im faster Posted April 4, 2012 Report Share Posted April 4, 2012 Okay so I've decided to go back to school full time. Since I have the GI bill to pay for everything and i am able to get student loans. I thought it a good idea to take the loans and invest them. I have VERY little knowledge about investing and would like some advice. Looking for something that its unlikely to loose money. and profits do not need to be Huge. I would be investing around 3,500 to start off with. What are your thoughts? Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted April 4, 2012 Report Share Posted April 4, 2012 Okay so I've decided to go back to school full time. Since I have the GI bill to pay for everything and i am able to get student loans. I thought it a good idea to take the loans and invest them. I have VERY little knowledge about investing and would like some advice. Looking for something that its unlikely to loose money. and profits do not need to be Huge. I would be investing around 3,500 to start off with. What are your thoughts? Get into some high quality, dividend paying stocks, and add to your total investment funds slowly. Think big brands like johnson and johnson, proctor and gamble, mcdonalds, ge, caterpillar, exxon mobil, etc. They may only pay 1 to 4% annual dividend, but it beats savings bonds, cds, etc. Getting caught up in penny stocks or flavor of the week stocks are a way to lose a ton of money fast. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted April 5, 2012 Report Share Posted April 5, 2012 Don't borrow to invest..... What if your loan payments become due and the market gets cut in half (again...) Quote Link to comment Share on other sites More sharing options...
Tractor Posted April 5, 2012 Report Share Posted April 5, 2012 Yeah don't borrow to "invest" borrow to "trade." But you better know what your doing or you'll be stuck and to know what your doing will take a lot of study, research, and planning. Trading will and should require many hours per week spent on studying charts and following the major news sources before you can even begin to see the patterns and start to make actual intelligent stock trades and not just speculate. Quote Link to comment Share on other sites More sharing options...
oh8sti Posted April 5, 2012 Report Share Posted April 5, 2012 Don't borrow to invest..... What if your loan payments become due and the market gets cut in half (again...) thats what i was thinking Quote Link to comment Share on other sites More sharing options...
im faster Posted April 5, 2012 Author Report Share Posted April 5, 2012 Okay after doing some thinking.. I have 3800 in debt 1 loan $1,182.xx apr 16.75% 1 credit card $2,688.xx Apr 12.9% total of $3,870.xx The school loan is SUPER low APR I believe it would be more benificial to pay off my Loans (no plans on using my credit card.) and pay off a higher school loan with a lower APR opening my credit up (I do plan on buying a house within 2 years.) Why would this be unwise to do??(Other than a risk of running up my credit card again(which i will not be doing. its going in a block of ice in the freezer) Quote Link to comment Share on other sites More sharing options...
Gergwheel1647545492 Posted April 5, 2012 Report Share Posted April 5, 2012 Don't borrow to invest..... What if your loan payments become due and the market gets cut in half (again...) +1 Quote Link to comment Share on other sites More sharing options...
Tractor Posted April 5, 2012 Report Share Posted April 5, 2012 That is the best thing to do. Those interest rates are nasty and if your planning to buy a house you'll want the best credit score you can get for sure. BTW that $1,182 16.75% load is costing you $197.99 per month just in interest. Get rid of that thing now and you'll be in a much better position to invest. I could think up a lot of places I could invest that $200/mo and you'd be doing well. Your paying $550/mo in interest if thats all your paying towards your debt. So get rid of it and your $550/mo richer. Thats almost a house payment on a 100K place FYI. Quote Link to comment Share on other sites More sharing options...
im faster Posted April 5, 2012 Author Report Share Posted April 5, 2012 BTW that $1,182 16.75% load is costing you $197.99 per month just in interest. Get rid of that thing now and you'll be in a much better position to invest. I could think up a lot of places I could invest that $200/mo and you'd be doing well. Hmm.. my payment is only 80.00 a month. and what kinda of places? Quote Link to comment Share on other sites More sharing options...
Tractor Posted April 5, 2012 Report Share Posted April 5, 2012 Well as AWW$HEEET mentioned the big dividend payers are always good. I like Scotts Miracle grow myself. I swing trade it and make a bit every year and its got a 2.4% dividend payout. If your paying $80 per month I think your credit card debt is increasing monthly unless they are doing something really nice for you. My wife had the same thing going on when we got married. We were poor as hell and I made her eat rice until we paid those damn things off. Only took about 8 months and she found out it was well worth it. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted April 5, 2012 Report Share Posted April 5, 2012 Just remember as time goes on if you eat up all your loan money and get in trouble, you won't be able to discharge them should shit hit the fan for you. Quote Link to comment Share on other sites More sharing options...
Littleguy Posted April 5, 2012 Report Share Posted April 5, 2012 Okay after doing some thinking.. I have 3800 in debt 1 loan $1,182.xx apr 16.75% 1 credit card $2,688.xx Apr 12.9% total of $3,870.xx The school loan is SUPER low APR I believe it would be more benificial to pay off my Loans (no plans on using my credit card.) and pay off a higher school loan with a lower APR opening my credit up (I do plan on buying a house within 2 years.) Why would this be unwise to do??(Other than a risk of running up my credit card again(which i will not be doing. its going in a block of ice in the freezer) If you are smart you will do this, pay off the student loan, and not take out anymore student loans in the future. Like Tim said, it comes with a low rate but it never goes away until it is paid back. You will get a much better, and safer, return paying off all of your debt and then saving cash to invest. Quote Link to comment Share on other sites More sharing options...
