School fees vs. investing.Q I recently moved to the U.S. from the Caribbean I have $5,000 and I'm trying to obtain a second degree. I know this money can't pay for my school fees, but it could pay a part. Or I could get a regular job and invest the $5,000. Please advise. D. Dickodeen Via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the A My advice to you would be to get a job and search for financial aid and scholarships to pay for school. Even if you have to take out loans for school, it will be worth the investment in the future. As you've pointed out, the $5,000 you have will not pay for the total cost of your education--in fact, it will barely pay for the cost of one semester se·mes·ter n. One of two divisions of 15 to 18 weeks each of an academic year. [German, from Latin (cursus) s of advanced degree classes at most colleges and universities. If you get a job now, you can take that $5,000 and begin building toward a future goal--the down payment on a home, for instance. I would advise using $3,000 of your money to open up a Roth IRA Roth IRA An individual retirement plan that bears many similarities to the Traditional IRA. Contributions are never deductible, and qualified distributions are tax-free. A qualified distribution is one that is taken at least five years after the taxpayer established his/her first (the limit for contributions in 2005 is $4,000). This will allow you to begin saving for your retirement and also give you the flexibility to use the money as a down payment for a home in five years without incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. the 10% early withdrawal penalty. Your remaining $2,000 could be placed in a money market account, a high-interest savings account Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: , or a six-month CD. While you'll only earn between 2% and 2.5% interest, you'll have some money available to you in case of an emergency. Mail your money management Questions to Money Matters, BLACK ENTERPRISE 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to scottm@blackenterprise.com. |
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