Young investors who can emotionally weather the market’s ups and downs could even consider investing their entire portfolio in stock funds in the early stages, Fernandez says. A mutual fund pools cash from investors to buy stocks, bonds or other assets. Mutual funds offer investors an inexpensive way to diversify — spreading their money across multiple investments — to hedge against any single investment’s losses. Investing with smaller dollar amounts is also easier than ever.
Rethinking investment: Making money work for development
Investing in stock involves risks, including the loss of principal. Learn more about different accounts and investment products to discover the best options for your goals. Your investment strategy depends on your saving goals, how much money you need to reach them and your time horizon. For other investing goals, such as purchasing a home, travel or education, consider your time horizon and the amount you need, then work backward to break that amount down into monthly or weekly investments.
ETFs
If you need some help, you can use tools such as our retirement calculator to help you estimate how much you might need (and how to get there). When you buy an annuity, you purchase an insurance policy and, in return, you get periodic payments. These payments generally come down the road in retirement, but are often purchased years in advance.
High-yield savings accounts
And because it has to do with risking your money, it can be stressful too. No matter what investing topic interests you, the information you need is at your fingertips. Identify stocks currently trading close to their 52-week high. Discover companies with disruptive technologies or business models positioned for rapid growth.
World Investment Report 2025: International investment in the digital economy
Government bonds are virtually a risk-free investment, as they’re backed by the full faith plinko online and credit of the U.S. government. So, should you buy a bunch of gold bars and stash them in your basement? You could, but the easiest way to invest in gold is through more common financial instruments like the aforementioned ETFs, index funds or stocks. You can purchase these through an online brokerage account or even your retirement account and gain exposure to gold’s soaring prices without having to store physical gold. Index funds can be especially well-suited for young investors with a long timeline who can allocate more of their portfolio toward higher-returning stock funds than more conservative investments, such as bonds.
