By: Rachel Graf
Americans aren’t investing the way they used to. A study released in early April revealed that 52% of Americans have no money invested in the stock market. There are many predictions as to why people aren’t investing. The two most prominent reasons are distrust and a lack of knowledge. Investing can feel overwhelming sometimes, especially to young adults. We don’t have a lot of disposable money, and many of us have little to no knowledge of the investing world. In a recent Forbes article on the lack of investors in the market right now, Lauren Gensler explains that even investing a small amount of money each year can yield a significant profit.
So as we prepare to enter the real world (duh duh duh), how can we take the plunge into the stock market?
Marketplace (American Public Media) has some great information about starting a financial planning process. Dan Bobkoff created a guide for young adults and new investors. If you don’t know a thing about the stock market, reading investor material can seem like trying to read a foreign language. The guide features a glossary of investing terms and quick questions that can having you speaking REIT and Hedge Funds in no time. Through this young adult’s guide to investing you can learn more about choosing the right type of account in which to invest, choosing a financial adviser, finding the best rates and even managing student loans. There are numerous tools out there to get you started.
When you get your first job, most likely there will be an opportunity to invest in a retirement fund (401k). This is an easy and manageable way to get started because your employer will do all the financial work and you will reap the benefits. The earlier you begin, the less money you will have to save overall for retirement in the long run. When you get the 401k information, then research the best option for you; that’s where the online resources come into play.
You aren’t too young to invest. Being smart with your money can pay off in the future, literally. It is important to be careful, but investing isn’t as scary as we may think, so let’s take off the floaties and dive in.
Photo courtesy of www.stockmonkeys.com