What is the best investment for a recent college graduate?

Do you have a job lined up for after graduation?

Start with short term certificates of deposit to build up cash reserves. You need to pay off your non-subsidized student loans as quickly as you can. Next, you need to begin accumulating the equivalent of 6 months living expenses in cash savings. (This is where the CDs come in) By living expenses, I mean rent, car payment, food, and student loan payments.

I am graduating also and don’t know crap about investments, i’ll be watching this thread in hopes of learning, but I wanted to say “welcome to the Collective”. :)

I do have a job lined up post graduation. I agree that I need to pay off my unsubsidized loans asap.

CDs are definitely an option. What bank do you suggest?

Are there any higher yielding options for me?

The other thing to start doing is to start reading Motley Fool, It’s a great way to learn about investing. If your company has a 401K plan, you need to put money into that through payroll deduction as soon as you are able. But don’t strap yourself by socking away money to the point where you’re in financial difficulties meeting your expenses.

One biggest cash drain is looking at that paycheck, and thinking “Wow! Lot of money.” Which, by college standards, it may be, but by adult world standards, it’s probably just okay. Resist the temptation to eat out every day and go out after work. It’s easy to spend $100 week on eating out. That’s $400 tossed away. Don’t buy a new car, which is another common mistake.

If your company doesn’t have a 401K, try to take advantage of an IRA account at a bank. Shop the rates at various banks, and find one in your area that has competitive rates. You want to establish a relationship with a bank. We’re on our way back to common sense banking practices. Depending on where you are located, a regional bank may offer you the best rates and security.

Right now, many mutual funds are paying -22%. So yes, CDs are your best option until you have a cash cushion built up.

One thing that you might be able to do that’s fun is join an investment club. Usually they require a $100 -$500 cash commitment up front, and then a monthly contribution of $50 – $100. The problem with this is that you cannot get your money out quickly if you need it.

Get one credit card and keep the balance paid off. Save it for emergencies, like car repairs, furniture, etc. Spending money you don’t have is never smart in the long run.

Every time you spend a dollar, you sacrifice a bit of your future.

another good general information mag about investing, money, planning is Kiplinger’s Personal Finance. the monthly mag has articles on all sorts of money stuff, investing, banking, insurance, consumerism, loans, etc. they do have a bent toward mutual funds and index funds, but the articles are written in everyday language from which you can learn about the money world. they also have a great set of web pages with all sorts of more indepth stuff. lastly, as my dad, a very successful small family businessman told me, if you don’t understand an idea or product someone is trying to pitch to you, just say no. If they can not explain it in terms you understand, then wait until you do understand or avoid it. Good luck, Live well this life!!!!!!!!!

If your company is offering matching funds for a 401K you should take advantage of that. The matching funds alone makes it worthwhile. A lot of people have seen their 401K’s drop way down, but it is still a very good long term investment.

Second choice would be funding an IRA every year. This is another two way saver, saving on taxes plus getting interest. Do your research in the various site mentioned in other answers, and choose the one best for you.

Don’t be looking for a very large rate of return this year, but instead choose for future strength.

While not about investing, this is a helpful site on how to pay for purchases. and what you should know about various methods of payment.

Bank of america stock. Fa sho. I’ve made about 6500.00 in the last week and i’m 19 and still in college. Think about it. The gov wont let it fail. 6 months ago it was 38.00 ish. i mean its dropped, but all of them have. It’ll go back up in a hurry.

@Kiev749 How much did you start with? and when?

i bought it in March of 2008 with my tax return… and my bonus check from work. best decision ever.

@Kiev749 How much in total amount did you invest in?