Stocks Or House? 24-Year-Old With $15K Struggles With Risky Choices – 'I Have No Idea When I'd Be Ready To Buy A House' But Wants To Win Big

For many young adults, financial independence usually begins with a simple goal: save money. But what happens when you’ve saved a decent amount and are faced with the challenging task of deciding where to invest it?

This is a common struggle, especially for those who want to grow their money but don’t want to risk it. The fear of making the wrong choice is paralyzing for many, and that’s why some ask for advice from other investors on Reddit or other outlets.

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This is precisely the situation of a 24-year-old Reddit user who found himself at a crossroads. With $15,000 saved up and dreams of buying a house someday, he initially planned to use the sum for a property down payment, ideally paid by 2028. Yet, the poster admits that this timeline is more of a guess than a solid plan and is wondering which stocks he could buy instead.

“I was planning on doing just a 50/50 split between [Altria Group Inc. MO] and [JPMorgan Equity Premium Income ETF JEPI]. I was also thinking about maybe only putting $10,000 toward those two stocks and the other $5,000 into Bitcoin. Any advice?” he asked.

The r/Dividends community on Reddit jumped to advise the young investor, providing insights and suggestions and pointing out other aspects he hasn’t considered.

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Use $15,000 For a Down Payment or Buy Stocks and/or Bitcoin? Reddit Investors Weigh In

Dividend-Paying ETFs Offer a Balance of Income and Growth

Several commenters suggested dividend-focused ETFs as a way to generate income while maintaining exposure to the stock market.

“Chuck it in [Schwab U.S. Dividend Equity ETF SCHD]; it’s safer than a solo stock. Also, JEPI is designed for monthly payments, not growth,” a Redditor suggested.

One user recommended the poster split the money into two different ETF allocations.

“50/50 [JPMorgan Nasdaq Equity Premium Income ETF JEPQ] and SCHD,” he said.

“Personally, I think [Guggenheim Solar ETF GOOP] might be a good play. I think [Alphabet Inc. GOOGL GOOG)] is undervalued and GOOP gives you exposure to Google while paying monthly covered call dividends. I would also check out [Global X S&P 500 Tail Risk ETF XDTE] and [Global X Nasdaq 100 Tail Risk ETF QDTE] for index covered call plays,” a commenter suggests.

A Redditor advised the investor to put the money in either JEPI or SCHD if he’s willing to risk a portion of the principle and avoid investing in individual stocks altogether.

“Maybe JEPI or SCHD if you were pushing it and accepting some principle risk. Definitely not an individual stock under any condition in my playbook,” he said.

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Diversified ETFs Provide Exposure to Broader Markets

Another group of commenters suggested diversified ETFs as a way to gain exposure to the broad market while minimizing risk.

“I think people here are being far too cautious. [High-yield savings account] for 3 years? If it was me, I’d go 50% JEPQ 30% [Vanguard S&P 500 ETF VOO], and 20% [high-yield savings account]/money market/[iShares 0-3 Month Treasury Bond ETF SGOV],” a user wrote.

A commenter mentioned two ETFs that provide a mix of stocks and bonds for a balance in risk and returns.

“If you're really set on putting your money in the stock market, I'd go with something like [iShares Core Growth Allocation ETF AOR] (60% equity, 40% bonds) or even [iShares Core Moderate Allocation ETF AOM] (40% equity, 60% bonds). These are specifically the iShares ETFs but there are multiple companies that do these types of ETFs. They both have exposure from over 3,000 companies, mostly U.S., but with a good amount of global exposure as well so if the U.S. market tanks you're still doing ok,” his comment reads.

“If it’s not retirement, then: JEPQ, SCHD, SGOV. If it’s retirement: JEPI, [NEOS S&P 500 High Income ETF SPYI], [high-yield savings account]. It is what I would do, but I firmly advise you to research all those and more before making any decision,” a Redditor suggested.

A commenter touched on the poster's mention of Bitcoin, and suggested he avoids the crypto market altogether.

"Wouldn't touch Bitcoin or any crypto, for that matter, with a 40-ft barge pole! Just a personal stance, though!" 

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