Who to talk to about investing $? Or where would you put this amount of $?

My good friend got a settlement when she was underage and is now over 18 and needs to put it in a different kind of account. It's over 50K and she oesn't know what to do with it. She's in college now and doesn't think she'll need/want to use it for at least a few years but worries about needing it in case of an emergency.

What should she do with it? I guess being older she thought I'd know. But I have no idea

Re: Who to talk to about investing $? Or where would you put this amount of $?

$5K - put into an IRA right away. I would say Roth, since she probably doesn't make much to make the deduction worth it.

If she wants it for an emergency, a money market or CD are probably the best places, but with interest rates so low, she won't make much.

That amount is definitely worth talking to a FA/broker. Being that the market tanked - it would be a great time to invest, BUT if she wants it in a few years, she might want to look into bonds.

Re: Who to talk to about investing $? Or where would you put this amount of $?

She should probably talk to a financial advisor, or even someone at the bank where the money has been held all this time, just to see what their rates are and what they recommend.

I just think she should be careful what kind of account or accounts she puts the money into. Even though she doesn't think she'll need to dip into it now, you never know what'll happen in the future and she should have at least some of the money readily available to her without any penalty, should she need it.

Re: Who to talk to about investing $? Or where would you put this amount of $?

DH got money when he was underage from his father's pension when his father passed away. I would suggest speaking to a financial advisor.

Re: Who to talk to about investing $? Or where would you put this amount of $?

With current market conditions, I'd stick it in a mattress or under the floorboards!

Seriously tho, $50k is a lot of money for an 18yo. She should definitely speak to a financial advisor. That $ could become a nice little cushion for her in the future.

Re: Who to talk to about investing $? Or where would you put this amount of $?

I would invest in stocks that pay a dividend

Re: Who to talk to about investing $? Or where would you put this amount of $?

I would beware of stocks or other investments - if it is likely she will want to use the money in the next 5 years.

She should absolutely put 5K into a Roth.
The remaining 45K, I would probably do something conservative like CD/Money Market.

She may wish to buy a small apartment or go to grad school or something else. This is a safe way to "hold" the money until she determines what her long term plan would be.

Re: Who to talk to about investing $? Or where would you put this amount of $?

Thanks! I initially said she should speak to a financial advisor and then she said, ok where do I find a good one? Haha, I have no idea.

Any tips on a good financial advisor? How much of a fee do they charge?

Also, why only $5k in a Roth?