What to do with a distribution as a young person?
"I have money to invest. Where should I put it? Anyone who answers with ""Give it to me, I'll invest it for you, don't worry."" needs to be avoided. If your financial advisor gives you this line or equivalent, fire him/her and find another. Before you think about where you should put your money, learn about investing. Take courses, read books, consume blogs and videos on investing in stocks, businesses, real estate, and precious metals. Learn what the risks and rewards are for each, and make an informed decision based on what you learned. Find differing opinions on each type of investment and come to your own conclusions for each. I for example, do not understand stocks, and so do not seriously work the stock market.  Mutual funds make money for the folks selling them whether or not the price goes up or down. You assume all the risk while the mutual fund advisor gets the reward. If you find a mutual fund advisor who cannot recommend the purchase of a product he doesn't sell, he's not an advisor, he's a salesman. Investing in business requires you either to intimately understand businesses and how to fund them, or to hire someone who can make an objective evaluation for you. Again this requires training. I have no such training, and avoid investing in businesses. Investing in real estate also requires you to know what to look for in a property that produces cash flow or capital gains. I took a course, read some books, gained experience and have a knowledgeable team at my disposal so my wins are greater than my losses. Do not be fooled by people telling you that higher risk means higher reward. Risks that you understand and have a detailed plan to mitigate are not risks. It is possible to have higher reward without increasing risk. Again, do your own research. The richest people in the world do not own mutual funds or IRAs or RRSPs or TFSAs, they do their own research and invest in the things I mentioned above." I highly recommend passive investing through something like betterment (www.betterment.com) or vanguard's ETFs.  FutureAdvisor.com can provide some good advice as to what funds to invest in. I'd recommend using that money to max out your Roth IRAs each year, too.
"What types of delivery options are these? I worked in logistics for a brief period (like 2 years, not much) and have never heard of such a thing.   I think what the person above you mentioned is that UPS and FedEx both lean heavily on USPS for shipments to rural areas that it simply doesn't make sense for the private companies to build a network to distribute to. Instead they dump your UPS/FedEx onto USPS for the last leg or two of distribution, depending on how rural the area is. Most addresses listed as ""beyond points"" in already rural areas are almost all delivered by USPS and not UPS/FedEx" I understand what they are doing, and certainly don't disagree with your assessment.  HOWEVER, what I'm saying is that people are going to buy Birkenstock's on Amazon with or without the CEO's permission and thus with or without legit Birkenstocks (Read counterfeit).  My point is that they can either capture that distribution channels themselves or someone else will.  When American's buy shoes now, its turning more and more to online distribution.  Ignoring an online distribution channel is the same as ignoring cell phones if you're a pay phone provider.  All I'm saying is he can get on board or get out of the way. To me, the most important thing for young people to learn about personal finance is the connection between service and income.  Most, rightly look for a way to earn money and advance the lifestyle of their home life.  How does one do that?  Grinding it out in a 9-5 does not seem attractive while living the lifestyles of those on TV would be awesome.   The temptation is to try all these tricks to get money, but absent from their plan is how they serve their fellow man in order to receive that money. Stars, like the Kardashians are a marketing machine despite the carefree life displayed on the TV.  They have served many budding companies well by selling their products to certain demographics.  Most young people do not make that connection.   So they try things like trading Forex, gold or whatever the latest thing is.  It does not work as there is no service to their fellow man.  They get a job at a fast food chain and complain about their pay in accordance with their work.  Well sure, but again they are serving such few people that one can only expect a small income.   The better and more people one can serve, in general, the higher a person's income. "Assuming you are talking about an LLC in the United States, there are no tax repercussions on the LLC itself, because LLCs use pass-through taxation in the U.S., meaning that the LLC does not pay taxes. Whatever you take out of the LLC in the form of distributions goes onto your personal income tax as ordinary income, and you pay personal income tax on it.  See this link on the subject from the Nolo.com web site: Tax treatment of an LLC from the Nolo.com web site Repayment of your loan by the LLC would just be another business expense for the business itself.  I guess the question would then turn on what your personal tax repercussion would be for payments received from the LLC on the loan.  I would guess (and I emphasize ""guess"") that you would pay tax on any interest gain from the loan payments, which makes the assumption you made the loan to include interest.  If not (in other words, if you made this an interest-free loan) then it would be considered a wash for tax purposes and you would have no tax liability for yourself. To reiterate, the LLC (if it is a U.S.. entity) does not pay taxes.  Taxation of LLC income is based on whatever distributions the principals take out of it, which is then claimed as taxable personal income. My apologies to littleadv for not making my prior answer (I deleted it) more clear about my answer assuming you were speaking of a U.S.-chartered LLC. I hope this helps. Good luck!" "Between ""fresh out of college"" and ""I have no debts, and a support system in place which because of which I can take higher risks."" I would put every penny I could afford in the riskiest investment platform I was willing to.  Holding onto money in a bank account is likely to cost you %1-%2 a year depending on what interest rates are and what inflation looks like. Money invested in a market could loose it all for you or you could become an overnight millionaire. Loosing it all would suck but you are young you will bounce back. Losing it slowly to inflation is just silly when you are young.  If there is something you know you have to do in the next few years start to save for it but otherwise use the fact that you are young and have a safety net to try to make money." "For some states they give you a tax break when you make a deposit into the accounts.  The 11 year old is still 11 years away from college graduation, so the growth can be significant. The 15 year old will have most of their funds in safe investments to avoid a big drop just as the they need the money. many view the automatic adjustment in risk a benefit since if this wasn't in a ""529"" plan you would have tax issues when selling the investments during the shift." If you have no immediate need for the money you can apply the Rule of 72 to that money.  Ask your parent's financial advisor to invest the money.  Based on the rate of return your money will double like clockwork. At 8% interest your money will double every 9 years.  45 years from now that initial investment will have doubled 5 times.  That adds up pretty fast.  Time is your best friend when investing at your age. Odds are you'll want to be saving for a college education though.  Graduating debt free is by far the best plan. One big advantage that the 529 plan has is that most operate like a target date fund. As the child approaches college age the investment becomes more conservative. While you can do this by changing the mix of investments, you can't do it without capital gains taxes. Many of the issues you are concerned about are addressed: they are usable by other family members, they don't hurt financial aid offers, they address scholarships, they can be used for books or room and board.  Many states also give you a tax break in the year of the contribution.