If you are a millennial, you should be already investing your money to save for retirement. If you put your money to work soon enough, you will have more time to see it grow. Here are some investment options for you to explore.
Ideally, you should put your money in a long-term investment, such as a retirement fund, so it grows and grows for years. But you might feel more comfortable with investments that will let you access your funds sooner. If that is the case, here are some options for you to consider:
If you invest in treasuries, you are investing in the U.S. Government. And the Government always pays its debts. This is why treasuries are such popular investments. And even though interest rates are not that high, this is still a good option for a short term investment. Some treasury bonds payout in as quickly as 1 month.
2- Broad Index Funds
It is usually said that it’s better not to invest in stocks if you are going to need your money within 5 years. This is because the market fluctuates rapidly and if you need to get your money back before it recovers, you might lose some of your funds. However, if you take any 5-year portion of stock market performance, you will find that most times it performs well. If you think this is an option for you, you can consider buying shares in a low-cost mutual fund so that you can get exposure to a wide variety of stock market options.
3- Individual Stocks
If you can keep your money invested for a long time, you might consider individual stocks as an option. If you are just getting started, you can look for companies with the potential for steady growth. Do some research to find companies with high valuation and good cash flow. Purchasing shares of these companies is usually safer but has fewer returns. If you want to get more profit, you can buy shares of more volatile companies, but this is riskier.
4- Exchange Trade Funds (ETFs):
ETFs are basically like mutual funds, but they trade more like stocks. The minimum investment is usually lower than the ones required in mutual funds, so ETFs are becoming increasingly popular over the years.
Whatever your option is, if you are a millennial, you should be investing your money aggressively to make the most out of it!