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Smartest thing to do with 5-10k dollars?

I seek the wisdom of the great multitude of intelligent people that pass through this sacred place.

I'm a 20 year-old college student who has saved up 10k dollars over the past 5 years of working as a lifeguard. What is the smartest way to invest 5-10k to make some more money in the short term? I'm loathe to let it languish in a savings account and I would like to have some cushion money when I leave college to pay for loans and what not.

I appreciate any and all advice!

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Don't buy gold, silver, bonds or real estate.

Your best shot between now and September, 2012 is the stock market, and probably the NASDAQ Composite and 100 indexes will do best.

You can buy QQQ or if you want more bang for the buck and more risk, buy QLD which moves double what the QQQ does, up or down.

Just my take based on cyclical movements and the fact that the Federal Reserve Bank liquifies the economy prior to elections. Of course this time they don't care because both venal candidates, Romney and Obama, are very friendly to the banking system, and only Ron Paul would be a danger to the established banking swindle.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.

What State are you living in?

We just went through massive asset devaluation in the real estate market, think about using it as a down payment on a duplex or triplex near the university you plan on attending. You should be able to find a really good deal. But hurry, the market is rising up.

If that does not suit you, try buying some silver and gold American eagles --- the closer you can get it at or near spot price , the better.

A bag or two of junk silver would not hurt as well.


Yes, please BUY this wonderful libertarian BOOK! We all must know the History of Freedom! Buy it today!

"The System of Liberty: Themes in the History of Classical Liberalism" ...by author George Smith --
Buy it Here: http://www.amazon.com/dp/05211820

Nay, when the economy collapses soon, houses will drop another

30% or more. The recent drop in housing prices was a "first correction", the real drop coming will make people crap in their pants and it will not recover anytime soon thereafter. China will eventually realize lending us money to buy their goods is a losing proposition and will stop doing so, and detach itself from our currency. Our almighty Dollar will drop below the .72 it hit a year or so ago and we will have massive inflation on every day items like food and clothing. But the economic collapse will make home Buyers as scarce as jobs so those big ticket items will drop like a rock. After a period of time we could see car prices dropping too.
Too bad we can't stock pile silver and gold for the long haul. If the Federal Reserve would do the job it supposedly was created to do, they would reign in dollars, that is tighten the money supply, in which case we would have Deflation which is good. Houses would still be lower but so would food and clothing and everything else as the value of America's currency rose. But alas, the currency corrupters have an agenda which is to destroy America, and they are winning at this writing.

I won't tell you what to do...

The best "investment" I've ever made in my life is the land where I now live.

Plenty of wildlife, spring water, fish, fowl, excellent soil for gardening, end of the gravel road, minimal taxes to the gubment, no city codes or permits.

Most people can't make the change, but I tell you, it's the BEST thing I've ever done.

short term?

short term, that's tough.

i would probably just leave it in FRNs short term. "short term" < 1 year.

10k by the age of 20?

Saved up after just working as a lifeguard? God, you're so much smarter than I was at that age. I'll just toss a idea out there:

2500 to start a mutual fund with Peter Schiff's company:


2500-3000 to buy close to 100 ounces of silver.

Maybe keep the rest around to use for tuition, minimizing the number loans you'll need.

young people have a few things old people usually don't

more time
more energy
more devil may care attitude

buy some gold coins. divide them up into a few batches, hide them well.

keep them for 20 years.

when you're 42, you'll have a handful of gold coins that may save your ass.

quick to grab and go, easy to hide, will not break or damage easily.

then go about the rest of your life getting out of debt, and staying that way.

don't touch those gold coins. just pretend they aren't yours to spend.

it's a small insurance policy.

once you start to make money, pay off your school debts, and then start to get ahead.

you can then do additional copper/silver/gold/tangibles investing, plus other things.


p.s. you didn't tell us anything about your debt situation.

if you're going to finish college soon, with only 10k debt, use the 10k savings to wipe it out. and you are a free man.

if it's not so soon, or you are going to end up with 30k to 50k of debt from college, my original plan still holds.

For free attend Khan Academy.com on line,

Learn anything and everything that you will need in your future endeavors.

1. invest $2500 in Cooper at $3.43 or less per pound
2. invest $3000 in silver while it is below $30/oz.
3. invest $2500 in gold (small coins like 2pesos) before it reaches $1650/oz.
4. Stach the other 2k for an emergency or a global collapse.

Or go to Bangkok for a week.

It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people that pay no price for being wrong.
Thomas Sowell

I would ignore those telling you to pay down debt

Normally that would be the smart thing to do but we live in an upside down world thanks to monetary policy. I'd pay down my loans as *slowly* as possible because there's an excellent chance it will be inflated away in the next couple of years (though it could happen as soon as tomorrow for all we know).

I would look into buying physical gold and/or silver (bullion only) or buying items that you'll need when the SHTF (e.g. toothpaste, canned food, etc).

fireant's picture

Cash stash,

$100 bills. Risk is too great trying to make a few $ in today's enviroment, unless you invest in your own business.
As an alternative, half precious metals and half cash is safer because you are covered whichever way things go, and you'll preserve it.

Undo what Wilson did

If you had used this money

to buy 7 Krugerrands last week, you would have made an additional $200 by now.

Pay down your student loan debt ASAP

It will take 5-10 years (at least) to pay them off, so keep the initial principal down.

