What would you do if you had ~40k to invest?

General
1

I’m 20 and have about $35K to $40K that I want to invest. Since I don’t need this money for at least 5-10 years, I’m open to taking risks, but I also want to make smart, informed decisions that will set me up for long-term growth.

Would you go all-in on index funds like VTI or QQQ? Or maybe diversify between ETFs, individual stocks, and even a small allocation to crypto? I’m interested in hearing how others would approach this, especially if you’ve been in a similar position. Any advice or recommendations for a young investor looking to grow wealth over time?

2

Start with index funds like VOO or VTI. They’re simple, diversified, and great for long-term growth. Time in the market beats timing the market.

3

Go for an 80/20 split between VTI and VXUS for US and international exposure. Also, check out books like The Little Book of Common Sense Investing by John Bogle.

4

QQQ and VOO are solid picks for ETFs. If you want more risk, allocate a small portion to individual growth stocks or even Bitcoin.

5

VT is a great ‘set it and forget it’ option. It gives you exposure to the entire global market, which is perfect for someone with a long-term horizon.

6

First, make sure you have an emergency fund. Then, max out a Roth IRA with $7k for 2024 and invest it in VOO. Put the rest in a taxable brokerage and keep adding to it.

7

Invest in ETFs like VTI or SPY and let compound interest do its thing. Avoid options and speculative investments until you’ve built a solid base.

8

At your age, consider spending a portion on personal growth or travel—it’s an investment in yourself. Put the rest in VOO or QQQ for steady returns.

9

Stick to ETFs like VTI or VOO. Don’t get distracted by hype around individual stocks or crypto unless you’re prepared to lose that portion.

10

Thanks for the suggestions so far! Looks like ETFs are a popular option. Any thoughts on allocating a small percentage to crypto or tech-heavy ETFs like QQQ?

11

QQQ and VOO is all you need. They give you solid exposure to tech and the broader market.

12

Remember, if your employer offers a 401k match, max it out first. It’s free money.

13

VOO is a safe bet for the long term. Make sure you reinvest dividends for maximum growth.

14

Since you don’t need the money soon, consider putting some in Bitcoin for a higher risk, high-reward option. Stick with ETFs like VTI for the rest.

15

If you’re worried about market timing, split your investment into smaller chunks and invest over time using dollar-cost averaging.