What Are the Best Investments for Young People?

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The best investments for young people are diverse stock equities with a high potential for growth. Find out why young people should be aggressive and take risks when investing with information from a financial planner in this free video on investments.

Part of the Video Series: Investment Facts
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Video Transcript

Hi, there. I'm Cathy Pareto, the founder of Cathy Pareto and Associates, certified financial planner, here in Miami, Florida. In this clip, we're going to be talking about what are the best investments for young people? Well, young people or old people, diversification's always going to be at the heart of that. So young people, which I assume will have limited assets to invest, you want to be able to buy as much stuff as you can with as little as possible if you're on a budget, for example, doing 50 dollars a month. The best investments for young people are investments that have a high potential for growth. Typically, stocks or equities, as we call them. Stock funds enable a young investor to...yes, it'll be subject to the short-term fluctuations of the market, but over the long-term, will be able to capture excess market returns through their exposure to these funds. Now, the older you get, the more...the less risk you'll probably want to absorb, and so the older you get, the more bonds you'll take on. But young investors really got to look at aggressive growth funds, equity funds, U.S. funds, international funds, and so on and so forth. Be cognizant of the costs with those funds and investments, and always be aware of how that particular investment fits in with the rest of your portfolio. Young people can take risks; older people cannot take as much. And that's a little bit...a little bit about investing for young people, and this has been Cathy Pareto in Miami, Florida.

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