As international students on F1 visas in the US, we have limited investment options due to visa restrictions. However, there are still some common investment channels we can consider, such as opening US bank accounts, investing in US stocks and ETFs, participating in retirement accounts, and more. Proper investment planning is crucial to make the most of our money during school years.
Opening US bank accounts provides basic investment services
As F1 students, we can open bank accounts with large national banks like Bank of America, Chase, and CitiBank. These bank accounts allow us to earn interest, provide debit cards for payments, give access to online and mobile banking. Although the interest rates are very low, it still generates some investment income. We can also apply for credit cards with good rewards programs to earn cashback and points.
Investing in US stocks and ETFs is a common choice
The US stock market provides a good investment option for F1 students to grow money. We can open a regular investment account or IRA accounts with brokers like Charles Schwab, Fidelity, TD Ameritrade to invest in US stocks, ETFs and mutual funds. This allows us to benefit from the capital appreciation in one of the best stock markets globally. With dollar cost averaging and a long horizon, stock investment can achieve attractive returns.
Participating in retirement accounts enjoys tax benefits
F1 students can participate in retirement accounts like Roth IRA and 401K. The Roth IRA allows tax-free growth while 401K provides matching employer contributions. The tax-deferred benefits allow our investments to compound faster. The Roth conversion ladder also provides an avenue to access funds earlier if needed.
Other alternative investments cater to preferences
Besides the major channels above, F1 students can also consider other alternative investments like P2P lending, real estate crowdfunding, robo-advisors, and more. These options provide easy access, low costs and flexibility to accommodate different risk appetites and return objectives.
In summary, F1 students have several common investment options including US bank accounts, stocks, ETFs and retirement accounts that provide basic services, market growth potential and tax advantages. Further alternative investments can also match specific needs and preferences.