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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Virchu on October 24, 2016, 06:06:34 PM

Title: Investing options for graduate student with low earned income
Post by: Virchu on October 24, 2016, 06:06:34 PM

I am a graduate student with ~3k earned income this year. Already put a little into a Roth this year (1.3k).
Aside from savings, are there other options for me to invest some money this year?

Thanks!

Title: Re: Investing options for graduate student with low earned income
Post by: cincystache on October 24, 2016, 08:03:55 PM

Roth IRA is probably the best strategy at that income level. Keep doing what you're doing.

Title: Re: Investing options for graduate student with low earned income
Post by: Virchu on October 25, 2016, 04:25:14 AM

Thanks. Are there income requirements for mutual funds/ bonds?

Title: Re: Investing options for graduate student with low earned income
Post by: cincystache on November 17, 2016, 08:48:32 AM

no income requirements that I am aware of, particularly for index funds at Vanguard, Schwab, Fidelity. Those places usually just have a minimum required starting investment ranging from 100-$3000 depending on which fund and broker you choose.

Good luck!

Title: Re: Investing options for graduate student with low earned income
Post by: intirb on November 18, 2016, 11:20:13 AM

I was in this situation (now I'm on an RA, so I get more earned income).  I put all my earned income into a ROTH, and then the rest of savings into taxable accounts (some of it into a CD ladder because I'm saving a down payment).  There are no income requirements for taxable investment accounts, but there are often minimums.

Title: Re: Investing options for graduate student with low earned income
Post by: clarkfan1979 on November 19, 2016, 05:15:51 PM

I was a substitute teacher and worked construction for 2 years before starting grad school. When I started grad school, I bought a 4 bed/2 bath house near campus. I had 3 roommates that covered the entire mortgage and I lived there for free.

There is a bonus room that could also function as a bedroom. If I found MMM years ago, I would have had 4 roommates. However, I don't think the MMM website existed back then.

Title: Re: Investing options for graduate student with low earned income
Post by: Metric Mouse on November 20, 2016, 04:45:40 AM

Quote from: cincystache on November 17, 2016, 08:48:32 AM

no income requirements that I am aware of, particularly for index funds at Vanguard, Schwab, Fidelity. Those places usually just have a minimum required starting investment ranging from 100-$3000 depending on which fund and broker you choose.

Good luck!

Good luck OP! Sounds like you're killing it with a 50% savings rate!

Sadly Vanguard Admiral shares are even harder to break into in some cases, but you're totally on the right track.