Littleguy Posted April 5, 2012 Report Share Posted April 5, 2012 Also, if you are not an intelligent/experienced investor and you get into trading you are basically just gambling. Quote Link to comment Share on other sites More sharing options...
im faster Posted April 5, 2012 Author Report Share Posted April 5, 2012 Thanks. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted April 5, 2012 Report Share Posted April 5, 2012 Okay after doing some thinking.. I have 3800 in debt 1 loan $1,182.xx apr 16.75% 1 credit card $2,688.xx Apr 12.9% total of $3,870.xx The school loan is SUPER low APR I believe it would be more benificial to pay off my Loans (no plans on using my credit card.) and pay off a higher school loan with a lower ) This would be a wiser choice. But burn the card instead of freezing it. I can just picture you thawing the ice cube and paying for the fall kegger BTW that $1,182 16.75% load is costing you $197.99 per month just in interest. Get rid of that thing now and you'll be in a much better position to invest. I could think up a lot of places I could invest that $200/mo and you'd be doing well. Your paying $550/mo in interest if thats all your paying towards your debt. So get rid of it and your $550/mo richer. Thats almost a house payment on a 100K place FYI. Good intentions, and correct generalizations,... But You forgot to divide by 12. 16.75 is the ANNUAL rate. Not monthly. It's costing him about $17 a month in interest. Quote Link to comment Share on other sites More sharing options...
Rally Pat Posted April 5, 2012 Report Share Posted April 5, 2012 *sigh* Don't borrow to invest. Preferably, don't borrow at all. http://www.daveramsey.com Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted April 5, 2012 Report Share Posted April 5, 2012 That is the best thing to do. Those interest rates are nasty and if your planning to buy a house you'll want the best credit score you can get for sure. BTW that $1,182 16.75% load is costing you $197.99 per month just in interest. Get rid of that thing now and you'll be in a much better position to invest. I could think up a lot of places I could invest that $200/mo and you'd be doing well. Your paying $550/mo in interest if thats all your paying towards your debt. So get rid of it and your $550/mo richer. Thats almost a house payment on a 100K place FYI. lol wut? it isnt costing him 197.99/mo in interest. too high, ur off.... Quote Link to comment Share on other sites More sharing options...
Tractor Posted April 5, 2012 Report Share Posted April 5, 2012 Ah yeah annual rate. Lol with that in mind I'd not even bother with paying them off, except for the "wanting a house soon" Quote Link to comment Share on other sites More sharing options...
Supplicium Posted April 5, 2012 Report Share Posted April 5, 2012 with 3.5k I would put it in a dividend or high yield bond fund like JNK etf or SWDSX Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted April 5, 2012 Report Share Posted April 5, 2012 judging by that ticker and your explanation, is that a junk bond fund? Quote Link to comment Share on other sites More sharing options...
Supplicium Posted April 5, 2012 Report Share Posted April 5, 2012 judging by that ticker and your explanation, is that a junk bond fund? https://www.spdrs.com/product/fund.seam?ticker=JNK Quote Link to comment Share on other sites More sharing options...
10phone2 Posted April 5, 2012 Report Share Posted April 5, 2012 You should contact your CC to see if they have any 1-2 yr 0% balance transfer specials going on that you can enroll in. Even though it's not a long term solution, you can move all of your debts to one 0% apr to save, buy time, and get out of your 16.75 apr. Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted April 5, 2012 Report Share Posted April 5, 2012 pay off your debts first, never invest with someone else's dime (unless you do so professionally and have pieces of paper on your wall saying you're qualified to do so), and stay away from the stock market. considering everyone i know who says they're a winner in the stock market, i find it more believable that people are terrible at math than there being no losers in the market. invest with the expectation that it is a good way to protect your assets in the long-term future, rather than expecting that you will see a return on your investment in the short term that you can spend. Quote Link to comment Share on other sites More sharing options...
iwashmycar Posted April 5, 2012 Report Share Posted April 5, 2012 I would find a 0% for 12-18 months to transfer the high interest to, or at least as much as possible of it. You could use student loans to cover what you cant balance transfer. You will still be earning interest on those student loans, but not much. Then try and pay it all off. Student loans are definitely some of the cheapest money you can borrow!. I would never suggest investing it though. Go easy on them regardless. They are no fun to live with, trust me lol. Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted April 5, 2012 Report Share Posted April 5, 2012 Okay after doing some thinking.. I have 3800 in debt 1 loan $1,182.xx apr 16.75% 1 credit card $2,688.xx Apr 12.9% total of $3,870.xx The school loan is SUPER low APR I believe it would be more benificial to pay off my Loans (no plans on using my credit card.) and pay off a higher school loan with a lower APR opening my credit up (I do plan on buying a house within 2 years.) Why would this be unwise to do??(Other than a risk of running up my credit card again(which i will not be doing. its going in a block of ice in the freezer) Just pay the crap off! With your GI Bill you should be able to cover that in 2-months. No way you are to busy to have a side gig AND go to school. Save up for your emergency fund, good nest age, and then start saving for your 20%+ down payment. Don't even think about buying a house until you've got all those areas covered. When that's done then start your 15%+ a month investment account (if you can't swing it now). Dont' you have a TSP from the miltary? Quote Link to comment Share on other sites More sharing options...
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