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Suppose 1: I am a 25 year old just about to finishing my PhD in pure mathematics, and have saved about $100 K USD so far in my life. I have saved all $100 K USD in an American Bank (actually Bank of America).

• Actually all $100 K USD can be used for investment, because I have additional saving (like extra $50K USD for backup).

Suppose 2: You are senior and more intelligent in finance and investment issue.
You wanted to give me some serious advices.

What would you recommend me to do with this $100 K USD in the upcoming years? Say the next 10 or 20 years, and I am staying in USA.

i.e., Best secnario for a 25 yo finshing a PhD, focus a career in Academia but invest her $100 K USD at hand

Suppose 3: I would still focus most of my time doing research as I am applying my postdoc in pure mathematics. But I like to make the best enhancement for this $100 K USD. Are there some good ways to invest this money, while put my minimal attention on this investment, however I can still gain the most of profits/increase-ment out of it? (Much better than putting in a Bank.)

Note: I am currently living in US in the east coast near NYC, but I am not a US citizen (yet). I would be having about a $70K USD salary per year for upcoming years.

Thank you for the precious advices!

Edit: My question is different from Best way to start investing, for a young person just starting their career?, because I am working in Academia, so I wish to focus on my academic research/teaching, and have least distractions while stably investing. Also my starting background is different from the other post.

A proper answer to this would require knowing about your short and long term financial goals. Will you need this money to spend on something such as a house in the next 5-10 years? Do you plan to maximize your 403(b) contributions from your new salary or would your basic expenses be too high to manage that? Not knowing those, the best advice you can get is some options.

1. A diversified low cost brokerage, ETF, or mutual fund account. You can target any mix from 100% low risk bonds and cash to 100% equities. The mix would depend on your desired return and tolerance for the risk you would assume by trying to target greater return, as well as the time horizon for when you would expect to need to spend some of the money. If you need some in a few years to buy a house or for a wedding that would dictate a very different investment mix than if you were quite sure that all of the money would be untouched for 10 years or more. You could target a return anywhere from 3% to 10% per year or more depending on the risk you could accept and your time horizon.




2. Use the 100k as a sinking fund to cover your expenses as you maximize your contributions to your 403(b) plan at $19,000 as well as a Roth IRA contribution of $6,000 and increase as the limits rise. These plans are tax advantaged and maximizing them and making both Roth and regular pre-tax contributions will give you good tax advantages now and in the future as well.




3. A combination of the two. Attempt to maximize your contributions and attempt not to spend anything from the sinking fund. If you are successful in not spending the sinking fund you will be well set up to reach your future financial goals.




4. Use some of the 100k to purchase investment real estate. This is typically not a good option unless you put in the time to understand the risks and particulars of a given property.

The question doesn't ask for long-term growth set against fluctuation and volatility but asks for something better than a bank.

Well, there are several internet banks that the current bank account can link-to that pay almost as much as a three-month Treasury Bill.

Also, there are Treasury Direct accounts that link to the current bank account with non-hedge-fund buy-and-hold investors probably going as long as two-year durations.

And there are long-term Treasury Bond ETF's near 3% dividend that can be held while also holding a sell-side Treasury Bond future. The investor is the hedge fund.

There is a leveraged and hedged Treasury open-end mutual fund that was previously a closed-end fund that is paying about 6% dividend. And there is a closed-end leveraged and hedged TIP fund paying about 4% dividend. These choices are volatile but very entertaining.

Then another step up is leveraged and hedged mortgage-REIT's that pay about 10% dividends.

But certainly suggest that one or two stocks with particularly good prospects be held at 20% or so total percentage of the portfolio. Or else hold a stock index at 20% of the portfolio.