Best Investments to Make for Young People

Posted on: in [ Wealth Management ]

When you are in your 20s, it is the best time to start thinking about which investments you need to be making.

Why?

You are young and generally have fewer financial responsibilities. Whether you are planning to buy a house in the future or take a big trip, investing in your future is important. You may be newly married or just starting college. Either way, State Bank wants to provide you some ideas of what you might need to invest in for the future. Now is the time to start investing because your money will have time to grow.

Best investments for young people:

Retirement

  • Think you’re too young to start saving for retirement? Think again. Starting an IRA or savings for retirement is the best thing you can do right now and your future self will thank you for allowing all your deposits the time to grow with compounding interest.

Save for college

  • Whether you are in college or are going to go eventually, save, save, save! Saving a little bit of money from each paycheck can go a long way if you stay consistent. State Bank has saving options to help you along the way.

Short-term investments

  • Consider investing in a short-term CD or opening a savings account. If you are planning to study abroad in the near future or going on a vacation, a savings account helps you set aside money in a separate account so you aren’t tempted to use it on other expenses. 

Saving for a down payment on a house

  • If you are a newlywed or looking to buy a house, save for the down payment. You will thank yourself when the time comes around to buying because you will have a security net that will help buy your dream home. That, and the more of a down payment you can make the less you need to borrow, which saves you money on interest payments.

Investments are important at any stage of life. While you are young, it never hurts to start saving for whatever the future holds. Please contact State Bank today or our Financial Advisor, Mark Holmquist, to learn about all of our investment options and see how they can help you prepare for whatever comes next.

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