10 answers
Ty
Student
1
Question
Asked
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How do I invest or why should i?
What should I invest in or how do I do it cause I’m not looking to invest right now I would just like to know how to just in case I wanted to in the future.
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10 answers
Bernardo Azevedo
Consultant
4
Answers
New York, New York
Updated
Bernardo’s Answer
In addition to what many have written here, make sure to start investing early as that pays significant dividends later in life! Compounding interest is a really powerful thing and could put you in a very different financial scenario by the time you're 60 if you start early!
Naila H. Carter, CMA
Product Manager
4
Answers
Bothell, Washington
Updated
Naila H.’s Answer
As a middle or high school student, here's a friendly guide to help you start your investment journey:
1. First off, don't worry about diving right in. It's crucial to get a handle on the basics of personal finance and investing before you start. Remember, it's okay to take small steps in the beginning.
2. Being a high school student, you might not have heaps of money to invest, and that's perfectly fine! You can kick off your investment journey with small amounts, investing in affordable index funds or exchange-traded funds (ETFs).
3. If you're not yet 18, you'll need a grown-up to help you out. They can assist you in opening a custodial account. This type of account lets your parents or guardians oversee your investments until you're old enough to manage them yourself.
4. Patience is key when it comes to investing. It's a marathon, not a sprint. Concentrate on building a diversified portfolio and sticking with it for the long haul.
5. Lastly, always remember that investing comes with its risks, and there's no surefire way to guarantee profits. Do your homework, research thoroughly, and don't hesitate to seek advice from a financial professional.
1. First off, don't worry about diving right in. It's crucial to get a handle on the basics of personal finance and investing before you start. Remember, it's okay to take small steps in the beginning.
2. Being a high school student, you might not have heaps of money to invest, and that's perfectly fine! You can kick off your investment journey with small amounts, investing in affordable index funds or exchange-traded funds (ETFs).
3. If you're not yet 18, you'll need a grown-up to help you out. They can assist you in opening a custodial account. This type of account lets your parents or guardians oversee your investments until you're old enough to manage them yourself.
4. Patience is key when it comes to investing. It's a marathon, not a sprint. Concentrate on building a diversified portfolio and sticking with it for the long haul.
5. Lastly, always remember that investing comes with its risks, and there's no surefire way to guarantee profits. Do your homework, research thoroughly, and don't hesitate to seek advice from a financial professional.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6193
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello Ty,
How to Invest and Why You Should Consider Investing
Investing is a way to potentially grow your wealth over time by putting your money into various financial instruments with the expectation of earning a return on that investment. Here are some key reasons why you should consider investing:
Wealth Building: Investing allows you to grow your money faster than leaving it in a savings account due to the potential for higher returns. Over time, investments have historically outperformed cash savings.
Beat Inflation: By investing, you have the opportunity to earn returns that outpace inflation. Inflation erodes the purchasing power of your money over time, so investing can help you maintain or increase the real value of your wealth.
Financial Goals: Investing can help you achieve specific financial goals such as buying a house, funding your children’s education, or saving for retirement. By investing wisely, you can work towards these goals more effectively.
Diversification: Investing allows you to diversify your portfolio by spreading your money across different asset classes (such as stocks, bonds, real estate, etc.), which can help reduce risk and protect against market volatility.
Passive Income: Some investments, such as dividend-paying stocks or rental properties, can generate passive income streams that provide ongoing cash flow without requiring active work.
How to Start Investing:
Set Financial Goals: Determine what you are investing for (e.g., retirement, education, buying a home) and how much risk you are willing to take.
Educate Yourself: Learn about different investment options, risk factors, and strategies before diving into the market.
Open an Investment Account: Choose a brokerage firm or investment platform where you can buy and sell investments.
Build a Diversified Portfolio: Spread your investments across different asset classes to reduce risk.
Monitor and Rebalance Your Portfolio: Regularly review your investments and make adjustments as needed based on changes in your financial situation or market conditions.
Seek Professional Advice: Consider consulting with a financial advisor who can provide personalized guidance based on your individual circumstances and goals.
Remember that all investments come with risks, including the potential loss of principal. It’s essential to do thorough research and seek professional advice before making any investment decisions.
Top 3 Authoritative Sources Used in Answering this Question:
Investopedia
The Balance
NerdWallet
These sources provide comprehensive information on personal finance, investing strategies, and market insights that are widely recognized for their accuracy and reliability in the financial industry.
God Bless You,
JC.
