What should a 19 year old invest in?

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By Nick

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Hey there, young adults! Want to build wealth over the long term? Here are some investment options to consider: S&P 500 Index Funds, Real Estate Investment Trusts (REITs), robo advisors, fractional shares of a stock or ETF, buying a home, opening a retirement plan, paying off debt, and improving skills. Making smart financial decisions now can set you up for success in the future. So, let’s dive in and explore these options!

The Best Investments For Young Adults

As a young adult, investing can be a daunting task. With so many options available, it can be difficult to determine where to start. However, investing at a young age can be incredibly beneficial in the long run. Here are some of the best investments for young adults to consider:

Invest in the S&P 500 Index Funds

Investing in the S&P 500 Index Funds is a great way to get started in the stock market. This investment provides a diversified portfolio of 500 of the largest publicly traded companies in the US. This means that your investment is spread across multiple companies, reducing your risk of losing money. Additionally, the S&P 500 has historically provided strong returns over the long term.

Invest in Real Estate Investment Trusts (REITs)

Investing in Real Estate Investment Trusts (REITs) is another great option for young adults. REITs are companies that own and operate income-generating real estate properties. By investing in a REIT, you can earn income through dividends and potentially benefit from the appreciation of the underlying real estate assets.

Invest Using Robo Advisors

Robo advisors are automated investment platforms that use algorithms to manage your investments. These platforms typically have lower fees than traditional financial advisors and can be a great option for young adults who are just starting to invest. Additionally, robo advisors typically offer a variety of investment options, making it easy to diversify your portfolio.

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Buy Fractional Shares of a Stock or ETF

Buying fractional shares of a stock or ETF is a great way to get started in the stock market with a small amount of money. Fractional shares allow you to purchase a portion of a share, which means you can invest in companies that may have high share prices. This can help you build a diversified portfolio with a smaller initial investment.

Buy a Home

Buying a home can be a great investment for young adults. While it may require a larger initial investment, owning a home can provide long-term financial benefits. Homeownership can provide a stable living situation and can potentially appreciate in value over time.

Open a Retirement Plan — Any Retirement Plan

Opening a retirement plan, such as a 401(k) or IRA, is a smart investment for young adults. These plans allow you to save for retirement and can provide tax benefits. Additionally, many employers offer matching contributions to 401(k) plans, which can help you save even more for retirement.

Pay Off Your Debt

While not technically an investment, paying off your debt can be one of the best financial decisions you make as a young adult. High-interest debt, such as credit card debt, can quickly accumulate and cost you more in the long run. By paying off your debt, you can free up money to invest in other areas.

Improve Your Skills

Investing in yourself by improving your skills can be one of the best investments you make as a young adult. By improving your skills, you can potentially earn more money in your career and increase your earning potential over time. This can provide long-term financial benefits and help you achieve your financial goals.

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In conclusion, investing as a young adult can be a great way to build wealth over the long term. By considering these investment options and making smart financial decisions, you can set yourself up for financial success in the future.

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