Hi everyone,
I’m 25 and finally ready to take investing more seriously. I want to set myself up for the future and focus on long-term growth rather than quick wins.
A bit about my situation:
- No major debt, stable job, and I can set aside money monthly.
- Emergency fund is covered.
- Open to learning and managing my own investments, but also value simple/automated approaches.
For those of you who started investing around this age (or wish you had):
- What strategies worked best for you?
- Is it smarter to go heavy on index funds/ETFs at this stage, or diversify into things like real estate, bonds, or even side-businesses?
- How do you balance risk vs. long-term reward in your 20s?
- Anything you regret not doing earlier?
Best investing plan for a 25-year-old looking to build wealth long-term?
byu/Remarkable-Sand-5059 ininvesting
Posted by Remarkable-Sand-5059
10 Comments
IREN stocks
It’s better to manage them yourself after all. It’s your money and you can make the most of it. Time is your friend and what helps me at the start is putting the money into growth, after a while when the money grows I put them into passive income because more money makes more passive income, which on the other hand grows the holdings faster for even more passive income.
The internet is full of nonsense about investing in companies and whatever, buy Blue Chip companies and grow your money slow. Slow and steady wins the race
At the start if you know almost nothing then it’s always good to invest into ETFs until you get the hang of it and then eventually get into single stocks.
Just consistently invest in the S&P 500 like VOO or VFIAX. Reddit is a horrible place for serious advice most of the time because it’s nothing but doom and gloom. Everyone thinks they’re a master trader and knows what’s gonna happen before it does. In April the market had a perfect sale and people were constantly saying “it’ll get worse this is just the beginning” and here we are 20%+ later. If you’re consistently buying, the ups and downs are moot. Market down? You get more shares per dollar. Market high? Less shares per dollar. Do that over 30 years and it’ll be a great nest egg but you have to detach your emotions from your money and what it’s intended to do.
SPMO , done
Go read a couple books… I would recommend an easy and then a couple intermediate:
1. Easy: Allen Roth “how a second grader beat wall street”
2. Intermediate: Rick Ferri “all about asset allocation” and Dr. Bernstein “Intelligent asset allocator”
After the above go the “bogleheads” internet website. Read and ask questions. THE BEST forum on the net.
Good way to learn is reading The Intelligent Investor, One Up on Wall Street, Winning the Losers Game. Much depends on what you are trying to do. If it’s building wealth then capital appreciation is the objective with compounding by a few competitively advantaged high growth and roic entities. Dividend focus reduces multiples and brings income. Your specific situation determines what your mindset and objective is. Start with S & P 500 and Global market ETF. Good luck with your investments👊🏻
Educate yourself how renting can be an advantage over home ownership if you play it smart. At the very least, consider buying a multi unit property, and living in one of them.
and how old are you really?
I suggested to my 33 yo daughter at Mayo just do Roth FRBUX simple set & forget. It’s 90% stock 10% bonds. Because she really not interested in learning. So a TDF is easier.
Are you interested in investing? If yes. Go read. If not hire a professional.
Make no choices – you’re 25 and going to make all the wrong ones.
Get of the internet and read a book on investing at the library. Then another. Then another. Then come to reddit and laugh at peoples responses.
Then hire a professional and work on other aspects of your life.