How to Invest and Why You Should Consider Investing
Investing is a way to potentially grow your wealth over time by putting your money into various financial instruments with the expectation of earning a return on that investment. Here are some key reasons why you should consider investing:
Wealth Building: Investing allows you to grow your money faster than leaving it in a savings account due to the potential for higher returns. Over time, investments have historically outperformed cash savings.
Beat Inflation: By investing, you have the opportunity to earn returns that outpace inflation. Inflation erodes the purchasing power of your money over time, so investing can help you maintain or increase the real value of your wealth.
Financial Goals: Investing can help you achieve specific financial goals such as buying a house, funding your children’s education, or saving for retirement. By investing wisely, you can work towards these goals more effectively.
Diversification: Investing allows you to diversify your portfolio by spreading your money across different asset classes (such as stocks, bonds, real estate, etc.), which can help reduce risk and protect against market volatility.
Passive Income: Some investments, such as dividend-paying stocks or rental properties, can generate passive income streams that provide ongoing cash flow without requiring active work.
How to Start Investing:
Set Financial Goals: Determine what you are investing for (e.g., retirement, education, buying a home) and how much risk you are willing to take.
Educate Yourself: Learn about different investment options, risk factors, and strategies before diving into the market.
Open an Investment Account: Choose a brokerage firm or investment platform where you can buy and sell investments.
Build a Diversified Portfolio: Spread your investments across different asset classes to reduce risk.
Monitor and Rebalance Your Portfolio: Regularly review your investments and make adjustments as needed based on changes in your financial situation or market conditions.
Seek Professional Advice: Consider consulting with a financial advisor who can provide personalized guidance based on your individual circumstances and goals.
Remember that all investments come with risks, including the potential loss of principal. It’s essential to do thorough research and seek professional advice before making any investment decisions.
Top 3 Authoritative Sources Used in Answering this Question:
Investopedia
The Balance
NerdWallet
These sources provide comprehensive information on personal finance, investing strategies, and market insights that are widely recognized for their accuracy and reliability in the financial industry.
God Bless You,
JC.
Tommy Zanowic
Client Arrangements Manager
6
Answers
New York, New York
Updated
Tommy’s Answer
*Not a financial advisor and this is not investment advice*
This truly depends on a whole bunch of different factors at the time in which you want to start investing that are all mentioned in the other answers(risk tolerance, time horizon, goals, etc.). As a general rule of thumb for beginners, and what has worked really well for me is investing on a monthly (or bi-monthly) basis into an index fund / ETF that closely follows the market. This will allow you to dip your toes into the investing world without taking on too much risk in the long-term (financial advisors rarely beat the market consistently!). It will also give you a real chance to experience the magic of compound interest.
I have found that financial planning (budgeting, saving, etc.) really drives the motives behind investing and depending on WHY you are investing will have great influence on WHAT you should be investing in. Short-term = high-yield savings accounts with a high interest rate, Long-term = low cost ETF that follows the market.
This truly depends on a whole bunch of different factors at the time in which you want to start investing that are all mentioned in the other answers(risk tolerance, time horizon, goals, etc.). As a general rule of thumb for beginners, and what has worked really well for me is investing on a monthly (or bi-monthly) basis into an index fund / ETF that closely follows the market. This will allow you to dip your toes into the investing world without taking on too much risk in the long-term (financial advisors rarely beat the market consistently!). It will also give you a real chance to experience the magic of compound interest.
I have found that financial planning (budgeting, saving, etc.) really drives the motives behind investing and depending on WHY you are investing will have great influence on WHAT you should be investing in. Short-term = high-yield savings accounts with a high interest rate, Long-term = low cost ETF that follows the market.
Alireza Poostindooz
financial consultant
41
Answers
Isfahan, Isfahan Province, Iran
Updated
Alireza’s Answer
🤔 Investing is a personal and long-term decision, and it's important to conduct thorough research and seek advice from financial professionals before making any investment choices. However, I can provide you with some general guidance on how to get started with investing:
1. Set clear financial goals: Determine your investment objectives, whether they are short-term (e.g., saving for a vacation) or long-term (e.g., retirement planning). Setting clear goals will help you make informed investment decisions.
2. Understand your risk tolerance: Assess how comfortable you are with taking risks. Investments carry varying levels of risk, and it's essential to choose investment options that align with your risk tolerance.
3. Educate yourself: Learn about different investment vehicles such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), and real estate. Understand their characteristics, potential returns, and associated risks.
4. Diversify your portfolio: Spreading your investments across different asset classes and sectors can reduce risk. Diversification allows you to potentially benefit from positive performance in some areas while offsetting losses in others.
5. Start with a financial plan: Develop a budget, manage your debts, and build an emergency fund before investing. It's vital to have a solid foundation for your financial well-being before committing to investments.
