Neteller Paid Me --- Help
 

Just received about 110k from Neteller and I"m looking to invest. I already have like 50k in American Funds like Europacific, large cap, etc. I'm not sure what to do with the neteller money. If it helps I'm a 21 year old student with no debt/loans or anything.

Thanks for the input

Re: Neteller Paid Me --- Help
 

1 pay your taxes
2 open a vanguard account and do whatever they suggest

Re: Neteller Paid Me --- Help
 

Index funds are best. They are more diversified than individual stocks, and they return more than actively managed funds.

There are two ways to invest in index funds. The first way, is directly with a fund company, such as Vanguard. This is what spider mentioned and this would be a great way to go. The second way is to buy ETFs, exchange-traded funds. They are purchased just like individual stocks, but they are essentially index funds.

You will also need to figure out which funds to invest in. Before you do that though, you should determine your risk tolerance and then plan an asset allocation. You want a broadly diversified portfolio, with exposure to domestic, foreign, and emerging markets.

What are your current investments? It will be easier to help plan an asset allocation if we know what your new funds will be complementing.

Re: Neteller Paid Me --- Help
 

I have (all American Funds Mutual Funds)
AMCAP - A 12.5%
American High Income Trust - A 4%
Capital Income Builder - 10%
Europacific - 20%
Fundamental Investors - 12.5%
Growth Fund of America - 17.5%
SMALLCAP World Fund - 17.5%

Re: Neteller Paid Me --- Help
 

What would be wrong with just dividing your new $110k between these funds assuming you're happy with your current diversification/positions?

Re: Neteller Paid Me --- Help
 

[ QUOTE ]
What would be wrong with just dividing your new $110k between these funds assuming you're happy with your current diversification/positions?

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Nothing necessarily, I just was curious if anyone had any other options as I'm not very knowledgeable about the finance world...yet

Re: Neteller Paid Me --- Help
 

I don't know anything really about those specific funds but from the looks of it you should probably get some sort of allocation in emerging markets

Re: Neteller Paid Me --- Help
 

Read the sticky and use the search.