I am 22 and have no debt or loans, I have $10k to invest but Im unsure where to start. I just know investing sounds like a good way to turn money into more money but Im not exactly sure how to go about investing so if theres any advice I'd really appreciate it.
Looking to invest money to make more money
byu/Batmanasaurus1 inpersonalfinance
Posted by Batmanasaurus1
7 Comments
The best way to invest is to predict how long you want to invest the money for and make a plan and stick to it. If you want to invest this money for 5+ years, put it in a diversified, low cost index fund like VTI or VOO. You should not check how it’s doing very often. your goal is to leave it invested in that one thing until you want to spend the money on something like a house, personal emergency, or retirement
You can also consider putting that money in an investment account that helps you avoid taxes like a Roth IRA. You can put up to 7k in one of those this year.
Overall, the best investment advice will be very boring. playing with individual stocks over a short duration is more akin to gambling than investing
Look up a local credit union near you. I can’t speak for all of them but a lot of CUs offer some kind of investment center that comes at no charge to members.
22 lots to cover yet in life. Cars, house, family etc. Risk in investing. Investing is long term. Open a brokerage I like Charles schwab. You can start with boring tbills or sgov funds. Extremely safe. From there you can go more risk. Lotta folks say vti, or voo for 10% historic returns. The hot investments seem to be gold and silver right now. go’s hot and cold. But really young whatever you can to get to the best job you can.
A Roth IRA might be appropriate for you because you can withdraw principal anytime, and you can withdraw a percentage of earnings after a period of time if it’s for a qualified reason, like first time home purchase.
There’s a super duper solid wiki for this sub. https://www.reddit.com/r/personalfinance/wiki/commontopics
ETA: it probably has almost every answer you need for this stage
Be careful chasing fast gains. Long term, low cost, diversified investing usually beats trying to outsmart the market.
It’s hard to give good investing advice without knowing more about the rest of your financial situation. I would think that the best approach for you is to get some direct advice from a financial advisor. I have accounts with both Schwab and Fidelity. With both of them you can open an brokerage account for free and the accounts don’t have any annual fee or hidden fees. They will assign you a financial advisor who will give you advice for free. They won’t do estate planning or tax planning for you, but for basic investing advice, I’ve found that they are quite helpful. Since you can have a much more detailed discussion with them, they will be able to give you advice that is tailored to your specific situation.
Good luck!