Your sum­mer job can fund a FANG for­tune

USA TODAY US Edition - - MONEY - Adam Shell

That $10-per-hour sum­mer job sling­ing eggs or sav­ing lives at the beach could add up to more than pocket change. In fact, it could trans­late into a nest egg of tens of thou­sands of dol­lars if you sock some of the cash away in the stock mar­ket.

While the pay isn’t great for teens and col­lege-age work­ers look­ing to make a few ex­tra bucks — 87% of em­ploy­ers hir­ing this sum­mer, Ca­reer-Builder says, plan to pay $10 or more an hour — it’s enough seed money to build a small for­tune in a short pe­riod of time, an anal­y­sis by Ru­bi­coin, an ed­u­ca­tional in­vest­ment app, found.

Ru­bi­coin cal­cu­lated how much money a worker earn­ing $10 an hour in a 25hour work­week for 13 weeks each sum­mer the past four years would have if they in­vested half of their be­fore-tax pay equally on Aug. 31 each year in four FANG stocks — Face­book, Ama­zon, Net­flix and (Al­pha­bet par­ent) Google. Half of the an­nual sum­mer pay adds up to

$1,625 per sum­mer. That $6,500 in­vest­ment since 2014 would be worth $15,899 to­day, ac­cord­ing to Ru­bi­coin, cit­ing clos­ing prices on May 28. And for sum­mer work­ers who fa­vor big bets, that ini­tial in­vest­ment would have grown to

$22,639 if they fun­neled all the cash into just Net­flix stock, or $19,554 if they bet it all on on­line re­tail gi­ant Ama­zon.

“The num­bers are pretty im­pres­sive, with peo­ple po­ten­tially qua­dru­pling half their salaries,” says Em­met Sav­age, chief in­vestor & co-founder at Ru­bi­coin. So, next time you sneer at that low-pay­ing sum­mer job, think about what you could do with $20,000 in four years. Maybe buy a car or book a trip to Tahiti.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.