Lotto win

[m0neywise]

Hi,
I am 21 years old, still at university with a 20 grand interest free loan. I am living at home and don't have to pay rent or board. My expenses are covered by my part time wages.
I have recently come into around 95,000USD and I am wondering how I should invest this money.

Thank you

[disneysteve]

What are the terms of the loan? Who is the lender? When is payment due? Do you have any savings? Will you be needing any additional money to complete your education?

[lorraineb]

Pay off the college loan (or put aside the amount that will be needed when it must be repaid or interest will be charged), keep some for an emergency fund and put the rest into a retirement account. Continue to live like you never received the money.

[mrpaseo]

Hi,
I am 21 years old, still at university with a 20 grand interest free loan. I am living at home and don't have to pay rent or board. My expenses are covered by my part time wages.
I have recently come into around 95,000USD and I am wondering how I should invest this money.

Thank you

I would think, do something nice for your parents that are allowing you to live rent free while you attend college.

DisneySteve has some good questions, let's get them answered then we'll go from there.

[m0neywise]

What are the terms of the loan? Who is the lender? When is payment due? Do you have any savings? Will you be needing any additional money to complete your education?

Terms of the loan: start making repayments as soon as yearly income reaches over 19000. Lender: government. Payment due date: none, from when I start earning more than 19000/year till full amount is paid off. Savings: none, except a retirement savings scheme "kiwisaver", not too sure how much I have in there. can't be over $5000. Will I need money to complete my education: No, I am working two jobs and will not this money for my education.
thank you

[snafu]

If you have a lottery win of $ 95,000. I would DCA [dollar cost averaging] $ 5,000. monthly into a low cost, low fee Dividend Mutual Fund and International Dividend Fund [MF] with the DRIP feature so that dividends are re-invested into units.

What interest rate on SL? Is interest accumulating each and every month? Depending on interest rate, you could pay interest monthly from earnings or MF capital gain. I suggest you pay market rate Room and Board to parents to demonstrate your maturity.