Investing: A Beginner’s Guide

If you’re under the age of 30 or have children under the age of 30, chances are investing is still a strange, confusing idea. Especially confusing is what would seem to be the most basic step- how does one even start investing? However, maybe now is the perfect time to start- the younger, in fact, the better.  The best time to start investing is when you are still young since most young people have minimal expenses and almost no debt.

Young people enjoy work-subsidies to commute, parents’ health insurance, and cheap rent, usually leaving them with a good amount of money for investment.  The internet has many suggestions on some of the investment opportunities that young people can pursue, but one must be very careful when selecting an investment opportunity. For instance, you can go for certain stocks that seem good, but without proper market analysis you could end up losing all of your money.

The Good News

You no longer need to worry about investment! Most available retirement plans, such as a 401(k) or, for federal and postal employees, the TSP, are perfect investment opportunities for young people. It is important to point out that you only need to contribute 5% of your salary to a retirement plan and enjoy all the benefits that come with this critical invest portfolio. The best time to save for your retirement years is the early years of your adult life. You may not see the benefits of investing in a retirement plan shortly but the long-term benefits associated with this type of investment are not worth missing.

You can achieve your long-term financial goals if you are not a patient person.  There are a lot of compound interest benefits during the early years of retirement saving that young people should take advantage of to have financial security in the future.  This is a straightforward plan with fewer complications.

It is a good idea for young people to start investing in their retirement as early as possible before they can get entangled with other types of investment. Having a strong financial foundation includes; putting aside at least 10% of your salary towards long-term investment like a retirement fund, building good credit, and creating an emergency fund.

Investing in stocks and bonds may have some short-term benefits as you may end up spending the money shortly. Also, there is a possibility of negative returns when you have invested in stocks and bonds and forced to sell some of your shares at a loss. Therefore, the only way to avoid debts and live a comfortable life during retirement is by saving for your retirement.