6. Consider seeking professional advice: If you're unsure about how to start investing, consider consulting with a financial advisor who can provide personalized guidance based on your financial situation and goals.
Remember, investing involves risk, and past performance is not indicative of future results. It's crucial to be patient, think long-term, and regularly review and adjust your investment strategy as needed. 📈💰📊
1. Set clear financial goals: Determine your investment objectives, whether they are short-term (e.g., saving for a vacation) or long-term (e.g., retirement planning). Setting clear goals will help you make informed investment decisions.
2. Understand your risk tolerance: Assess how comfortable you are with taking risks. Investments carry varying levels of risk, and it's essential to choose investment options that align with your risk tolerance.
3. Educate yourself: Learn about different investment vehicles such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), and real estate. Understand their characteristics, potential returns, and associated risks.
4. Diversify your portfolio: Spreading your investments across different asset classes and sectors can reduce risk. Diversification allows you to potentially benefit from positive performance in some areas while offsetting losses in others.
5. Start with a financial plan: Develop a budget, manage your debts, and build an emergency fund before investing. It's vital to have a solid foundation for your financial well-being before committing to investments.
6. Consider seeking professional advice: If you're unsure about how to start investing, consider consulting with a financial advisor who can provide personalized guidance based on your financial situation and goals.
Remember, investing involves risk, and past performance is not indicative of future results. It's crucial to be patient, think long-term, and regularly review and adjust your investment strategy as needed. 📈💰📊
James Hsu
Finance Manager
1
Answer
Bellevue, Washington
Updated
James’s Answer
The thread is already overflowing with valuable insights, but I'd love to sprinkle in a few more nuggets of wisdom:
1. Kick-start your journey as soon as possible. This doesn't necessarily imply diving headfirst into investing, but rather, prioritizing learning and knowledge acquisition (and remember, this doesn't have to be through formal education – resources like Google and chatGPT are at your fingertips!).
2. When you're young, don't shy away from taking well-thought-out risks. As you tread further along your path, you can then begin to fine-tune your risk management.
3. Devote time to studying the markets that pique your interest, be it a specific industry, sector, or geographical region. Stay abreast of global happenings, be they financial, economic, or political. Remember, everything is interconnected.
Investing is a lifelong adventure, and the sooner you embark on this journey, the more rewards you stand to gather!
1. Kick-start your journey as soon as possible. This doesn't necessarily imply diving headfirst into investing, but rather, prioritizing learning and knowledge acquisition (and remember, this doesn't have to be through formal education – resources like Google and chatGPT are at your fingertips!).
2. When you're young, don't shy away from taking well-thought-out risks. As you tread further along your path, you can then begin to fine-tune your risk management.
3. Devote time to studying the markets that pique your interest, be it a specific industry, sector, or geographical region. Stay abreast of global happenings, be they financial, economic, or political. Remember, everything is interconnected.
Investing is a lifelong adventure, and the sooner you embark on this journey, the more rewards you stand to gather!
Mohit Goyal
Software Engineer
50
Answers
Gurugram, Haryana, India
Updated
Mohit’s Answer
Action Steps:
Step 1: Start by educating yourself about investment. There are a multitude of strategies available, each tailored to different goals, timelines, financial situations, and ages.
Step 2: Identify your personal objectives and set a timeline. This will guide your investment plan.
Reasoning:
The motivation behind this is your goal. Investing is not just about growing your wealth, but also about securing your future.
Options:
Your choices will be influenced by your objectives and timeline. You might consider investing in equities, debt securities, or precious metals.
Learning Resources:
There are numerous courses available to help you understand investing. Begin with small investments to gain practical experience and learn as you go.
Step 1: Start by educating yourself about investment. There are a multitude of strategies available, each tailored to different goals, timelines, financial situations, and ages.
Step 2: Identify your personal objectives and set a timeline. This will guide your investment plan.
Reasoning:
The motivation behind this is your goal. Investing is not just about growing your wealth, but also about securing your future.
Options:
Your choices will be influenced by your objectives and timeline. You might consider investing in equities, debt securities, or precious metals.
Learning Resources:
There are numerous courses available to help you understand investing. Begin with small investments to gain practical experience and learn as you go.
Sharon Collins
partner channel development /Marketing
14
Answers
Cave Creek, Arizona
Updated
Sharon’s Answer
It's fantastic that you're showing an early curiosity in the field of investment! Starting early on this journey can significantly boost your potential earnings. The secret lies in maintaining regularity - invest a fixed sum of money consistently. As investing in individual stocks can be risky for beginners, most experts advise starting with index funds. Before you dive in, it's wise to gather knowledge from various reliable sources to build a strong foundation in investing. Here are some websites you can explore:
Educational Websites for Investment
1. Investor.gov - This website is an initiative by the Securities and Exchange Commission (SEC) aimed at safeguarding American investors from fraud. It offers educational resources for teenagers on topics like stocks, ETFs, and other investment types, even touching upon the basics of cryptocurrency. The site also features financial calculators to help you understand concepts like compound interest and mutual fund fees.
