that I can (possibly) make larger returns on is better than adding $3800 to my 401k that I can't touch or make much more than 15-20% returns on for the next 40 years.

I do want to be clear that I'm not trying to get rich quick though. Just for the record.

HoLeChit · Jun 21, 2015

RyanSixer said:
Vanguard IRAs have a minimum of $3000 that averages about 10% growth per year if I remember right.

Are they accessible before retirement? When I had an active 457 account I was averaging 16% returns over an 18 month period. I would like to at least match those returns. I have plenty of time to recoup losses of necessary.

Commander Keen · Jun 21, 2015

Do you have an emergency fund (preferably in cash)? Being able to quickly come up with some money without having to rely on a bank can be very handy.

ASP785 · Jun 21, 2015

You need a Roth IRA. You can withdraw the principal tax and penalty free and avoid capital gains taxes on your gains.

ASP785 · Jun 21, 2015

HoLeChit said:
or make much more than 15-20% returns on for the next 40 years.
.

On second thought if you can manage 15-20% returns over 40 years I'd recommend buying a plane ticket to Omaha with that money and interview to become the CEO of Berkshire.

Investing small amounts of money.

HoLeChit

Here for Frens

nofearfactor

Sharpshooter

BadgeBunny

Sharpshooter

RyanSixer

Sharpshooter

JD8

Sharpshooter

HoLeChit

Here for Frens

HoLeChit

Here for Frens

Commander Keen

Sharpshooter

ASP785

Sharpshooter

ASP785

Sharpshooter

Similar threads

Latest posts

Investing small amounts of money.

Here for Frens

Sharpshooter

Sharpshooter

Sharpshooter

Sharpshooter

Here for Frens

Here for Frens

Sharpshooter

Sharpshooter

Sharpshooter

Similar threads

Join the conversation!

Join today and get all the highlights of this community direct to your inbox. It's FREE!