How do I make the most of my investment?

[greenmachine]

Hello All,

I am a university student, 3rd year engineering. Currently I am on a workterm bringing in ~$3600 a month. I know that most people my age don’t make the money I do and I want to be smart with it.

I plan to invest/save money to buildup a lump-sum I can use to purchase a large asset (large for me at least) a year or two after I graduate (4/5 years). Most likely Real Estate, but not 100% sure, will worry about it when the time comes.

So here’s my layout for the next 36months:

12months of work @3600/month
4 months of school (-$6000)
8months of work @3600/month
8 months of school (-$14000)

In total, I could bring in $72,000 net income over the next 2 workterms. With ~$20,000 going to school that leaves me with $52,000. Now naturally, I won’t be investing every penny I earn. I clear about 1800 per 2 weeks. I take my savings right off the top with an auto withdrawl (paying myself first) of about $750 per 2weeks. For $1500 per month.

This gives me a total of $30,000 over the course of 20 months to invest. I currently have a TFSA setup where I deposit my money. I am also looking at aquiring a few small assets to bring I cash to add to my investment funds.

My question is, what is the best way for me to invest this money to get the best return over the next 3,4,5 years?

[jIM_Ohio]

My question is, what is the best way for me to invest this money to get the best return over the next 3,4,5 years?

That simple question is best answered by putting the money in a high yield savings account. This is because you have no savings now, and because your timeframe for the money is less than 10 years.

The next best solution might me treasury bonds or TIPS, but I would not look into those until you had at least 3 months expenses in a savings account.

[ramirezhenry55]

^totally agree with him

I would also add since you are young and assume that you have a higher risk appetite to try on invest some to stocks. You don't need to trade, just the simple buy and hold for a specific period of time. We are all in the slump and stocks are slowly picking up hence; the best time to buy. But first, do your research as well and read as much as you can about stocks and mutual funds.

[richrf]

At your age, I would concentrate on building savings doing what you do best - whatever that might be. You will probably make much more money focusing on your career as opposed to be distracted by some small diluted investment opportunities.

As you build your savings, build up knowledge in a specific asset class (become an expert) and look for great opportunities when the asset is out of favor. When no one else is buying that is when you get the best price. Good luck with your career!

Rich