2. HowtheMarketWorks.com - This site not only hosts a stock market trading game (using a virtual or simulated portfolio) but also includes an educational section with lessons about the stock market. It seems to support a financial literacy curriculum intended for high school teachers.
3. WallStreetSurvivor.com - Similar to the previous site, WallStreetSurvivor also hosts a stock market trading game with an educational section. It too appears to provide resources for a financial literacy curriculum for high school educators.
4. Investopedia.com - Investopedia is an education-centric website catering to both beginner and advanced investors. It features an extensive dictionary of basic investment terms, each well-defined and accompanied by relevant articles. Investopedia has been a reliable source of investment information for many years.
5. TeenVestor.com - This site is a gateway to investment basics for teenagers and novice investors. TeenVestor also offers a course called TeenVestor Stock Certification Course to teach teens how to become stock investors (note that this course is paid and I can't personally guarantee its effectiveness). However, the site does provide some valuable free resources alongside the paid options.
Educational Websites for Investment
1. Investor.gov - This website is an initiative by the Securities and Exchange Commission (SEC) aimed at safeguarding American investors from fraud. It offers educational resources for teenagers on topics like stocks, ETFs, and other investment types, even touching upon the basics of cryptocurrency. The site also features financial calculators to help you understand concepts like compound interest and mutual fund fees.
2. HowtheMarketWorks.com - This site not only hosts a stock market trading game (using a virtual or simulated portfolio) but also includes an educational section with lessons about the stock market. It seems to support a financial literacy curriculum intended for high school teachers.
3. WallStreetSurvivor.com - Similar to the previous site, WallStreetSurvivor also hosts a stock market trading game with an educational section. It too appears to provide resources for a financial literacy curriculum for high school educators.
4. Investopedia.com - Investopedia is an education-centric website catering to both beginner and advanced investors. It features an extensive dictionary of basic investment terms, each well-defined and accompanied by relevant articles. Investopedia has been a reliable source of investment information for many years.
5. TeenVestor.com - This site is a gateway to investment basics for teenagers and novice investors. TeenVestor also offers a course called TeenVestor Stock Certification Course to teach teens how to become stock investors (note that this course is paid and I can't personally guarantee its effectiveness). However, the site does provide some valuable free resources alongside the paid options.
Perry Li
Account Executive
3
Answers
San Francisco, California
Updated
Perry’s Answer
Hi Ty,
It's great that you're thinking about investing at such a young age. Investing is an incredible journey where earnings compound exponentially as time passes. There's a common saying that it's advantageous to begin investing as early as possible.
Thankfully in this day and age, there are numerous resources for you to learn investing. I'd start by reading the fundamental investing books and methods (value investing and understanding business valuation), browsing the internet for more resources, then getting into specific niches like growth investing or trading.
Good luck on your investing journey!
It's great that you're thinking about investing at such a young age. Investing is an incredible journey where earnings compound exponentially as time passes. There's a common saying that it's advantageous to begin investing as early as possible.
Thankfully in this day and age, there are numerous resources for you to learn investing. I'd start by reading the fundamental investing books and methods (value investing and understanding business valuation), browsing the internet for more resources, then getting into specific niches like growth investing or trading.
Good luck on your investing journey!
Darryl Talbert, MBA, PMP
Finance Manager
2
Answers
Atlanta, Georgia
Updated
Darryl’s Answer
I think the first thing you need to do is ask yourself why you want to invest. This will help you determine what your investment strategy should be. For example, if your goal is to invest to save for retirement then you will probably use a long term investment strategy. But if your goal is to invest to make money much sooner than that you will use a short-term investment strategy. Those are two very different reasons and will guide you to two very different strategies. Long term investment usually means that you will choose low risk investments that will make smaller profits over a long time but will accumulate. Short-term investment to make larger profits sooner has higher risks (such as possibly losing the money you invested) but it may also have a bigger profit in the near future.
Make a plan for your life, your career, and the type of risks you are willing to take
Decide which strategy fits your plan
Research how different types of investment function (stocks, bond, 401k accounts, IRA account, real estate, business ownership
Read investment publications such as the Wallstreet journal
Seek professional investment advice from a financial counselor
Darryl recommends the following next steps: