Best financial products for young investors

Joseph B. Hash

The word investment is very often misused to talk about things such as education, cars, household items. While they may be financially sound decisions to make, they are not in themselves investments.

This article will guide you on making better investment decisions. As long as people continue to generate wealth, there will always be a need to invest, why?

Investments help to: Grow your income flow, Sponsor emergencies and other financial projects and Ease retirement hassles and financial crises. The need for investment could not have been explained better than what the Coronavirus pandemic illustrated. For  many individuals and businesses, there was a downturn to their existence and for others, their past investment decisions served as a life jacket.

There are many types of financial products:

  • Stock
  • Bonds
  • Mutual Funds and ETFs
  • Insurance Products
  • High-yield savings accounts
  • Certificates of deposit(CDs)
  • Government bond funds
  • Short-term corporate bond funds
  • Municipal bond funds
  • Dividend stock funds
  • Rental housing
  • Cryptocurrency

The above and more are investment products, however all investment products are categorized into three basics.

Investment is personal to every individual hence the choice of investment products to go into varies from person to person. However, in recent times, young people’s investment decisions are characterized by one feature, The NEED FOR CONTROL.

Most young people are curious to know how their investment is used, managed and controlled which has induced great interest in the following financial products:

Cryptocurrency:

This is a digital electronic-only currency which serves as a medium of exchange of value. Unlike other currencies, its control is decentralized away from the powers of one singular individual or government. Currently, bitcoin is the leading cryptocurrency and it is the most widely available and sought after. The value of your investment is solely based on the purchasing power of the currency you trade in.

Rental housing:

Young people have equally become interested in real estate and property investment. As earlier stated, this allows for individual control over one’s investment. Real estate investment does not only ensure control but the value does not diminish or depreciate.

Stock:

Research reveals that over 55% of Americans invest in stocks. Stocks allow individual ownership in publicly owned companies. Ownership is measured in percentage of shares purchased.

Bonds:

This involves loaning money to a bond issuer which could be the government or a corporation in return for the principal amount lent and an interest at the due date.

Young people equally seek out entrepreneur loans but adequate caution is required before making any financial decision. Never get lost in what companies to invest in.  

Conclusion:

All investment types come with their many risks, in fact investment is said to be for the courageous and young people have demonstrated this in no small measure in recent times as they are gradually dominating the financial market. Statistics have shown that over 70% of the cryptocurrency market is invested in by young adults trying to create wealth, trade or simply grow their net worth by saving in bulk.

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