19-Year-Old Server-Turned-Reseller With $70K In Savings Asks For Stock Investing Advice On Reddit

December 21, 2024

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Many young adults are beginning to explore the world of investing and seeking advice online on various forums. A 19-year-old college student has also turned to Reddit for direction on building financial security.

The 19-year-old business major has amassed $70K in a checking account by working as a server during the summer and managing a reselling business during the year.

With so many options available, the server-turned-reseller mentioned he feels stuck as his parents cannot advise him since they aren’t familiar with stock investments.

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“I just turned 19 years old and have very little financial knowledge. I’ve had a credit card for a year now, stayed up-to-date with the payments and have a credit score in the 700s. I’m a business major and a sophomore in college. My parents sadly don’t invest and don’t have much advice to give,” he said.

While he has researched, the many options available confuse him.

“I feel completely stuck in taking the first step in investing and would love some insight and advice,” the 19-year-old said.

Several Redditors have jumped into the comment section of the r/FinancialPlanning community thread, where the confused young man sought guidance and advised him on what they considered the best.

Let’s see what the Redditors have recommended to the young investor.

Redditors’ Top 3 Suggestions For First-Time Investing

VOO’s S&P 500

Several Redditors have advised the 19-year-old college student that investing in VOO’s S&P 500 is the best long-term strategy.

“At the end of the day, the best long-term strategy is a low-cost S&P 500 index fund,” a comment reads.

Another Redditor was on the same page, recommending the poster read up on Vanguard’s VOO because it is the lowest-cost S&P 500.

“I want you to read up on Vanguard’s VOO, which is the lowest-cost S&P 500 Exchange Traded Fund. Learn the difference between an ETF and a mutual fund and why an ETF is better (lower fees and no capital gains distributions),” the Redditor said.

Another member of the r/FinancialPlanning community mentioned that he keeps all his money in VOO.

“I have the majority of my money in VOO,” he wrote.

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QQQ’s ETFs

QQQ’s ETFs were mentioned quite a bit in the comment section of the r/FinancialPlanning community thread and one Redditor, in particular, says the young investor should put his money in QQQ since he has time to ride out market volatility.

“Just go QQQ, SPYG or some type of high-growth/high-risk fund. You have time on your side,” the Redditor said.

A second community member advised the college student to split his funds between VOO’s S&P 500 and QQQ as part of a more expansive investment plan.

“If you are starting with $14,000, keep it simple, buy VOO at regular intervals, not all at once. Start with $2,000, then $1,000 per week until you hit $8,000. Then split $1,000 into Invesco’s QQQ Nasdaq 100 ETF and $1,000 into VOO each week until the full $14,000 is invested. Then sit tight and let it ride,” the Redditor wrote.

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Max Out Roth IRA

Most members who commented on the 19-year-old’s post agreed that maxing out the Roth IRA is a very good move and several suggested he do the same in the following year.

“Roth IRA with $7,000 max contribution for 2024 now and another $7,000 for 2025 in January,” a comment reads.

A second Redditor advised the young investor to max out their Roth IRA every year, while another said there’s a reason everyone recommends it.

“There’s a reason the advice to max out the Roth IRA is the most popular answer you see. It’s really good advice. Max out your contribution for 2024 now, then do it again in January. Rinse and repeat. Put it in something like a reputable growth fund and leave it alone,” he said.

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This article 19-Year-Old Server-Turned-Reseller With $70K In Savings Asks For Stock Investing Advice On Reddit – ‘I Feel Stuck’ originally appeared on Benzinga.com

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