A total newbie asks what he should do with his moolah.
Another newbie (posing as an ex-spurt) responds:
“If you have many of investing years ahead, consider just putting it all into the Vanguard Total Stock Market (VTSMX if less than 10k but more than 3k, VTSAX if more than 10k, or the ETF: VTI). You have to take on sensible risk if you are young and want your money to grow! Don’t worry about risk until you are in your 50s and 60s, is my opinion.”
“All in on stocks” is what usually passes for sensible risk these days.
What does this kid do if he needs to use this money before then?
Good luck with that.
Emergencies. A new car. A new computer. Paying for a wedding. Starting a business. Going on a much-needed vacation. Christmas. Birthdays.
These things (are supposed to) take a back seat to paper gains in the market.
But seriously, what does this kid do?
The same thing every other young (and not-so-young) buck does. They dig themselves a debt hole that’s bigger than their mountain of savings. Meanwhile, they brag about the fantastic gainz they’re making on that miniscule amount of moolah they have.
Even Yours Grinchly finds it difficult to believe people like that are still out there.
When you’re young, you never think about losing your shirt. When you’re older, it’s about all you CAN think about.
…because time is short, you don’t have enough of it, and it’s squeezing your resources like a teenager squeezes a pimple.
Eventually, something pops.
Anyway, you might not be able to rewind the clock and tell your younger self to avoid all the bad decisions you made in your youth, but you CAN make changes now…
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