• [E26] 5 Simple Principles for Stock Market Investing in Your 20s

  • Jul 20 2021
  • Length: 34 mins
  • Podcast

[E26] 5 Simple Principles for Stock Market Investing in Your 20s

  • Summary

    1. Start Early
      1. Maria vs. Ana
    2. Automate contributions
    3. Choose good index funds (25% each)
      1. Large cap fund
      2. Mid cap funds
      3. Small cap fund
      4. International fund
    4. Don’t bail when times get rough
      1. Warren Buffett Clip (Berkshire Hathaway)
      2. Bogle Clip (Founder of Vanguard)
      3. Growth example (missing best market days)
      4. Rolling Returns
    5. Diversify
      1. As time goes on and your income increases, look for ways to diversify your investment portfolio (though never abandon index funds)
        1. Index Funds (within an IRA or 401k – preferably a Roth)
        2. Stocks and mutual funds
        3. Cryptocurrency
        4. Real estate
        5. Insurance/protection products (whole life/infinite banking, annuities, etc.
    6. Work on increasing your income and staying the course
      1. Boredom is one of the biggest risk factors you’ll face in investing

    Show Links

    https://www.moneyunder30.com/small-cap-vs-mid-cap-vs-large-cap

    https://www.schwab.com/investing-principles

    https://www.thesimpledollar.com/investing/stocks/tempted-to-sell-missing-just-a-handful-of-the-best-stock-market-days-can-tank-your-returns/

    https://www.thebalance.com/rolling-index-returns-4061795

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