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Investing

What Is Investing?

Investing means putting your money into things that can grow in value over time—like stocks, bonds, real estate, or mutual funds—to build wealth for the future.

Why Should Young Adults Invest?

Time is your superpower. The earlier you invest, the more you benefit from compound growth. Unlike simply saving, investing helps your money outpace inflation and builds long-term wealth for goals like retirement, buying a home, or achieving financial freedom.

Basic Concepts

Compound Interest: You earn money on your original investment and on the interest it earns over time.

Risk vs. Reward: Higher potential returns usually come with more risk—but young adults can take more risk because they have time to recover.

Diversification: Don't put all your money in one place. Spread it across different investments to lower your risk.

Types of Investments

Stocks: Ownership in companies—can grow a lot, but more volatile.

Bonds: Loans to companies or the government—lower risk, lower reward.

Index Funds / ETFs: Bundles of investments that follow the market—great for beginners.

Roth IRA / 401(k): Retirement accounts with tax advantages—start here if available.

Smart Investing Habits

  • Start early—even small amounts grow big over time
  • Invest consistently (e.g., monthly through automatic deposits)
  • Focus on the long-term—don’t panic during market drops
  • Use tax-advantaged accounts like Roth IRAs or employer 401(k)s
  • Avoid trying to “time the market”—time in the market matters more

Mistakes to Avoid

  • Waiting too long to start
  • Investing money you might need soon
  • Falling for hype (e.g., meme stocks, crypto FOMO) without doing research
  • Paying high fees on mutual funds or advisors

Goal for Young Adults

Build a habit of consistent, long-term investing so your money starts working for you. Even $50-$100 a month can lead to six figures or more down the road with compound growth.


Compound Interest in Action

This is how much you need to invest monthly to
reach $1 and $2 million by the time you retire!

*This table assumes an average return of 10% annually.*

Age Monthly Investment
to Reach $1 Million
at Age 65		 $2 Million
18 $78 $156
19 $86 $173
20 $95 $191
21 $109 $218
22 $125 $249
23 $142 $284
24 $162 $324
25 $184 $368
26 $209 $417
27 $236 $473
28 $267 $534
Age Monthly Investment
to Reach $1 Million
at Age 65		 $2 Million
29 $302 $603
30 $340 $680
31 $383 $765
32 $430 $860
33 $483 $965
34 $541 $1,082
35 $606 $1,212
36 $678 $1,356
37 $757 $1,514
38 $845 $1,690
39 $943 $1,886