Investing for Young Adults: Best Investments to Make [2022]

The earlier you can learn how to start investing money, the better prepared you will be financially in the future. Keep reading to learn about the best investment accounts for young adults and how to invest in your 20s.

For young adults, time is on their side in terms of investing. They can take advantage of compound interest and tax-advantaged investments when they invest long-term.

Best Long Term Investments for Young Adults

Coming out of college, many young adults face sizable debt loads today compared to prior generations.  These new college-attendees now must face the difficult decision of choosing between paying off student loans or beginning to invest in earnest.

1. Debt Elimination

It’s never too early to start saving for retirement. Individual retirement accounts (IRAs) and company retirement accounts, such as 401(k), 403(b) and 457 plans are some of the most popular ways to save for retirement. 

2. Best Retirement Investment Accounts for Young Adults

Health savings accounts offer a unique tax benefit not seen in other tax-advantaged investment accounts: a triple tax benefit. 

3. Health Savings Account (HSA)

If you can save money for a down payment on a house which looks to appreciate in value, you should consider setting aside money in a high-yield savings account or other riskless account which still pays a respectable level of interest. 

4. Real Estate

An ETF is a collection of securities, such as stocks, that usually tracks an underlying index (though they can invest in any number of industry sectors).

5. Exchange-Traded Funds (ETFs)

Like ETFs, mutual funds act as collections of securities, such as stocks and bonds, which usually track an underlying index or trade based on targeted investing styles (e.g., growth vs. value).

6. Mutual Funds

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