What should a 19 year old invest in?

Photo of author

By Nick

Quick Peek:

Looking for the best investments as a young adult? Investing in the 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 are all great options. Starting early allows for more time for your money to grow and compound, leading to a financially secure future. Researching and understanding different investment options is key.

The Best Investments For Young Adults

As a young adult, investing your money can seem like a daunting task. With so many options available, it can be difficult to know where to start. However, investing at a young age can be one of the smartest financial decisions you can make. By investing early, you give your money more time to grow and compound over time. In this article, we will discuss some of the best investments for young adults.

Invest in the S&P 500 Index Funds

Investing in the S&P 500 index funds is a great way to get exposure to the stock market. The S&P 500 is a collection of the 500 largest publicly traded companies in the United States. By investing in an S&P 500 index fund, you are essentially investing in the entire stock market. This is a great option for young adults who are just starting out and don’t have a lot of money to invest. S&P 500 index funds are also a low-cost investment option, making them a great choice for those who want to keep their investment expenses low.

Invest in Real Estate Investment Trusts (REITs)

Real estate investment trusts (REITs) are companies that own and operate income-producing real estate. By investing in a REIT, you can get exposure to the real estate market without having to own physical property. REITs can be a great investment option for young adults who are interested in real estate but don’t have the capital to invest in a property. Additionally, REITs often pay out a high dividend yield, making them a great option for those who want to generate passive income.

READ  What is the top 2% income in the US?

Invest Using Robo Advisors

Robo advisors are online investment platforms that use algorithms to create and manage investment portfolios. Robo advisors are a great option for young adults who are just starting out and don’t have a lot of investment knowledge. Robo advisors are also a low-cost investment option, making them a great choice for those who want to keep their investment expenses low.

Buy Fractional Shares of a Stock or ETF

Fractional shares allow you to buy a portion of a share of a stock or ETF. This is a great option for young adults who don’t have a lot of money to invest but still want to get exposure to the stock market. Fractional shares are also a great way to diversify your portfolio without having to invest a large amount of money.

Buy a Home

Buying a home can be a great investment for young adults. Not only does owning a home provide a sense of stability and security, but it can also be a great long-term investment. However, it’s important to remember that buying a home comes with additional expenses such as property taxes, maintenance, and repairs.

Open a Retirement Plan — Any Retirement Plan

Opening a retirement plan is one of the smartest financial decisions you can make. By investing in a retirement plan at a young age, you give your money more time to grow and compound over time. There are many different types of retirement plans available, including 401(k)s, IRAs, and Roth IRAs. It’s important to research and understand the different types of retirement plans available to determine which one is right for you.

Pay Off Your Debt

While not technically an investment, paying off your debt can be one of the best financial decisions you can make. High-interest debt, such as credit card debt, can eat away at your finances and prevent you from investing in your future. By paying off your debt, you free up more money to invest in your future.

READ  Can I retire at 50 with $1 million dollars?

Improve Your Skills

Investing in yourself is one of the best investments you can make. By improving your skills and education, you increase your earning potential and open up more opportunities for yourself. This can include taking courses, attending seminars, or even pursuing a higher degree.

In conclusion, there are many different investment options available for young adults. It’s important to do your research and understand the different types of investments available to determine which one is right for you. By investing at a young age, you give your money more time to grow and compound over time, setting yourself up for a financially secure future.

A video on this subject that might interest you:

TO READ THIS LATER, SAVE THIS IMAGE ON YOUR PINTEREST: