Hello! I’m currently working before I start graduate school and want to invest some of the money. I will probably not work for the next 3 years and will only invest this year (max $6,000). I was leaning towards investing in a Roth IRA, however will this be worth it? I know it’s better to start investing earlier but will the money do much since I won’t be continuously investing after? Is there a better option/ route to look into to get more out of my money?
Hi Victoria,
That’s great that you want to invest early! The earlier you invest, the better, and the Roth IRA is a great place to put your money. If you put $6,000 into a compound growth calculator at 7%, the difference between the future value after 40 vs. 43 years is $20,000!
I’m not sure if you have/plan to have student loans, but instead of investing, another option is to pay those off ASAP!
Fortunately, I do not have any loans I’m going to take out. I’m interested in index funds, but I would like some on the riskier side since i’m 22. Do you have any recommendations?
That’s awesome that you don’t have any loans!
I recommend reading these posts to learn which index fund(s) would be right for you:
Good luck! 