YouTube explanatory video
Description
Vocal Characteristics
Language
EnglishVoice Age
Young Adult (18-35)Accents
North American (General) Spanish (Central American) Spanish (South American - General)Transcript
Note: Transcripts are generated using speech recognition software and may contain errors.
If you are young, you need to make these 10 investments. We all want to be financially stable, and achieving financial freedom is the dream of a lot of people out there. But how can you reach financial freedom? How can you make your future financially secure? What are those long term investments that will help you make more money? Today, I will be sharing 10 top investment options that you can make to achieve that financial freedom. If you want to grow your money, these investment plans will surely help you watch this entire video to thoroughly understand the benefits of these investment options. It can sometimes be really challenging for you to understand how and where to invest your money. And although there is no shortage of information available on how to invest money, too much information consumption is be overwhelming. So in today's video, I will make it easier for you to understand these investment options. But before we start discussing those investment options, you need to understand why invest Why should you invest your money? The immediate answer to this question is, you need to invest your money to grow your wealth investing your money will help you to put it in vehicles that have the potential to earn strong return rates. If you are not investing your money right now, you're probably missing out on those crucial opportunities that will help you to increase your financial worth in the future. Obviously, you might also lose your money in this process, but the potential to build your wealth and grow your money is higher than if you never invested your money. You can also choose to save your cash instead. However, saving means that you are putting your wealth into cash products. Such a savings accounts, etcetera. But if you really want to get your debts under control and achieve financial freedom in the future, you should invest your money. Saving your money won't help you to grow your wealth. In comparison. Investing your money means that you will ultimately increase your wealth. Furthermore, investing your money depends on your goals, whether you have short, medium or long term goals. E. If you have short term goals or you might need your money within the upcoming five years, you shouldn't really invest. Instead save your cash in an emergency fund or into cash deposits such as bank accounts, etcetera. The reason that you should not invest in this case is that the stock market may go up or down in the short term, so you might lose your money if you invest it for less than five years. E. If you want to achieve that financial freedom when you do not have to worry about your bank account and your plans are long term, you need to invest your money. If you put your hard earned money into a savings account for the long term, inflation will undoubtedly impact the value of this money. In comparison, the stock market will provide better opportunities for greater returns in the long term. Now, if you have decided to invest your money, let me also tell you that you should not invest all your money and only one investment option. Instead, spread this amount across various investments. This process is known diversification, and it is always an excellent move to diversify your investments. Nowadays, there are several ways to invest your money. Depending on the level of risk you are willing to take to meet your requirements, you can invest your money in certificates of deposit, or you can also go for stocks or stock mutual funds, or ETFs. However, I would recommend you to diversify your investments and do a little of everything. In this way, you will have a portfolio that will be able to perform well in nearly any investment environment. What you need to consider before investing. Investing your money is your path to a secure financial future. But you should consider the importance of risk, a swell as the time horizon and achieving that financial freedom. High risk investments usually offer higher rates of returns, and vice versa. This means that secure investment options, like a certificate of deposit, will make less money. On the other hand, medium risk assets like bonds tend to have high yields, and lastly, high risk stocks will yield even higher rates of return. If you are in your 20 seconds looking to generate a higher return on your investments, you would probably take on higher risk. Overall, stocks have a strong record, and some investors even earn millions of dollars by investing stocks. They are also very well known for their volatility. You probably have seen a stock gyrate up to 50% within only one year, so will you be able to withstand a higher level of risk to earn a higher return on your money? It is always necessary to understand your risk, tolerance and whether you will panic if your investments make a loss. I would recommend that if a stock has the potential to rise, you should not sell it. If it goes down and committing to holding your investments for the long term will lower the risk of loss. When the holding period is mawr extended, you will surely have more time to ride out the ups and downs of the market. Now I will tell you the top 10 investment options, which will help you to make your financial future secure. One. Pay off debt You might be thinking that paying off debt is not actually investing your money right, but it is the best investment you can make in your 20 seconds. You need to start your investment journey by first paying off your debt. The student loan is one of the significant issues, and you might also have credit card loans or car loans. Debt will reduce your cash flow, and a considerable amount of your monthly income will go for debt payments. You can always start by paying off your credit card debt, since it is usually the smallest debt. However, credit card debts usually carry the highest rates of interest to robo Advisor. Young individuals are not usually familiar with investing, and using a robo advisor can help them, since it is easier to start with. A robo advisor is an online platform that automatically does all the investing for the investors. These automated platforms will create your portfolio, manage it and even reinvest your dividends. Using a robo advisor can probably be an excellent option for you. If you don't want to make much effort, simply put your money in the robo account, and it will invest your money for you based on the type of your goals and risk tolerance. Lastly, the Robo Advisor usually charges 0.25% each year is the management fee. The risk, as well as the potential rewards on a robo advisor, primarily depends on your investments. Three. Stocks index funds. Now If you don't want to spend time analyzing different companies or individual stocks, investing your money in index funds such as a mutual fund or any TF will be beneficial for you. For instance, if you purchase a broadly diversified fund like an S and P 500 index fund, you will purchase several high growth stocks along with several other stocks. At the same time, however, you may also have a diversified as well as a safer set of companies. If you purchase only a few individual stocks when you purchase an index fund, it means that you will get the weighted average return of all those companies included in the fund. This also indicates that the fund will be less volatile is compared to owning just a few stocks here. Let me also tell you that if you purchase a fund based on a specific industry, it will be less diversified. Overall, investing in an index fund is less risky is compared to purchasing individual ones, and it will also be less work to own a fund dividend stocks. Dividend stocks can help you achieve solid returns. However, they usually do not speed higher. In simple words. This stock is the one that pays a