Where to Invest $10,000 If Your Student Loans Will Be Forgiven
If you're one of the millions eligible to receive at least $10,000 in student loan forgiveness, it's never too early to begin thinking about what you could do with the money you'll save -- such as invest (surprise, surprise). Instead of just viewing it as debt wiped away, you should view it as money you can now use to make more money.
The amount you have forgiven won't just appear in your bank account, but you can put a plan in place to use the money you would've otherwise been paying on the loans. And you don't have to try for a home-run investment. Instead, I would focus on four types of index funds that could be the foundation of a solid, well-diversified portfolio.
Of the major benchmarks in the stock market, the S&P 500 is by far the most followed. Tracking the largest 500 U.S. companies by market cap, the S&P 500 can be a one-stop shop for many investors. An S&P 500 index fund has three things that almost any investor would want: blue chip stocks, dividends, and long-term stability.
Source Fool.com
