Are you still going to school? Are you scared about finance but you want to become wealthy in your life? Do not dream to become the next Ronaldo … proactively work for you future!
are few suggestions you can put at good use.
Being financially savvy is one of the best investment you can make … at the beginning it may sound ‘boring’ but you will discover that, in reality, it is exciting and it will turn out extremely useful! Start online … you, as students, possess a natural aptitude to technology and you can use it at your advantage. There are a lot of references and opportunities on line and you can use them to really understand what interests you and where you want to invest.
Our suggestion is to start with Index Funds … they are less risky, less expensive and they require less ‘maintenance’. This means that you select your risk profile, the composition of your portfolio and then you monitor its performance … eventually adjusting the balance of the portfolio once or twice per year. For example if you go with something like a Vanguard Lifecycle fund you just pay 0.15% in fees and that’s it.
Mutual fund are more expensive because they are actively managed, but they are a good alternative too. Mutual funds can be concentrated in a particular business sector. Since investing for college students should be exciting, you may want to choose mutual fund investing based upon a business sector with which you are familiar. This will make the idea of investing more intriguing.
As you gain confidence, you may want to try riskier investments in stock. For this you will need more research and due diligence since your goal will be to determine which companies will be successful in their business sector. Here Warren Buffett can be a good mentor … research him and his investments. Anyway, many online tools are available for use in determining emerging companies and their value.
What we use and suggest is Betterment …they automatically diversify you across a whole set of investments based on your level of risk. The only decision you have to make is what level of risk you’re willing to take. It’s High risk, high reward is 100% stocks and 0% is the conservative approach with all bonds.
No matter how you choose to invest, remember that investing is for your future. Don’t look for any ‘get rich quick schemes’ …. They do not exist!. The nature of investing should be to build solid income generating resources and learning to navigate the complicated worlds of personal finance and investment strategy.
There are two good news for you young adults! First … you don’t need a lot of money to start investing. Online brokerage houses and investment companies have made investing for college students easier than ever with twenty-four hours a day, seven days a week services. Second … small steady gains today will become a lot of money in your future.
In summary … Investing is putting money away for the future and to start as student is the perfect strategy because time will be your friend. Investments are based upon compound interest …. And the single biggest factor that makes compound interest work for investors is time! On top of this you will start gaining experience on the topic early on, which will make you a better investor in your future.
is on your mind? Are you interested about investing? Let us know if you have