dividend to investors, which means that you will regularly receive a payout. Although several stocks also offer a dividend, they're typically found in mature and older companies. Furthermore, these stocks are more prevalent among older investors of the market, since they produce a regular income for them. And if you are a young investor, you surely need that steady income. These stocks tend to be less volatile as compared to growth stocks. However, they can also sometimes rise or fall significantly. You might be thinking about why investing in dividend stocks is compared safer. Well, a company that pays a dividend is usually older, more mature and established is compared to a growth company. And the most important thing is that some of the top dividend paying companies pay. Twellman is 3% per year and the payout can also rise, sometimes eat minus 10% annually for the longer term growth stocks. If you invest in growth stocks, this means that you are going for higher investment returns there. Like the Ferraris in the world of stock investments in Promise High Growth, they're usually tech companies, but they could be other companies to, as I have already mentioned, that when the return on investment is higher, the risk is also high, so investing in growth stocks can be risky since investors will pay a lot of money for the stock relative to the earnings of the company. And when a bear market arrives, growth stocks may lose their value fastly. Overall, they're considered some of the best performing stocks in the long term, and before you purchase these stocks, you should carefully analyze the company. I would also suggest that you commit to holding these stocks for at least four or five years. If you really want to grow your wealth, you must keep in mind that they are among the stock markets risky your segments and they can plummet in tough times. With that being said, the largest tech companies in the world, such as Amazon, Facebook and alphabet, have been high growth companies. This indicates that if you are able to find the right company, the reward will be worth the risk. Small cap stocks. It is the stocks of small companies that usually have the potential to multiply. Investing in small cap stocks can be beneficial for you if you carefully choose where to invest. For instance, Amazon started as a small cap stock, and it is now one of the largest companies in the world imagine if you had invested in Amazon stocks when it was a small cap stock. However, you can still purchase small cap stocks if you carefully analyzed the company's analyzing companies will require a lot of time as well as effort. And since these companies are not generally well established, investing in small cap stocks can be riskier. Still, the reward will be immense If you find a successful small cap stock for real estate, investing in real estate means that you will have to wait for a long time to get a higher return on your investment. Furthermore, you also need a fair bit of money to get started. But really, estate was still the favorite long term investment among US citizens during 2019. Investing in real estate is considered a passive income, and you might also have to active management. If you want to rent your property, it is important to note that when you invest in real estate, it means that you are putting a lot of money in just one asset. This might not be the best investment option for you if you are looking to diversify your investment portfolio, However, if you want to earn a passive income by renting the property, and you can wait for um or extended period for the returns to come. Then you might want to invest in real estate. If you have purchased a suitable property, you might also earn several times the original amount of money invested. If you hold the asset for the long term five or you i ts if you want to invest in real estate but do not a lot of money to purchase a property, you might want to invest in a real estate investment trust this a growth type investment strategy, and you will be able to hold a commercial real estate portfolio by investing in right. Moreover, since the money is invested in various types of property, it can also be more profitable is compared to owning a single property. And the most exciting part is that you can invest in a real estate investment trust with only a few $1000 and you won't have to manage it actively. Six Bond funds bond funds usually contain several bonds, and these bonds air from different issuers. Furthermore, they're categorized based on the type of bonds, the duration of the bond or the issuer. This means that you will have several options if you are looking to invest your money in bond funds. When a bond is issued, the issuer agrees to pay a set amount of interest each year to the owner of the bond. And when the duration of the bond ends, the issuer has to repay the principal amount, and the bond is then redeemed. It is evident that investing in bonds is safer, and when it becomes a part of a fund, it becomes diversified as well. Moreover, if any bond defaults, there will be a lesser impact on your overall portfolio. Since investing in bonds is less risky, the return is also less is compared to investing in stock funds. You just need to remember that all issues air not the same, and corporate issuers air considered riskier as compared to government issuers. Seven. Commodities Investing in commodities such as gold or silver is always a great idea, since these are the basic goods used as inputs in the economy. Investing in commodities offer a hedge against inflation, and it could be an excellent way to diversify your portfolio as well. Usually, commodities air negatively correlated with other asset classes like bonds or stocks. This indicates that if the value of the stock decreases the value of commodities with increase, you can also invest in commodity et EFS that would allow you to gain exposure to individual commodities or various commodities in a sample. Eight Mutual funds In a mutual fund, you invest your money and buying bonds, stocks or some other assets. In simple words. It is a way to diversify and spread your money across several investments. The mutual funds will help you to grow your wealth over time, and you will get high investment returns without having to buy a swell. As manage individual stocks. However, mutual funds typically require investors to initially invest a particular amount ranging from 500 to thousands of dollars. Let me also tell you that several mutual fund investors do not realize that they're paying higher prices is compared to other investors for the same investments. So you should understand all the fees associated with investing in mutual funds before you start investing your money. Nine. Crypto. You may have already heard about investing in Cryptocurrency, and you might have also heard about some people who made millions of dollars. By investing in crypto, however, you must keep in mind that they're volatile and their value could go through extreme ups and downs. I would suggest you first learn about how the crypto system works before you invest in Cryptocurrency. It would be a great idea toe hold a small sum of Cryptocurrency. But keep in mind that purchasing stable coins such a Z, T H or Bitcoin has always preferred. 10. Learn new skills You might not consider learning new skills as an investment. However, You need to understand that improving your skills is essential, and you should invest a small amount of time and money and learning new skills. Improving your knowledge will help you in your career and will eventually increase your income. Final thoughts Although you wouldn't be able to spread your money across all of these investments, I would recommend you pick a least two or three investment options and start making extra money. Start investing your money early in life, and you will have more opportunities in the future. If you like this video, hit the like and subscribe buttons. Also press the bell icon if you never want to miss any video from new investor