5 Assets Everyone Should Invest In (In their 20s & 30s) – Foolinvestor

If you are in your 20s or 30s, and you plan on having a comfortable retirement, you might not have a lot of options, but one of the best ones is investing early. To live a comfortable life you need a substantial amount of wealth. And one of the best ways of doing this, especially for the working class, is to invest their money.  

Here’s a great example, Let’s say you decide to start investing $500 per month and earn a 8% investment return. If you start at age of 25 and continue that strategy until you’re 60, you’ll have $2.16 million at retirement. 

But if you start investing at 40 instead of 25, you would only have $341,000. Of course, this simple example isn’t anything new, and it’s dependent on an investment earning an 8% compounding year on year investment, not factoring in inflation. 

In short, by starting early, you are setting yourself up for success. In today’s video, we’ll be looking at some of the most important assets and investment decisions you can make while young. Now, let’s begin. 

So, let’s start with the first one. 

1. Index Funds Stocks are one of the best investments you can make before turning 40. While they may have very high risk, the returns are among the highest. As you start your investment journey, you have a lot of time to make and learn from mistakes, but you should always make smart, calculated investments. Stocks have an average return rate of 10% based on the S&P 500 index as a benchmark. The truth is, not many investments will have such a high return rate. As you build your index fund portfolio, consider adding bonds too. While bonds may have the lowest return rate, they are the most secure. You need to ensure your portfolio has about 10 – 20 % of weighted bonds. This ensures your investment is more secure. Additionally, you could add the percentage and adjust it based on the risk tolerance you have. 

2. Real Estate – You will hardly ever go wrong with real estate. Real estate is one of the best assets for multiple reasons. Firstly, it helps to diversify our investment. Second,  real estate assets always appreciate in value. 

Owning a residential property reduces your expenses, such as rent. Once you own your  home, you can look into building other commercial properties. These could be multi-unit homes, townhouses, offices and other properties. 

However, if you’re not able to invest directly into the real estate market, there are other options available. There are several crowdfunding platforms where you can invest as little as $500. The money invested would then be collectively invested into real estate properties together with other investors’ contributions. These investments are known as REITs (Real Estate Investment Trusts). 

3. Education – 20s are the best time to study. According to research, your 20s and early 30s are the easiest time for you to acquire new knowledge. Therefore, it could be the best time to get that extra degree. Acquiring education is important as it can set you up for career success. However, you need to understand that not all education or learning is an asset. As you do this, be careful because some learning can be termed a hobby and probably can’t be monetized. If you want to invest in education, start by looking for careers and one that can bring about success. This could also be the best time to improve your financial literacy. 

4. Startup – Start-Up Business while you’re young. Why? With a business, the returns are unlimited. You will have the capacity to earn as much as you can. With an unlimited ROI. Another investment you should make in your 20s is a start-up business. You don’t necessarily have to start the business yourself, you can invest in other people’s businesses in exchange for equity in their business. 

For example, you could be an angel investor, and this is a great option if you know the founder. There are multiple crowdfunding sites with incredible startups that have high potential. Before investing in a company, ensure you read about the founder in-depth and understand the story behind the company. Choose companies that have a strong storyline and are backed by founders who have some form of education, experience, or training in the business industry. 

5 –  Growth stocks & dividend stocks, We have made it very clear that being in your 20s and 30s is an opportunity to make risky bets, because if you lose your money at this stage, you still have time to recover. So investing in stocks offers excellent returns.Growth stocks are simply stocks that are expected to grow at significantly higher rates than the industry average. These stocks generate more sustainable positive cash flows and revenues than their peers. 

Dividend stocks, on the other hand, are usually stocks of companies that are financially stable and mature, which means the share prices are less volatile than growth stocks. Dividend stocks should be included in your portfolio at a young age. They provide opportunities to earn an income consistently over a long period of time, provided the companies keep performing well. 

You can simply start investing by using the wealthsimple app. Because it charges 0 % commission and is the best stock trading app for beginners, with an easy to use interface. You can download this app using the link in bio and get free stocks in return. Link is in bio!

If you haven’t liked our page yet, what are you waiting for? We have amazing content that will help you grow and build your life, so make sure to check our other videos out. With that said, have a great day! and see you in the next one.


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