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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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On second thought


The advice here is all so convoluted. Find a good Financial Advisor to help you and give you advice. If you need help finding a good one in your area, I used this site to find mine:


Ron Paul - Intellectual hero

And then you recommend Dave Ramsey. Yuk.


Dave Ramsey, Suze Orman and Clark Howrd all ignore inflation in all of their advice.

They have to, because inflation eliminates or at least minimizes the benefits of the stock market, bonds, home appreciation, or anything else measured in dollars.

They wouldn't have anything to do their shows about.

"Timid men prefer the calm of despotism to the tempestuous sea of liberty" TJ

Pay off Loans vs Investing money

The IR on your loans is probably very low, so pay those off over time.

You can make a better return with market investments or even putting a down payment on a very undervalued home.

If you can't make a better rate of return on your investment than your loan interest rate, then pay off the loan.

Your advice

Doesn't take into consideration Risk. Most student loans are Non bankrupt-able . Also, why would you want to have any debt even at around 3%? Any amount of debt is money lost over time. Not only that but the paid out interest eats into any investment money you make.

Better plan: Pay off ALL debt as soon as possible, then jump into investing head first with the extra money you have from NOT making bank payments.

Ron Paul - Intellectual hero

Income is your greatest

Income is your greatest wealth building asset, but having debt essentially reduces your disposable income.

Debt requires monthly payments - and most of that goes to interest not principal at the beginning. When you take out a loan, the banks make compound interest off of you. They charge interest on the remaining balance annually at whatever your rate is - which takes a long time to whittle down when your payments barely exceed the interest they're earning from you. When you're debt free, you can control 100% of your income.

...well, after the government takes what they want from it through stupid the income tax.

So short term... if you get out of debt you don't have to make payments... your income is yours to keep/spend/invest how you will.

"For this is the will of God, that by doing good you should put to silence the ignorance of foolish people. Live as people who are free, not using your freedom as a cover-up for evil, but living as servants of God."
(1 Peter 2:15-16)

Wrong, wrong, etc.

If he has a loan at 3% and true inflation is 5%, the banks are paying him 2%. Other than fears of not being able to pay it off for job interruptions, why on earth would you pay it off?

28 years ago I got government grants and took out a student loan for $2500, cancelled my classes and started an auto repair shop in a two and a half car garage. I've been self employed ever since and I have real job security. I'm definately the last person I fire.

Start a small business. You'll hate me, hate me, hate me, thank me.

"Timid men prefer the calm of despotism to the tempestuous sea of liberty" TJ

spoken like a true Keynesian

Citizendave, should learn some Austrian economics.

My first thought was..

..fuck you idiot. But, I am older and wiser now and realize that you don't know what you're talking about, and your unwarranted insult is a result of you having diaper rash.

Having said that, you should know that I have been a proponent of Austrian and Chicago school of Economics for over 30 years and my comments have NOTHING to do with Keynes. Oh, yeah. Fuck you idiot.

"Timid men prefer the calm of despotism to the tempestuous sea of liberty" TJ



A nation of sheep breeds a government of wolves.

Become a producer of some kind.

Personally I'm buying stuff like www.omegagarden.com , and producing ( a ton) vegetables every 6 weeks... If one looks at the demograghics, 2% of United States are farmers, and 90% are over 50, and under any circumstances people will still eat in the future. We import food here, which will change dramatically from dollar implosion, people can only turn to local producers...


Buy gold with it. It won't make you any money, but it will protect you from inflation.
What cost $10,000 in 2000 would cost $12,533.03 in 2010. And I suspect what cost you $10,000 in 2010, will cost you at least $15,000 in 2020.

Do what Ron Paul did.

All get rich quick stuff is risky. If you want your money doing something, put it into what Ron Paul has done. Honestly, "what would Ron Paul do?" should really be asked more often because he amazingly can be applied to many things.

On the silver and gold, NO! People who tell you to "invest" in that by buying physical quantities are not that smart. It is only a good way to safegaurd your money(if you keep it in a safe), but it sure as hell isnt going to make you tons. Yes, Paul does have stock in gold companies, but he doesnt have the physical gold.

To climb the mountain, you must believe you can.

"he began a private practice in obstetrics and gynecology"

I believe the investment was the gyno clinic he established and the coin store.

What follows is an unsubstantiated internet posting..
"He apparently co-owned a coin dealership, "Ron Paul Coins," for twelve years (1984-1996) with Burt Blumert, who continued to operate it after Paul resumed office. He also apparently spoke multiple times at the American Numismatic Association's 1988 convention."

During a later interview Ron Paul made a reference to "Camino Coin Company." Perhaps "Ron Paul Coins" and "Camino Coin Company" were one and the same from 1984 through 1996? Or where they separate? Did "Ron Paul Coins" actually exist, or was it in name only? It looks like Blumert ran Camino Coin Company from 1959 through 2008 and then gave the dealership to a long-time employee at that time. Blumert apparently passed away in 2009.

"Timid men prefer the calm of despotism to the tempestuous sea of liberty" TJ

Um how do you know Ron Paul

Um how do you know Ron Paul doesn't own any physical gold? Sources?

Ron Paul doesn't own physical? Are you insane?

Are you absolutely off your rocker to claim that Ron Paul doesn't have the physical gold?

If anybody on this forum believes that for an instant, I'd like you to contact me--because I've got some wonderful beach-front property in the middle of Arizona that I'd like to sell you--really cheap!

Give me a break .........

everyone has an opinion

Metals would protect his money and could very well make him some money ...as long as the govt stays out of it...and we all know how good they are at doing that...

fireant's picture

Physical silver most certainly has an investment component.

Drown out today's noise of manipulation, deflation, inflation, and take a long-term view (20-40 years). We can't even dream of advances in tech applications which will be driven by silver's unique properties. I'm willing to bet silver will out-perform most all other commodities in the years ahead.

Undo what Wilson did

So why not

invest in tech company securities via good mutual funds for diversification rather than put all your eggs in one basket (silver)?

If you look at silver over 20-40 years, it has a terrible long term track record.

Ron Paul - Intellectual hero

fireant's picture

Please point to where I discussed asset allocation.

I merely defended it as an investment, and would never recommend all eggs in one basket.

"...it has a terrible long term track record." If you bought in 1990 or so, you wouln't say that. Besides, the world had not yet seen the tech revolution we are just entering into.

"...invest in tech company securities via good mutual funds..." There's nothing wrong with that if you understand the risks, but to suggest it as an alternative to one's physical stash is to ignore the precarious state of the dollar as world reserve currency. Physical silver has much more than an investment component, including an insurance hedge against calamity.

Undo what Wilson did

Silver is an investment! It's

Silver is an investment! It's medicine as well as money! Pretty soon that will be one of the few things we will be using as a system of trade. Paper money will be worthless. The people who will have paper money will be poor, and the ones who own food, oil, land, and precious metals will be rich.

Dude, seriously?

Silver is TOXIC and anybody who thinks it has any medicinal qualities has been sniffing too much glue. I refine gold and silver for a living and Ag is nasty!!

A nation of sheep breeds a government of wolves.


By all means....

ingest some Ag, it's good for you!! NOT


A nation of sheep breeds a government of wolves.

You left out

securities. Stocks are as much a hedge as commodities, most likely better.

Ron Paul - Intellectual hero

reedr3v's picture

You have to have some sophisticated

expertise to invest in stocks. The Stock Market isn't for amateurs, and taking the advice of a hired "expert" is like rolling dice. A diversified approach has merit, but for most young beginners, investing in their own knowledge and skills and personal resources is basic and far, far less risky.

Depends which stocks. Mining

Depends which stocks. Mining stocks, Natural gas, oil, and agricultural stocks would be best, for long term.


The only reason to own any gold/silver commodities if you are truly afraid of a dollar collapse. Invest in securities (stocks) both foreign and domestic through mutual funds. You can even invest a small amount in commodities to increase your diversification. As far as Gov't bonds, if you are on the Daily Paul I would think you would know well enough to stay clear of those. And at your age, you shouldn't invest in much bonds anyway.

Investing in good growth stock mutual funds, both foreign and domestic diversifies your investments across companies and across nations.

Ron Paul - Intellectual hero

Don't Buy Currency

Speculating is a terrible idea. I reiterate my previous post:

Get out of debt as fast as you can, invest in good growth stock mutual funds.

Ron Paul - Intellectual hero

You obviously are not

You obviously are not educated on monetary history...

smartest thing to do with your savings?

I am a financial advisor since 26 years. You have committed a great sin already. Your desire to "make money with your money in the short term".

Start a business and make wise decisions. NEVER speculate.
Provide a valuable service or goods.
MONEY DOES NOT GROW. It is an illusion you are made to believe in.


Gerald Mangold