Investment Ideas For Your Early 20's
Investment Categories For The Youth
There is an increasingly broad amount of investment categories for the young investor getting
started today. Ultimately, there are hundreds of thousands of different products that you can go
with. But with the help of a little research, choosing the right investment strategies or short term
loans, it is not as hard as it's often chalked up to be, for young people. Look no further than your
own financial desires. By assessing what you want your financial situation to look like, you're on
good ground to start with.
Remember that when you are young, the greatest gift you have on your side is time itself.
From here on out, you should be focused on financial growth. Consider that if you are in your
twenties, your focus over the next 40 years should be to build a retirement and more. Now, take a
look at history. The data displays that real estate and stocks are two of the only forms of assets
that can grow faster than inflation. What does that tell you? Well, you should definitely be thinking
about investing in good stocks, short term loans, and property as you move forward. Do your
research, and find some good stocks and/short term loans to buy shares in. Make sure that the
majority your savings are placed in one or both of these two categories. Stocks, mutual funds, and
real estate investments done properly can allow you to acquire massive wealth. Once you stop
working, you will thank yourself for the growth of your investments that you decided on when you
were young.
Short Term Loans
401K’s, IRA’s, and short term loans are great starting points for growing a retirement fund.
These programs are often employee supported, and will match the money you throw into them as
you go. By doing so, you can tremendously grow your retirement. Some of these plans offer 50%
matches on the initial 5%. Long-term, this can result in thousands of dollars in the future. Now,
you have to decide whether you want a traditional IRA or a Roth IRA. Some plans are taxable upon
withdrawal, while others are not. Many experts advise young people to go with a plan that offers
tax free withdrawals.
Purchasing A Home
It has been traditionally held that buying a home with a short term loan can be a great
investment as well. But you need to take a few things into consideration before doing so. How long
you are planning your stay, being one of these factors. You also need to take a look at what the
interest rates are at the moment. Your finances, and what your rental price will end up being, is
another important thing to consider. For short term residences, it is probably more financially
worthwhile just to rent. This is so, because it can take up to 5 years, to build up the equity needed
to make buying make sense in the first place.
What About College?
Whether or not you are done with college or considering it, consider stashing money in the
following places while you make your decision. 529 Plans are college savings plans that allow you
to stash away money for when the time finally comes to go to University. The funds themselves can
be taken from several places in your personalized financial model. Usually, they are tax free as they
grow, and untaxed until withdrawn when you decide to go to school. There are other educational
college savings accounts that you can look into. Most banks will assist you in setting up college
savings accounts. Usually they will require an annual limit you must contribute for the account itself
to be sustained. These accounts are not only viable to your interests as a student but will give you
an investment taste that may be hard to discover otherwise. As savings wisdom is illuminated in
the short term you will discover the importance of investing in the future when you are all done with
school.
You may also wish to take a look at US Savings Bonds. These are great for conservative
investors that want low-risk options. Therefore, they appeal to young investors. Usually
accumulated interest is tax free, maximizing growth, and giving you further options for paying for
school. Short term loans are also recommended by Cash Kitty.