Ask HN: What should I do with $10k?

#1

Post by geuis » Mon, Mar 21, 2011, 8:53 PM UTC

Kind of reaching a new point in life. I (will) have some cash saved up soon. Looking for ideas...

Re: Ask HN: What should I do with $10k?

#2

Post by redredraider » Mon, Mar 21, 2011, 9:02 PM UTC

Buy a guitar. Learn to play it.

Re: Ask HN: What should I do with $10k?

#3

Post by kirpekar » Mon, Mar 21, 2011, 9:02 PM UTC

http://www.daveramsey.com/new/baby-steps/

Go step by step

Re: Ask HN: What should I do with $10k?

#4

Post by davidw » Mon, Mar 21, 2011, 9:03 PM UTC

If you want to invest it in something besides yourself or your business, "A Random Walk Down Wall Street" ( http://amzn.to/fxzgVU ) is a good read.

Re: Ask HN: What should I do with $10k?

#5

Post by briandoll » Mon, Mar 21, 2011, 9:07 PM UTC

davidw wrote: post #4

If you want to invest it in something besides yourself or your business, "A Random Walk Down Wall Street" ( http://amzn.to/fxzgVU ) is a good read.

Agreed. And if you want the elevator pitch version instead of reading that awesome-but-very-long book: "buy index funds".

Re: Ask HN: What should I do with $10k?

#6

Post by geuis » Mon, Mar 21, 2011, 9:17 PM UTC

redredraider wrote: post #2

Buy a guitar. Learn to play it.

Got one. Needs a new G string. Broke it while tuning it. Hence step 2, learning to play. =)

Re: Ask HN: What should I do with $10k?

#7

Post by redredraider » Mon, Mar 21, 2011, 9:20 PM UTC

redredraider wrote: post #2

Buy a guitar. Learn to play it.

I wouldn't spend it or invest or anything. Leave in the bank or a CD and just feel secure enough to leave your job if you start hating it. The economy is bad.

Re: Ask HN: What should I do with $10k?

#8

Post by andymoe » Mon, Mar 21, 2011, 9:43 PM UTC

Leave it in the bank/taxable account for a rainy day/opportunity/blood-in-the-water scenario.

10K is not really enough to create a "Balanced" portfolio of stocks. You could buy mutual funds or bet on a few stocks but that's not as valuable as having 10k sitting in the bank at the ready.

If you are not already, start automatically saving cash and automatically contributing something to an 401k/IRA. Pro tip - Make sure it's automatic and the money gets saved before it hits your regular bank account. If you have the opportunity to contribute to a 401k do that - especially if they match. If you don't then get an IRA. [1] You could create one and stick 5k in there this year and deduct it from your taxes and continue to build up that war chest again.

Also, see if you are eligible for a ROTH IRA[2] instead of a regular IRA.

[1] http://goo.gl/vFXKs (All of you do this now!) You probably want an IRA and a "Taxable Account" so you can buy CDs (and one day stocks)

[2] http://goo.gl/EJIUS

[3] I am not a professional financial advisor your results may vary etc...