Investors in their 20s will have least 40 years over which to accumulate retirement savings. It is also important to keep an emergency fund in cash. You'll gain interest and help prevent against the effects of inflation. Ultimately, the Roth combination of tax-free growth and no required withdrawals coupled with the superior returns posted by equities is virtually impossible to beat over time. In fact, many financial planners suggest that the rule of thumb should be subtracting your age from or even If you take the advice to invest most of your portfolio in stocks, the challenge becomes choosing which companies to invest in. The funds can be allocated among various investment choices and will grow tax-free until they are withdrawn to pay for qualified higher education expenses.
Buying One Stock vs.
Investing Strategies for Young Adults
Saving for College If you are still trying to get through school or have not yet started, then there are several other vehicles for you to consider socking money into: Whatever you do, always do your homework. About the Author Jeremy Bradley works in the fields of educational consultancy and business administration. Young investors today who wish to begin a savings plan face a bewildering array of investment options. Of course, IRAs and employer-sponsored retirement plans are the best places to start when saving for retirement. Young adults should take certain steps to ensure they remain financially secure. This means that most or all of your long-term savings should probably be placed in some form of equities, such as individual common stocks and stock mutual funds — and perhaps real estate, either in the form of a personal residence or a mutual fund that invests in real estate holdings.