If you have the willpower to keep that cash around (hard at age 20), a cushion would be good if your job isn't stable.

Pay cash for you

Pay cash for you schooling!!!!

don't get loans. Ever.

"Timid men prefer the calm of despotism to the tempestuous sea of liberty." - Thomas Jefferson
"Annoyance is step one of thinking"
"We're all in the same boat, it doesn't matter if you like me"

Better idea... educate

Better idea... educate yourself.

On average.. yes, AVERAGE... you will earn more WITHOUT a degree. This recently flipped. The education system is totally hosed, eh. Don't fall in.

I know you have had to work

I know you have had to work and save for a long time for that 10,000 but in reality that is not a lot of money. I say hang on to it for a cushion. If you become unemployed it could feed you for a while. Of course pay close attention to what is happening with the fed, inflation and world events. If you become convinced that the hyperinflation has started then spend it all on guns, ammo, and non perishable food.

buy the following

#1 - payoff any debt
#2 - watch gold/silver and buy some when it hits a low point within a 3-6 month period. DONT buy it high.


out of 4 quality levels of firearms
1- cheap price and quality
2 - ok price and better quality
3 - very good quality and ok price
4 - top quality but high price

be patient and buy 2 or 3 guns.

shotgun at #2 or 3 quality
30-06 in #3 or #4 quality
22 or near caliber(.223, .270) in #3 quality - possibly a Colt AR15
handgun - Ruger 22 pistol or Colt revolver or 1911 semiauto

firearms in #3 and #4 quality hardly ever lose value as long as you find a decent deal
also, spend the time/money on equipment and learning how to reload rounds.

Jackson County Georgia

War is an instrument entirely inefficient toward redressing wrong; and multiplies, instead of indemnifying losses.
Thomas Jefferson

I'll play

I think that is actually a decent amount of money. So, nice job there. I would do one of two things.

1) see if you can borrow less or not at all so that you don't have loans when you graduate from college. That should at least get you through 1 year w/o having to take a loan.

2) open a brokerage account with a good reputable company as they will have minimums to open and to buy funds etc. I like Fidelity, but your call. Then I would follow Harry Browne's permanent portfolio advice as written in his book Fail-Safe Investing. If you have not read the book I suggest it will be helpful for you. Email me and I will send you a copy. PRPFX is the mutual fund that follows Harry's permanent portfolio. You'll need at least $2,500 to get started and then see if you can save$50 a week for the next 4 years. You'll have $25k before you get out of college. Trust me this will come in handy when you're 24 years old. If you dont need it then keep saving and you'll soon have $100k.

Good luck and nice job saving that nice chunk of change.

Jefferson's picture

I'm not

an investment manager, but have learned a great deal from frequenting the DP.
I would say that there is a convergence of forces on the horizon that could impact our lives in a number of ways.
Dollar collapse.
Martial law.

The way I proceeded was to make sure that I had a place to go if TSHTF, with the means for fuel and other survival needs.
I also made sure that I had the ability to grow, catch, and hunt food if needed, and also had a cache of storable food to feed family and friends in the event of a crisis.
I then invested in some precious metals and other items for barter.
Finally, I made sure that I had the means to defend my family, property, and life.

How you invest is dependent on how you see future events unfolding. My perspective is obviously not optimistic.

BTW, I know that didn't answer your question of how to make money off of your savings, but peace of mind is worth something in itself.

Step One: Don't get into

Step One: Don't get into debt. You will be a slave to it for the next 5 years.
Step Two: If you did get into debt already, put the $10K into paying off debt.

That doesn't make any sense.

You have ten grand and instead of spending that, you are borrowing money.

I think you need to take econ. 101 next semester.

Carry on.

Since your biggest enemy is devaluation...

I would say put it all on BLACK on the nearest Roulette wheel.


Actually, I am impressed you saved so wisely so far. Considering the possible scary times ahead in the near future, I would say invest in a diversity of commodities, and possibly some dual purpose investments like tools. That way if it really hits the fan, you could sell the tools, or use them in a trade to provide income.

I think Europacific capital

I think Europacific capital will work with 10k. As far as paying for school; be sure you've exhausted every possible resource for scholarships and the like. You'd be suprised what is out there.

Euro Pacific Capital has a higher minimum

I think the minimum for Euro Pac is $50K. Euro Pacific Bank is just $500 , but it's only for non-US citizens.

Euro Pacific has several mututal funds

That you can get into for 2500 or more.

Making money short term?

You're relying on pure luck.

What is your appetite for risk?

Short-term stock trading.
Casino gambling.
Buying something and reselling it.

It's all the same. Pick your poison.

5k or 10k is not much money. You should just save it as a cushion, or use some to pay your college tuition bills so you don't run up debt like most do. Don't anticipate getting a job quickly and easily. THis is not a job-seeker's market.

“If ever a time should come, when vain and aspiring men shall possess the highest seats in Government, our country will stand in need of its experienced patriots to prevent its ruin.”

reedr3v's picture

Invest in yourself, be it further education,

increasing life/survival skills and tools/gear, whatever will make you personally stronger, wiser, more capable. No one knows right now, the government has blocked most sane investing for us little guys. Consider also any commodities that will be useful in the future including barter in silver junk dimes if you have secure personal storage.